Ducted reverse cycle or gas ducted heating

Both systems put warm air through ducts into your rooms. One burns gas to make the heat. The other uses a heat pump to move heat in from outside air, and can run backwards in summer. On paper they look like the same product. In a Central Victorian winter they behave quite differently, and so do the bills.

Here is how they compare on the things people actually ask us about.

Which costs less to run

Sustainability Victoria publishes yearly heating costs for an average older Melbourne home heated to 20 degrees, using mid 2025 prices. For a small home of about 100 square metres, ducted reverse cycle comes to about $721 a year against $1,540 for a 6 star gas ducted heater. For a medium home of 160 square metres it is about $1,318 against $2,299. For a large home of 220 square metres, about $1,813 against $3,036.

Those are Melbourne figures. Sustainability Victoria suggests multiplying Melbourne heating costs by about 1.5 for a cold climate like Ballarat, and the ranges around Daylesford, Trentham and Hepburn sit in that kind of weather. The gap does not close in the cold. It grows, because you are heating for more of the year.

The same table shows split systems coming in lower again than ducted reverse cycle, mostly because you only heat the rooms you are in. We look at that comparison in reverse cycle cheaper than gas heating.

Which one cools

Gas ducted does not. If you want cooling with a gas ducted heater, you add a separate add-on cooler or split systems. Ducted reverse cycle does both from one unit, through the same ducts and the same controller. Summers up here are short but they do get hot, and a bedroom zone that cools at night is worth having.

Does reverse cycle cope with frost

A modern reverse cycle unit chosen for a cold climate does. The things that matter are getting the size right for heating rather than cooling, choosing a unit with good heating capacity at low outdoor temperatures, and putting the outdoor unit where it can drain and defrost properly. We cover the heating side in more detail in sizing ducted for a cold climate.

The feel is a little different. Gas ducted tends to blast hot air in bursts. A well set up reverse cycle system holds a steadier temperature with longer, gentler running. Most people prefer it once they get used to it.

What the rules say

For an owner occupier, at the time of writing, there is no requirement to remove a working gas heater. The Victorian Government's June 2025 announcement on building electrification said there would be no changes to heating for owner occupiers. The earlier draft rules had proposed gas heating be replaced with electric at end of life in existing homes, and that part was dropped from the final regulations.

Two groups are affected differently:

• New homes. From 1 January 2027, new homes must be built all electric, so gas ducted is off the table there.
• Rentals. From 1 March 2027, under the rental minimum standards, a gas heater in a rental that reaches end of life must be replaced with reverse cycle.

The full timeline is in Victoria's gas rules in plain words.

The VEU discount

Swapping a ducted gas heater that is the main heating for a house for a high efficiency ducted reverse cycle system is one of the Victorian Energy Upgrades scenarios. An accredited provider applies the discount, and how much it is depends on the provider, the product and certificate prices. There is a minimum amount you must pay yourself. The Essential Services Commission has published that for ducted air conditioners this rises from $1,000 to $3,000 including GST from 30 September 2026.

The provider makes the final call, but we can tell you whether your job is likely to fit and what the provider will want to see. How VEU discounts work explains the mechanics.

When gas ducted still makes sense

If your gas ducted is fairly new, working well, and you have no interest in cooling, there is no rush. Keep it serviced and run it carefully. The time to decide is before it fails, not on a cold July night when it has.

If it is old, if you are already paying a gas supply charge mostly for heating, or if you want cooling, reverse cycle is worth pricing properly. In many homes the existing ducts are a starting point, though not always a keeper. See replacing old gas ducted, and whether the ducts can stay.

Getting it measured

Every ducted system we install is measured and quoted before anything is ordered. We look at the house, the ducts and how you use the rooms, then size it for the cold. There is more on our ducted page.

To book a visit, use our contact page or ring 0417 734 206, Monday to Friday, 8:00am to 4:30pm.