Allan government’s gas changes ‘crippling’ to new-build restaurant

Planning on building a new restaurant in Victoria? You won’t be connecting it to gas, with the peak hospitality lobby group warning the new rules will cripple the industry.

Any new restaurant built in Victoria from 2027 won’t be cooking with gas under the Allan government’s revamped gas rules.

Restaurant owners have slammed the Allan Government’s new gas policy warning it was a “bombshell” with major repercussions for the hospitality industry.

The Australian Restaurant & Cafe Association (ARCA) has raised significant concern about the Victorian Government’s decision to require all new commercial buildings — with the exception of industrial, manufacturing, and agricultural facilities — to be fully electric from January 1, 2027.

The move will mean all future restaurants, bars, cafes and hospitality venues will need to be fully electric, despite the state government previously saying that gas cooktops would have a place in Victoria’s future.

“This is not just a planning regulation — it’s a bombshell for Victoria’s cafes and restaurants,” said ARCA CEO Wes Lambert.

“Without a comprehensive infrastructure plan, this policy risks crippling new hospitality ventures, stalling development, and pushing up build and fit-out costs for an already stretched industry.”

Premier Jacinta Allan’s government has now twice reworked its gas policy. Picture: Nadir Kinani

The Allan government announced the change on Tuesday when it released its draft plans to electrify buildings in Victoria.

Victoria banned gas installation in new homes with a planning permit in 2024, but has now been extended to any new building from 2027, not just those requiring a planning permit

The all-electric rule for commercial buildings will be a new requirement.

The plan outlines planning changes for residential and commercial buildings in a

move Premier Jacinta Allan said is “good for industry, workers, renters and families.

“We are not just making sure Victoria has the gas it needs – we are reserving it for industry.”

The announcement comes after the state had already backed down on cooktops in 2023, carving out the popular kitchen appliances from a regulatory impact statement.

However, the new rules on commercial buildings do not provide exemptions for hospitality, meaning gas will be phased out by stealth in new buildings.

“This is a blunt-force policy that assumes all commercial tenants operate in the same way,” Mr Lambert said.

“But hospitality isn’t an office tower — it’s energy-intensive, high-risk, and customer-facing.”

Restaurateurs have previously said there were benefits of cooking with gas, many businesses’ have also built their brand around using barbecue, high intensity wok cooking, and real flame for preparation.

“We consulted with industry, including the hospitality sector on these changes and our reforms are supported by the sector’s largest representative body the Australian Hotel Association

“The Australian Restaurant & Cafe Association - who are based in NSW - did not make a submission to Victoria’s Building Electrification RIS consultation,” a Victorian government spokesperson said.

Originally published as Allan government’s gas changes ‘crippling’ to new-build restaurant