Everything you need to know about Victoria’s new gas rules
The Allan government has been forced into another backdown in its push to ween households off gas. So what are the new rules for homeowners and home builders? Here’s everything you need to know.
Victoria
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The Allan government wants to slash household and business gas use as part of its net zero emissions strategy.
It wants more buildings to go all-electric, saying gas is running out and the shift will lower household bills.
But after a growing backlash to its plan to fast-track this electrification push, the government has now watered down its energy rules.
So what is the state of play? Here’s what you need to know.
What is Victoria’s net zero plan?
The state Labor government has set emissions reduction targets of 75 to 80 per cent by 2035 and “net zero” by 2045.
This effectively means the amount of greenhouse gas emissions produced by human activity in the state in 2045 will be offset by the same amount taken out of the atmosphere.
To do this, the government wants homes and businesses to transition away from fossil fuels such as coal and gas and use new energy sources such as solar and wind.
Does this mean gas will be banned?
All new homes and residential subdivisions that require a planning permit are banned from hooking up to gas networks.
Under tougher rules announced on Tuesday, this has been extended to any new building from 2027, not just those requiring a planning permit.
This change now takes in granny flats under 60sq m, as well as sheds and garages.
It also applies to commercial buildings.
Existing houses are not banned from being on the gas network, but they face new rules on what appliances they can use when old gas-fired models reach their end of life.
What if I have an existing home?
The Allan government in 2023 moved to introduce rules that would phase out gas cooktops, heaters and hot water systems from existing homes.
The idea was to force homeowners to replace gas appliances with electric ones as the gas model comes to the end of its working life.
However, last year Premier Jacinta Allan backflipped and said gas cooktops would not be included in the new rules.
On Tuesday, the rules were softened again, to save gas heaters from being forcibly replaced.
Hot water systems are still included, however, and from 2027 will have to be replaced by efficient electric models such as heat pumps if they can’t be repaired.
So I can keep cooking with gas?
Yes, existing homes will not be forced to get rid of gas cooktops when they expire, and households can continue to replace old cooktops with new ones.
If, however, you are building a new home or commercial premise you will not be able to connect to the gas network from 2027.
What about barbecues?
Barbecues will not be impacted because LPG bottles can still be used.
What if I rent?
Landlords face tougher rules — the government has announced that they will have to replace gas heaters at their end of life with reverse-cycle air conditioners in properties they rent out.
This is part of a suite of new regulations for rental properties that also force landlords to install better insulation and efficient showerheads, which the government says will save renters money on bills.
Are there exemptions?
Yes. If the cost of installing new electric systems is too much, then households can apply to be exempt from the electrification rules.
While this is not set at a dollar figure, it is likely that if switchboards require major upgrades or there is no space for the appliances required, then exemptions could be granted.
This applies to both owner-occupier and rental properties.
What if I’m renovating?
Existing homes will not be forced to switch off gas when renovating, but the government will encourage them to use that chance to do so, arguing it would save them money on bills in the long run.
If people want to temporarily remove gas appliances such as for heating and hot water, and later put them back in once renovations are complete, they will be allowed to under the new rules.
When do the new rules apply?
Rules that banned new homes requiring a planning permit from connecting to gas began at the start of last year.
The rules that ban all new homes and commercial premises from connecting to gas — even if they don’t require a planning permit — are scheduled to begin on January 1, 2027.
The new rules for landlords and owner occupiers that relate to replacing expired appliances begin at the start of March 2027.
How much will it cost to switch?
The cost will be made up of several factors, including the complexity of new appliance installations, and how difficult deinstallation of gas is.
Estimates vary from several thousands of dollars, to tens of thousands of dollars.
The Victorian Chamber of Commerce and Industry says the total cost can be $30,000 for some homes if mains need to be upgraded.
Some rebates apply to efficient electric heaters and hot water systems, to reduce costs.
The government says many electric models are a similar price to gas models, which neutralises the purchase costs of appliances.
It say bills will also reduce by about $1000 a year, or up to $2200 for those who have solar, once homes are electrified.
Is there a gas shortage in Victoria?
Market operators say there could be some shortfalls in Victoria from 2029, due to supplies drying up in Bass Strait and other gas-producing regions.
At that time, Yallourn power station will be shut down, meaning more gas would be used to fire power stations needed when the wind is low and sun isn’t shining.
About 70 per cent of homes use gas, and reducing that load will allow the gas that is left to be used by industry and manufacturers that can’t transition to electricity.
The government has recently approved an import terminal to bring gas in to the state if required, during this period.
Originally published as Everything you need to know about Victoria’s new gas rules
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