IN a major policy shift, the Victorian Government has backflipped on its earlier gas transition plans, now allowing gas appliances like heaters and cooktops to remain in existing homes — even as it pushes for all-electric new builds from 2027.
The State Government’s new Gas Statement outlines reforms aimed at securing Victoria’s gas supply by reducing household demand and reserving gas for industry. Despite earlier rhetoric against household gas, gas hot water systems can still be repaired or temporarily removed during renovations, and there are no changes to existing gas cooking or heating rules for homeowners.
The announcement is seen as a major shift in the Government’s energy policy in its easing off on restrictions for existing household gas appliances.
By 2035, the reforms are expected to free up 44 petajoules of gas annually, covering 85 per cent of forecast industrial demand. The government has backed these moves with legislation, project approvals, and over $2 billion in new gas exploration and production announcements.
However, from March 2027, gas hot water systems in homes and rentals must be replaced with efficient electric alternatives at end-of-life, supported by rebates and the new SEC Home Electric Planner.
Despite the push to electrify, LPG use and existing gas appliances in homes and commercial buildings remain unaffected — a significant walk-back from the government’s earlier stance.
From 2027, landlords must ensure rental properties meet these standards at the start of a new lease, which includes replacing gas appliances at end-of-life with electric ones. All of the required upgrades will be eligible for discounts and rebates through the Victorian Energy Upgrades program.
