Rally legend Neal Bates will delay his racing retirement until the sport's young stars start to beat the 49-year-old.

But after 31 years dodging trees and taming some of the most dangerous tracks in the world, Bates says the thing that makes him most nervous is watching son, Harry, get behind the wheel.

Bates, a four-time Australian Rally champion, was inducted into the ACT Sport Hall of Fame on Friday night, becoming Canberra's first motor sport great to join the elite group. It's a long way from 1984 when he started his career in an $800 Datsun.

Bates still competes in the Classic car series around Australian and New Zealand, despite retiring from professional racing in 2009. His son Harry, 19, has joined in this year, starting his own rally career.

"I'm still competitive ... My son has just started doing rally and I think about the danger [of the sport] more now," Bates said.

"I really do struggle to watch him, I really worry about him. I keep trying to mention other sports he could do, but I'm not having much luck.

"I'll keep going while I'm enjoying it. The moment that doesn't happen means it's time to give up.

"The problem is at the moment I can see myself turning 80 and still enjoying it. I always stir up the young guys and say that if they want to be good, they've got to beat the old blokes."

Bates was the first driver to win the Australian Rally championship three times in a row from 1993-95.

He competed in the World Rally Championship, won Tasmania's Targa championship in 1995 and has twice finished in the top-10 of the V8 Bathurst 1000 as well as sitting on pole with co-driver Wayne Gardner in 2000.

Bates is the only driver to hold the Phil Irving Award for engineering excellence and the Peter Brock Medal for his contribution to motorsport.

Bates still recalls being sent to the principal's office at school when he told his career advisor he wanted to be a rally driver.

"It was nice to turn it into something rather than just a dream," Bates said.

"The teacher thought I was being a smart-arse, but I feel incredibly lucky to do what I've been able to do and I want to pass that on.

"I bought a Datsun 1600 when I was 18 years old and started doing ACT rallies, it grew from there. I won my first one in the Datsun 1600 that I paid $800 for. From my very first rally I think I had a knack for it."

Bates wants to pass on his years of experience to the next generation.

That includes helping Canberra rising star Adrian Coppin as he attempts to make his mark on the world rally stage.

Coppin has been competing in the World Rally Championship and will return to Australia to compete in Coffs Harbour next month. Bates will race at Coffs Harbour in the Classic category.

"I enjoy helping the young guys coming through in the sport. "

NEAL BATES

Australian Rally Champion: 4 (1993, 94, 95, 2008)

Targa Tasmania: 1 (1995)

Australian Classic Rally Champion: 1 (2012)

Awards: Peter Brock Medal and Phil Irving Award