Victoria Gas Hot Water Phase Out
Victoria's Gas Hot Water Phase-Out: What Plumbers Need to Know Before 1 March 2027
From 1 March 2027, Victoria's hot water market changes for good. When an existing gas hot water system reaches the end of its life, the replacement has to be electric. For licensed plumbers, that means more heat pump changeovers, different stock on the van, and more conversations with clients who have only ever owned gas.
Our team has over 60 years of combined trade experience, and we have been fielding questions on these rules at the counter for months. This guide sets out what the regulations actually say, where the grey areas are on site, and what you need on hand to do a clean, compliant changeover the first time.
Quick Answer
- From 1 January 2027: new homes in Victoria must be built all-electric, with no gas connection.
- From 1 March 2027: when a gas hot water system in an existing home reaches end of life and cannot be repaired or safely maintained, it must be replaced with an electric system such as a heat pump.
- Repairs are still allowed. A gas unit that can be fixed can be repaired. The rule applies at end of life, not at the first fault.
- Not affected: gas heating and gas cooking in existing owner-occupied homes.
- Rentals: from March 2027, landlords must replace gas hot water and gas heaters with efficient electric options at end of life.
Key Dates at a Glance
| Date | Applies to | What changes |
|---|---|---|
| 1 January 2027 | New homes and most new commercial buildings | Must be all-electric. No gas connection, piping or appliances in the building permit. Permits approved before 31 December 2026 may still connect gas. |
| 1 March 2027 | Existing homes (owner-occupied) | An end-of-life gas hot water system must be replaced with an electric system. Gas heating and cooking are unchanged. |
| 1 March 2027 | Rental properties and public housing | Gas hot water systems and gas heaters must be replaced with efficient electric appliances at end of life, alongside new minimum energy efficiency standards. |
Sources: Victorian Government (Premier of Victoria media release) and AusNet Services customer guidance. Industrial, manufacturing and agricultural buildings are excluded from the new-build requirement.
Repair or Replace? Making the End-of-Life Call on Site
This is where most of the questions sit. The regulations do not ban working on gas hot water. They are triggered when a system reaches the end of its life, which the distributor guidance describes as a unit that cannot be repaired or safely maintained.
Where a repair is viable, our hot water spares range covers the common replacement parts.
Protect yourself by documenting the decision on every job after 1 March 2027:
- Record the fault, the unit make, model and age, and photos of the failure point.
- Note why a repair is or is not viable (parts unavailable, cost versus replacement, safety).
- Keep the record with the job file and the customer's invoice.
Two further points are worth knowing. First, a gas unit can be temporarily removed and reinstalled during a renovation. Second, if a client pushes for a like-for-like gas replacement on a failed tank after the start date, the answer is no, and a written record of the failure is your best defence if it is ever questioned.
What the Rules Do Not Change
Clients often assume "the gas ban" means everything gas has to go. It does not. For existing owner-occupied homes:
- Gas space heating can stay, and can be replaced with gas.
- Gas cooktops and ovens can stay, and can be replaced with gas.
- Existing gas supply stays connected if other gas appliances remain on it.
For work on the gas appliances that remain, see our gas accessories range.
Choosing the Replacement: Heat Pump and Other Electric Options
The Victorian Government's own material points to heat pumps as the main replacement, and that is where most of the changeover work will land. Before quoting, check which system types satisfy the regulations and qualify for rebates, as not every electric unit will.
| System type | Best suited to | Watch-outs on install |
|---|---|---|
| Integrated heat pump (tank and compressor in one) | Most standard houses replacing a gas storage unit | Needs airflow clearance and a larger footprint than gas instantaneous. Position away from bedroom windows and neighbour boundaries for noise. |
| Split heat pump (separate compressor) | Tight sites, or where the tank must sit inside or in a garage | Refrigerant line set between units may need a refrigeration licence depending on the system. Plan the run before quoting. |
| Solar thermal with electric boost | Homes with good roof orientation and an existing solar hot water setup | Confirm eligibility under the regulations and rebates. Roof work and frost protection add labour. |
Sizing and Performance in a Victorian Winter
Heat pump recovery slows in cold weather. Size the tank on household use rather than simply matching the old gas unit, and check the manufacturer's rated performance at low ambient temperatures for sites in colder areas. Many units allow timer-based heating, so on homes with rooftop solar, running the compressor during the middle of the day gives the client the biggest saving.
The Victorian Government estimates an electric hot water system saves a household around $330 a year, or around $520 with solar. That is a useful figure when a client is weighing up the change.
Heat Pump Changeover Checklist
Moving from gas to a heat pump is more than a swap. The hot water side of the job needs the same compliance checks as any other install:
- Storage and delivery temperatures. Stored water must be held at 60°C or above to control Legionella. Hot water delivered to bathroom and personal-hygiene outlets must be limited to 50°C (45°C in aged care, childcare and healthcare settings). Fit a tempering valve where the heat pump does not temper internally. Our Hot Water & Pressure Valve Buyer's Guide explains which valve suits which install, and a hot water valve kit covers the essentials in one order.
- Drains. Run the PTR and expansion control valve drains, and the heat pump condensate line, to an approved discharge point. Stock up on copper press, PEX pipe and fittings and lagging, or see our copper press vs solder vs push-fit comparison to choose a jointing method.
- Base and clearances. A level, stable base that can take the weight of a full tank, with manufacturer clearances for airflow and service access.
- Gas disconnection. Isolate and cap the gas branch or arrange meter disconnection. This is licensed gasfitting work.
- Electrical. The heat pump needs a suitable circuit. Electrical connection must be done by an appropriately licensed person.
For more on compliance, read our plumbing compliance and licensing guide and our WaterMark certification guide.
Rebates to Mention to Your Clients
Up-front price is usually the client's first objection. Two Victorian programs can reduce it:
- Victorian Energy Upgrades (VEU): a discount offered through accredited providers when an eligible gas or electric system is replaced with an efficient heat pump.
- Solar Victoria Solar Homes program: a hot water rebate for eligible households, with an additional amount for eligible Australian-made systems.
When the reforms were announced, the Victorian Government put the combined rebates at up to $1,400. Amounts and eligibility change, so check the current figures on the Solar Victoria and VEU websites before quoting. Clients will ask, and a confident, accurate answer wins the job.
The Business Opportunity: Get Your Stock and Pricing Sorted Early
Every gas storage unit in Victoria that fails after 1 March 2027 becomes an electric changeover. That is a bigger, higher-value job than a like-for-like swap, and demand will not be spread evenly. Expect a spike in winter, when older gas units fail under load and families cannot wait.
The plumbers who do well will be the ones who have:
- Reliable supply of hot water units, so a failed system can be replaced without a long wait.
- Changeover consumables on the van, including flexible hoses and general valves.
- A set changeover price that includes gas capping, valves, pipework and removal of the old unit.
- Trade pricing locked in. See our trade account pricing guide, register for a trade account, or check the current bulk deals.
Frequently Asked Questions
When does the gas hot water phase-out start in Victoria?
From 1 March 2027, a gas hot water system in an existing Victorian home that reaches end of life must be replaced with an electric system such as a heat pump. From 1 January 2027, all new homes must be built all-electric.
Can I still repair a gas hot water system after March 2027?
Yes. Gas hot water systems can still be repaired. The requirement to switch to electric only applies when the system reaches end of life and cannot be repaired or safely maintained.
What counts as end of life for a gas hot water system?
A system is at end of life when it cannot be repaired or safely maintained, for example a leaking inner tank or a failed heat exchanger with no economical repair. Plumbers should document the fault and the reason a repair is not viable.
Do Victorian homeowners have to replace gas heating or gas cooktops?
No. The rules do not change gas heating or gas cooking in existing owner-occupied homes. Only gas hot water must be replaced with electric at end of life.
What are the rules for rental properties?
From March 2027, landlords must replace gas hot water systems and gas heaters with efficient electric appliances when they reach end of life, as part of new minimum energy efficiency standards for rentals and public housing.
Can a gas hot water unit be removed and reinstalled during a renovation?
Yes. A gas hot water system can be temporarily removed and reinstalled during renovations without triggering the electric replacement requirement.
Are rebates available for replacing gas hot water with a heat pump?
Yes. Eligible households can access discounts through the Victorian Energy Upgrades program and rebates through Solar Victoria. Amounts and eligibility change, so check both programs before quoting.
Get Ready for 2027 with Beyond Plumbing Supplies
Get ahead of the changeover demand. Browse the hot water range, or register for a trade account to unlock trade pricing before you order.
Sources
- Securing Victoria's gas supply while slashing energy bills (Premier of Victoria)
- New rules for gas and electric homes in Victoria (AusNet Services)
- AS/NZS 3500.4 Plumbing and drainage: Heated water services
