The announcement's been made by Energy Efficiency Minister Greg Combet in Canberra after a decision by cabinet.
Federal cabinet reportedly has decided to dump the $2.45 billion scheme which provides homeowners with a $1000 rebate for installing roof insulation.
In a visit to Hobart earlier today, Mr Rudd would not confirm or deny the reports.
The scheme was suspended in February, after revelations of shonky installations, but was due to resume in a modified form from June 1.
Ministers are understood to have decided the government's top priority should be assuring the safety of homes with insulation already installed rather than installing more, the Sydney Morning Herald said.
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