By Milla Webster
FROM January 1, 2027, major changes are coming to how new homes and buildings in Victoria are powered, following the state government’s decision to phase out new gas connections.
Under the new rules, all new residential and most new commercial buildings must be built as all-electric, with no connection to the gas network permitted. This means gas cooktops, heaters and hot water systems cannot be installed in new builds after that date.
However, existing homes are not being forced off gas. Properties already connected to the gas network can continue using their current appliances, and there are no penalties for keeping working gas systems. Renovations alone do not trigger any requirement to disconnect gas.
The main change for existing households relates to gas hot water systems. Once a gas hot water unit reaches the end of its life after 2027, it must be replaced with an electric alternative, such as a heat pump. Gas cooktops and heaters in existing homes can still be repaired or replaced with gas, although electrification is encouraged.
The policy has drawn criticism from the Liberal and National parties, who argue the changes reduce consumer choice and could increase household costs.
Labor maintains the shift away from gas is aimed at lowering energy bills over time, citing rising gas prices being tied to international markets.
Locally, residents are still trying to understand how the changes will affect them. Seymour real estate agent Janelle Puppa said renters were not overly concerned.
“The main concern you hear is that split systems cost more to run than gas heating,” Ms Puppa said. “For tenants, it’s mostly about comfort.”
She said buyers, particularly investors, were paying closer attention to the age, condition and safety checks of gas appliances.
Ms Puppa said landlords were increasingly opting to replace faulty gas heaters with electric systems.
“If a gas heater fails a safety check, it has to be decommissioned. In those cases, landlords are favouring split systems rather than installing another gas heater.”
Ms Puppa said perceptions around running costs had shifted, with many now believing gas is “as expensive, if not more expensive, than electricity”.
To support households choosing to electrify, programs such as the Victorian Energy Upgrades scheme offer incentives for replacing gas appliances, alongside online tools like the Home Electric Planner.
As 2027 approaches, clarity around costs, timelines and local impacts is likely to remain a key concern for many in the community.