The news comes from Apple's own Apple Store App, which indicates Apple is offering up to €220 for older iPhones (approximately $300). The program allows you to trade in an iPhone 3G and get credit towards any current iPhone model. Apple says it will also recycle the older iPhones instead of having customers throw them away.
The program is set to expand to Australia as well, according to sources. Apple has reportedly been training several employees in the area on the program. Apple also offers an iPad trade-in program but that is not offered in Italy just yet.