Victoria's gas rules for new homes and existing homes, in plain words

There is a lot of talk around town about gas being "banned". Some of it is right, some of it is out of date, and some of it was a proposal that never became law. The rules affect what we install, so we have read the government's own notices. Here is where things stand at the time of writing, in date order.

July 2022: the Gas Substitution Roadmap

The Victorian Government released Victoria's Gas Substitution Roadmap in July 2022. It is a plan, not a law. It sets out how the state intends to rely less on fossil gas while keeping supply reliable and prices in check. Most of what follows grew out of it.

14 December 2023: the Roadmap Update

The Minister for Energy and Resources released an update on 14 December 2023. It announced the first hard rule below, and said the government would consult on extending it to all new homes and on how existing homes might switch from gas as old appliances wear out.

1 January 2024: no gas for new homes that need a planning permit

Amendment VC250 to the Victoria Planning Provisions came into operation on 1 January 2024. It prohibits new gas connections for new dwellings, apartments and residential subdivisions where a planning permit is required. The government's own release described it as applying to new homes that need a planning permit.

That left a gap. Plenty of new homes do not need a planning permit, so plenty were still being built with gas.

December 2024 to February 2025: the consultation

Draft building electrification regulations and a regulatory impact statement were put out for public comment from 13 December 2024 to 28 February 2025. The government later said it received 117 written submissions and 2,560 survey responses.

This is where some of the confusion comes from. The draft's preferred option would have required gas hot water and gas heating in existing homes to be replaced with electric appliances when they reached end of life.

June 2025: the decision

On 24 June 2025 the government announced its final position. The heating part was dropped. The notice of decision published in the Government Gazette on 26 November 2025 confirms the removal of the proposed ban on installing, or replacing like for like, gas space heating appliances in existing homes. The regulations were made as the Building and Plumbing Amendment Regulations 2025.

1 January 2027: new homes all electric

From 1 January 2027, all new homes must be built all electric, and so must new commercial buildings. This is a building rule, so it reaches the homes the planning rule missed. The government's release says industrial, manufacturing and agricultural buildings are not covered. There is an exemption where the building surveyor certifies that substantial progress was made on the design before that date.

If you are building, plan for reverse cycle heating, a heat pump or other electric hot water, and an induction cooktop from the start.

1 March 2027: gas hot water in existing homes

From 1 March 2027, a gas hot water system in an existing home cannot be installed or replaced like for like. When yours reaches end of life, it must be replaced with an electric option such as a heat pump. Pool and spa heaters are included. The government says:

• existing gas hot water can still be repaired
• it can be temporarily removed and reinstalled during renovations

The Gazette notice lists exemptions, including where the switchboard would need altering, where a gas water heater that needs no electricity to run is being replaced, and where a unit fails within its warranty period.

What is not changing

The government's June 2025 release says there are no changes to heating for owner occupiers, no changes to gas cooking in existing homes, and no changes to bottled gas (LPG) use. A working gas heater or cooktop in your own home can stay.

Rentals are different

Separate minimum standards for rental homes also start on 1 March 2027. Under them, a gas heater in a rental must be replaced with a reverse cycle air conditioner at end of life, and gas hot water with a heat pump. There are also requirements for an efficient cooling system in the main living area at the start of a new lease. The government says each required upgrade is eligible for a Victorian Energy Upgrades discount, applied through an accredited provider.

What this means if you have gas now

If you own your home and your gas heater is working, nothing forces you to change it. If your gas hot water is old, it is worth deciding what you will replace it with before it fails, because from March 2027 the answer is electric anyway. If you are a landlord, the heater and hot water rules are on a clock.

We install reverse cycle split systems, ducted reverse cycle and heat pump hot water across Hepburn Shire and the towns around it. For the running cost side, see reverse cycle cheaper than gas heating. For the hot water discount, see the VEU discount on heat pump hot water.

If you would like a hand working out what applies to your place, reach us through our contact page or on 0417 734 206, Monday to Friday, 8:00am to 4:30pm.