Govt confirms cuts to car funding

The federal government will cut $500 million in funding assistance to the car industry over the next four years.

The federal government will start cutting assistance to the car industry from 2014/15, but says enough will remain to support investment.

The mid-year economic and fiscal outlook released on Tuesday confirmed a $500 million cut to the automotive transformation scheme over four years.

But the government says $1.3 billion will remain available over eight years.