How the new F1 regulations will work

The FIA raised fears of a potential two-tier Formula One world championship for next season after confirming a 40 million pound (A$81.5 million) budget cap is to be imposed.

Teams who agree to the cap will be allowed freedom on a number of technical points, whilst those unable to adhere to the cap will have to abide by the current regulations.

Here, we outline the differences between the two.

* Engines - No rev limit for capped teams who will also be allowed to use more than eight per season; uncapped will have to operate at a maximum of 18,000rpm and remain restricted to no more than eight.

* Gearbox - Currently each driver may use no more than one gearbox for four consecutive races. That will not apply to the capped teams.

* Bodywork - Capped teams will be allowed movable front and rear wings; uncapped will have front wing only.

* KERS - Capped cars will be allowed double the boost from the system that stores energy under braking, which will be worth around 13.5 seconds per lap, compared to 6.7s for uncapped cars.

* Testing - Capped cars will be allowed unlimited out-of-season track testing; uncapped will continue to be limited to 15,000km.

* Wind tunnel - Unlimited use of a full-scale facility for uncapped teams; capped teams are limited to a 60 percent of full-size model and at a speed not exceeding 50 metres per second.

In addition, the FIA has also confirmed from 2010 there will be a ban on refuelling during a race and on the use of tyre warmers for all teams.