Maintaining millions in car industry funding will not change much, according to workers who will be out of a job by 2017.
But the Victorian government is hopeful it will help businesses move out of the ailing industry.
The Abbott government said on Tuesday it would keep the Automotive Transformation Scheme in place until the end of 2017, but could not give a figure on how much money would be provided.
Holden and Ford said the move ensured local operations would keep going until their 2017 end date.
AMWU national vehicle secretary Dave Smith said the decision gave components workers certainty the industry would continue for another two years.
"(But) most of the workers I've spoken to are in the car companies and for them it doesn't change anything," he said outside Toyota in Melbourne.
The Toyota workers were on an extended long weekend, but Mr Smith said not a single one he had spoken to would not trade their generous redundancy packages for a job beyond 2017.
Victorian Industry Minister Lily D'Ambrosio said any unspent money from the ATS must be used to help businesses join the global supply chain or diversify.
"(Prime Minister Tony Abbott) needs to support the automotive industry during the transition so workers aren't left without a job," Ms D'Ambrosio said.
Ford said it was already on track to transform its business to become the largest automotive investor and employer in Australia.
The Geelong-based company said it was the only car maker to contribute to federal and state government job creation funds, creating more than 1200 jobs.
Holden said the ATS was a critical element for stability in the supply base.
South Australian Premier Jay Weatherill said it was vital the restored funds were distributed appropriately.
"At least some of that will be going towards these components manufacturers to make sure they have future security but not all of it is likely to be spent there," he told reporters.
"It's important that that money is quarantined and applied to the transformation task that's going to occur here in South Australia and in Victoria."
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