Getting off gas in Victoria, without the panic.

Last checked: 29 August 2026

The short version. If your gas heater, hot water or cooktop still works, no one is making you tear it out. Victoria's reforms mostly change what you can install, especially in new homes and when an old appliance finally dies. Reverse-cycle (a heat pump) is the main replacement for gas heating, it heats and cools, and the VEU rebate takes a solid chunk off the price.

Do you actually have to get off gas?

Short answer for most people: not right now, and not by force. Victoria's reforms don't require owner-occupiers to remove working gas appliances. You can keep your gas heater, hot water and cooktop and repair them if they play up.

What's genuinely changing is what you're allowed to put in. New homes have to go electric, new gas connections have lost their subsidy, and from 2027 a dead gas hot water unit has to be replaced with electric. So the switch is less a ban and more a one-way door: once an old gas appliance goes, electric is what takes its place. Knowing that early means you choose on your terms, not in a cold snap with a broken heater.

The actual rules and dates

Here's what's real, with dates:

• New homes have been all-electric since 1 January 2024 where they need a planning permit. Government buildings went all-electric earlier, from July 2023.
• New gas connections lost their subsidy on 1 January 2025. You now pay the full up-front cost of a new connection, and since April 2024 gas networks can't offer sign-up inducements.
• From 1 January 2027, building electrification rules broaden, including new commercial buildings (outside industry, manufacturing and agriculture).
• From 1 March 2027, end-of-life gas hot water must go electric. Under reforms announced in 2025, when a gas hot water system reaches the end of its life it is to be replaced with an electric one. The final regulations are still being settled, so confirm the detail with a licensed installer.
• Renters get stronger protections from 2027. Landlords must replace a gas hot water system or heater with electric when it's beyond repair, meet minimum efficiency standards, and provide electric cooling in living areas.
• Owner-occupiers keep their choice. There is no rule forcing you to change working gas cooking or heating.

Why plan ahead, if you don't have to?

Two reasons. First, the direction is fixed: every rule above points one way, so the next appliance you install is very likely to be electric whether you plan for it or not. Second, replacing a dead heater in the middle of winter means taking whatever you can get fast, at whatever price. Deciding while your current system still runs lets you size it properly, get a real quote, and claim the rebate calmly.

Your electric options

For most Melbourne homes getting off gas, the choices are straightforward:

• Reverse-cycle air conditioning is the main one. It's a heat pump that both heats and cools, and it runs far more efficiently than gas heating. A ducted or multi-split system does the whole home; a single split handles one room or a couple of key spaces.
• Heat-pump hot water replaces a gas hot water unit and is the electric option the reforms point to for hot water.

Which is right depends on your home's layout, insulation and how you use each room. That's exactly what a good installer sizes on site.

What does it cost?

Honestly, it depends. A single split system is a modest job; a whole-home ducted or multi-split replacement is a bigger one. The two things that move the number most are how many rooms you're heating and cooling, and the system size your home needs.

The good news is the VEU rebate takes a real chunk off, and your installer builds it straight into the quote so you see the discounted price, not a form to chase later. For the rebate detail and indicative figures, see the VEU rebate guide, and for how the running costs stack up, the gas vs reverse-cycle guide.

The VEU rebate, in brief

The Victorian Energy Upgrades (VEU) program gives you a discount on an efficient electric system, delivered through an accredited provider who handles the paperwork. You sign a short consent form and the rebate comes off your invoice up front.

The one moving part worth watching is the co-payment change on 30 September 2026 described above: for ducted and larger multi-split systems the minimum out-of-pocket rises from $1,000 to $3,000 including GST, and there's a 20kW cap on the capacity that earns a rebate. The full VEU guide walks through who's eligible, how much you can expect, and how to claim.

How the switch actually works

Through a matched installer, it's roughly this:

• A quote that already shows the rebate deducted, so you see your real price.
• You pick an install date.
• The old gas appliance is decommissioned and the new system installed, with an Electrical Certificate of Safety issued.
• Your accredited installer lodges the VEU paperwork. Your only job is to sign the consent form.

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