Victoria Gas Ban 2027: What Changes on 1 March
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From 1 March 2027, Victorian law requires a mains gas hot water unit that fails in an existing home to be replaced with an electric one.In practice that usually means a heat pump. Here is the sourced guide to the timeline, who is covered, what "end of life" means, and rebates worth up to $2,830.
Exemptions: Limited exemptions apply, for example where there is no room for an electric unit.
In 60 seconds
- •1 Jan 2024 (in force): No new reticulated gas connections in new residential builds requiring a planning permit.
- •1 Jan 2027: New homes and most new non-industrial commercial buildings must be built all-electric.
- •1 Mar 2027: A mains gas hot water unit that fails in an existing home must be replaced with an electric one. Repairs still allowed; limited exemptions apply.
- •Owner-occupiers: only hot water is covered. Gas cooking and heating are not.
- •Rentals: stricter rules. Gas heaters and gas hot water both need electric replacements at end of life.
- •Rebates: up to $2,830 stacked across Solar Victoria, Victorian Energy Upgrades, and federal STCs.
Policy timeline
The Victorian Gas Substitution Roadmap was released in July 2022 and has evolved through consultation and amendment regulations.
Gas Substitution Roadmap released
Victoria becomes the first Australian state to publish a full gas transition strategy.
New-build connection ban begins
Planning Provision Amendment VC250 gazetted. New dwellings requiring a planning permit cannot have reticulated gas. LPG unaffected.
Updated Gas Distribution Code of Practice
ESC tightens rules on distributors promoting gas connections.
Full-cost gas connections
New gas customers pay full upfront connection cost (no cross-subsidy from existing customers).
Policy announced
Premier Allan announces the 2027 timeline and the Building and Plumbing Amendment Regulations 2025.
All-electric new buildings
New homes and most new non-industrial commercial buildings must be built all-electric. Large industrial and existing commercial kitchens exempt.
Gas ban starts for existing homes
Owner-occupiers: a mains gas hot water unit that fails must be replaced with an electric one, with limited exemptions. Rentals: broader rules also cover gas heaters, and Minimum Energy Efficiency Standards for rentals start.
Sources: Energy Victoria, Planning Victoria (VC250), Premier Allan (24 Jun 2025).
Who is affected
The scope depends on what you own and what you are doing. Three distinct groups face three different rule sets.
Hot water only
- Covered: From 1 Mar 2027, a mains gas hot water unit that fails must be replaced with an electric one, usually a heat pump. Limited exemptions apply.
- Not covered: Gas cooking, gas space heating (ducted, hydronic, wall), pool heating. Repairs to existing gas hot water still allowed.
- Forced disconnect? No. You can keep using your current system until it fails.
Broader obligations
- Covered: From 1 Mar 2027, gas hot water and gas space heaters at end of life both require electric replacements.
- Also required: Ceiling insulation, 4-star water-efficient showerheads and efficient cooling at a new lease, and draught sealing from 1 July 2027, under Minimum Energy Efficiency Standards.
- Who pays: The landlord, not the tenant.
All-electric new builds
- Already in force (1 Jan 2024): New residential dwellings requiring a planning permit cannot have new gas connections.
- From 1 Jan 2027: New homes and most new non-industrial commercial buildings must be all-electric, covering both gas connections and gas appliances.
- Exemptions: Large industrial, existing commercial kitchens, LPG.
Apartments with a shared gas hot water system: where one central system serves the whole building, any change goes through the owners corporation, so it is worth raising early rather than waiting for the plant to fail.
What "end of life" means
The rules are due to apply at the point of replacement. Nobody is coming to remove a working gas system: it can keep running for as long as it works.
Usually counts as end of life
- Complete failure: the system stops heating water and cannot reasonably be repaired.
- Safety failure: a gas fitter finds the system unsafe to keep running, for example a leak or a cracked heat exchanger.
- No parts: a critical part fails and a replacement is unavailable or costs more than a new system.
Usually does not
- Replacing a thermocouple or a sacrificial anode.
- Relighting a pilot light.
- Any repair that leaves the system running safely. If it can be fixed, you can keep using it.
The economics
Running costs for a typical 3-person Melbourne household; installed prices are PumpSwap's modelled Victorian averages (see heat pump hot water cost). Sources linked at the bottom.
Staying on gas
Switching to heat pump
Cost-of-inaction math
If your gas system fails after 1 March 2027, you will need an electric replacement anyway, chosen in a hurry, possibly with smaller rebates and while many other households are booking the same installers.
- →Acting now: $2,176 - $4,270 after rebates (modelled Victorian average), your choice of installer, about $330/yr savings start immediately.
- →Waiting until failure in 2028: likely same upfront cost, lost savings in the interim, emergency pricing premium possible.
- →Waiting until 2030: rebate programs may have been reduced or means-tested harder, the gas bill is likely higher, and the timing is no longer yours.
Comparing gas and heat pump replacement prices? What replacing gas hot water in Victoria costs.
Rebates: how to stack up to $2,830 off
Three separate programs stack together for Victorian households replacing gas hot water with a heat pump.
Solar Victoria Hot Water Rebate
Up to $1,000 (imported) or $1,400 (locally-made). Owner-occupier, combined household taxable income under $150,000 (reduced from $210,000 on 1 July 2026), property value under $3m, existing system at least 3 years old, one per address.
solar.vic.gov.au →Victorian Energy Upgrades (VEU)
Delivered as upfront discount via accredited providers. Activity 3C (replacing gas hot water). No means test. Amount varies with VEEC certificate price.
esc.vic.gov.au →Small-scale Technology Certificates (STCs)
Deemed savings under the federal Small-scale Renewable Energy Scheme. Applied as point-of-sale discount. Amount varies by climate zone and system efficiency.
What to do now
If your gas hot water system is 6 years old or more, start planning. Victorian gas storage systems typically last 8-12 years.
Check your eligibility
The Solar Victoria rebate requires combined household taxable income under $150,000 (since 1 July 2026) and property value under $3m. VEU and STCs have no means test.
VIC rebate details →Compare heat pump brands
14 brands tracked, from $2,500 installed before rebates. Efficiency (COP), tank size, warranty, and noise vary widely.
Compare 14 brands →Get a quote
Modelled installed prices across 360 Victorian suburbs run from $1,900 to $4,900 after rebates. A free quote from a local installer takes 2 minutes to request.
Get free quote →In Melbourne? See heat pump hot water in Melbourne for modelled prices across every Melbourne suburb we cover, and where they run lowest and highest.
Before your system fails
- Check its age. The manufacture date is on the data plate, usually on the front or side of the unit. Over 8 years old, start planning; over 10, it could go at any time.
- Get quotes while it still works. You compare installers and systems on your timetable, not the morning the hot water runs cold.
- Check your electrical supply. A heat pump needs its own circuit. An older switchboard may need work, and it is better to find that out before the swap.
- Confirm your rebates before installation. The Solar Victoria rebate has eligibility rules and paperwork; STCs and the VEU discount are usually taken off the quote by the installer, so check both appear.
- Pick a mild month if you can. You lose hot water for a few hours on the day; autumn and spring make that painless.
Frequently asked questions
When does Victoria's gas ban start?
There are three key dates. From 1 January 2024 (already in force), new residential dwellings requiring a planning permit cannot have reticulated natural gas connections. From 1 January 2027, new homes and most new non-industrial commercial buildings must be built all-electric. From 1 March 2027, Victorian law requires a mains gas hot water unit that fails in an existing home to be replaced with an electric one. Limited exemptions apply, for example where there is no room for an electric unit.
Are there exemptions?
Yes, a limited set. The regulation exempts homes with no suitable space inside or outside for an electric unit, apartments on a shared central gas system, cases where another law such as a heritage control prevents it, cases needing a switchboard upgrade or electricity network augmentation, replacements under warranty, and gas units that run without mains power. Bottled LPG is not covered. A working gas system never has to be removed: the rule applies when a unit is replaced.
Will I be forced to disconnect my gas?
No. The 1 March 2027 rule is due to apply only at replacement, not as a forced disconnection. You can keep using your existing gas hot water system for its full service life, and repairs are still allowed. The rule would only apply when your system fails or is retired and you need a new one.
What does "end of life" mean?
In practice, the point where the system stops heating water and cannot reasonably be repaired, or a gas fitter finds it unsafe to keep running. Routine repairs, such as replacing a thermocouple or a sacrificial anode, or relighting a pilot light, are not end of life. If your system can be repaired and runs safely, you can keep using it.
Does it cover gas cooking and heating?
For owner-occupiers in existing homes, no. Gas cooking, gas space heating (ducted, hydronic or wall) and pool heating are not covered by the rules that start on 1 March 2027. Only hot water is. Rentals face broader rules that also cover gas space heaters at end of life.
What if I'm renting?
Rentals face Minimum Energy Efficiency Standards, set in law, from 1 March 2027. End-of-life replacement applies to both gas hot water and gas space heaters, and the standards also require ceiling insulation, 4-star water-efficient showerheads and efficient cooling at a new lease, plus draught sealing from 1 July 2027. The costs fall on the landlord, not the tenant.
How much does it cost to switch from gas to heat pump hot water?
PumpSwap's modelled average for Victoria is $3,876 - $5,970 fully installed before rebates and $2,176 - $4,270 after rebates, across 360 Victorian suburbs. Rebates that can stack: the Solar Victoria hot water rebate ($1,000 - $1,400), a Victorian Energy Upgrades discount ($200 - $630) and federal Small-scale Technology Certificates ($500 - $800). These are modelled estimates; a quote for your home is the only exact figure.
What rebates are available?
Three programs stack for Victorian households: (1) the Solar Victoria Hot Water Rebate gives up to $1,000, or up to $1,400 for an eligible locally made unit (combined household taxable income under $150,000 since 1 July 2026); (2) Victorian Energy Upgrades (VEU) provides an upfront discount through accredited providers, currently $200 - $630 depending on the certificate price, with no means test; (3) federal STCs are worth about $500 - $800 for a 2026 install, depending on system and climate zone. Combined, the stack can reach up to $2,830.
Why is Victoria changing the gas rules?
The Victorian Gas Substitution Roadmap was released in July 2022. The drivers are declining domestic gas supply (AEMO forecasts a 52.8% drop in Victorian production between 2025 and 2030), the cost of maintaining a gas distribution network for fewer customers, lower household energy bills on electric alternatives ($330/year savings on hot water alone), and emissions reduction commitments. Victoria's goal is net zero by 2045.
What happens if gas prices rise before I switch?
AEMO's 2025 Victorian Gas Planning Report projects LNG imports rising from 32% of winter demand in 2028 to 55% by 2030. The delivered price is modelled at A$17.39/GJ from 2028, above the $12/GJ domestic price cap, due to import costs. Households that switch early lock in electric running costs before gas prices rise.
Are there any exemptions?
For the 1 January 2024 new-build connection ban: LPG (bottled or reticulated LPG) is not banned, staged subdivisions with pre-2024 planning permits remain exempt for all stages, and some buildings not requiring a planning permit are unaffected. For the rules that start on 1 March 2027: repairs to existing gas systems remain allowed. Large industrial facilities and existing commercial kitchens are not affected by the 1 January 2027 all-electric new build requirement.
How many Victorian homes are affected?
Approximately 2 million Victorian households and small businesses use reticulated gas, making Victoria the most gas-connected state in Australia with around 80% of homes connected. Under the rules, most of these households will have to replace gas hot water with an electric system as their units reach end of life. Victorian gas storage hot water systems typically last 8 to 12 years.
Sources and further reading
This page is sourced from Victorian and Australian government publications. Every claim traces back to a specific document.
Primary government sources
This page is independent journalism. PumpSwap receives no government funding. We are a comparison platform that earns lead fees from installers when users request quotes. We strive for accuracy; if you spot an error, email hello@pumpswap.com.au and we will fix it within 24 hours.
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