Victoria’s 2027 all-electric mandate: what it means for your property
Gas is being phased out in stages, not overnight. Here’s exactly what changes for new builds, existing homes and rental properties — and how to plan the switch before a deadline or a breakdown forces the decision for you.
Victoria is moving off fossil gas — on a fixed timetable
Victoria’s Gas Substitution Roadmap is the state government’s long-term plan to cut reliance on fossil gas through energy efficiency, electrification and renewable gases like biomethane and hydrogen.[1] For most property owners, the headline is simple: electricity is becoming the default for heating, hot water and cooking, while gas infrastructure is steadily wound back rather than banned outright.
That shift is already under way. New homes needing a planning permit have had to be all-electric since January 2024, and new gas connections now generally cost the property owner the full upfront price. The next major milestones land in 2027 — and they apply differently depending on whether you’re building new, living in an existing home, or renting a property out.
Nothing forces you to remove a working gas appliance today. But from 2027, new buildings can’t connect to mains gas, and when a gas hot-water system or rental heater dies, its replacement must be electric.
The roadmap so far — and what’s still to come
Some of these changes already apply. The ones shaded amber are still ahead of us.
What actually changes — for your kind of property
The rules aren’t one-size-fits-all. Pick the tab that matches your situation.
Design gas out from day one
From 1 January 2027, new residential buildings and most new commercial buildings must be designed without a reticulated gas connection — a building surveyor won’t be able to issue a permit for a mains-gas home after that date. Small second dwellings have already been barred from connecting since December 2023, regardless of whether a planning permit is needed.
For developers, that means gas has to come off the table at the design stage, not as a last-minute swap: appliance schedules, electrical capacity, hot-water design and mechanical services all need to be reviewed before permits are lodged. A well-designed all-electric home typically includes:
Reverse-cycle heating & cooling
Induction cooking
Solar PV
Battery storage
Smart energy management
Switchboard sized for simultaneous loads
Reticulated or bottled LPG remains an option for both new and existing dwellings — the mandate targets mains natural gas.
Nothing forces you to act today — but plan before the next failure
Existing homeowners aren’t required to remove gas cooking or gas space heating, and any safe, compliant gas appliance can keep running. The one hard deadline is gas hot water: from 1 March 2027, a system that fails and can’t reasonably be repaired must be replaced with an electric alternative, such as a heat pump. Exemptions can apply where electrification is genuinely impractical.
The risk isn’t sudden non-compliance — it’s an unplanned, rushed replacement. Before your current system fails, it’s worth checking:
- Available electrical capacity at the switchboard
- A suitable outdoor or well-ventilated spot for a heat pump unit
- Pipework, plumbing and drainage changes needed
- Solar compatibility and daytime-run scheduling
- Current VEU rebates and Victorian Energy Upgrades discounts
Rental providers face the earliest hard deadlines
Landlords have the most layered set of obligations. From 1 March 2027, a failed gas hot-water or heating appliance in a rental must be replaced with a heat pump hot water system or an efficient reverse-cycle air conditioner in the main living area. New leases from that date also need 4-star showerheads, efficient cooling, and R5.0 ceiling insulation wherever none currently exists.
Draught-proofing on external doors, windows and wall vents follows at the start of a new lease from 1 July 2027. And by 1 July 2030, every rental property — no matter its lease status — must have fixed, efficient electric cooling installed in the main living area.
Because most of these triggers are tied to a lease event or an appliance failure rather than a single hard date, a property-by-property upgrade plan is far more manageable than reacting to each event as it happens.
You don’t need to electrify everything in one project
A staged approach spreads the cost and reduces disruption. Most properties move through the same four stages.
| Stage | Focus | Typical actions |
|---|---|---|
| 1. Assess | Understand the building | Switchboard capacity, appliance age, insulation, solar potential, body-corporate or heritage limits |
| 2. Replace | Swap the highest-impact equipment | Heat pump hot water first, then reverse-cycle heating & cooling in place of separate gas and electric systems |
| 3. Improve | Stop the building wasting energy | Ceiling & wall insulation, draught seals, glazing, external shading — so new equipment can be sized smaller |
| 4. Optimise | Add generation & smart control | Solar PV, battery storage, and shifting usage toward daytime or off-peak tariffs |
Hot water is usually the most practical starting point: a heat pump water heater can use a fraction of the electricity of a conventional resistance system, and it’s the one component of the roadmap every existing home will eventually need to address.
What going all-electric could save you
Figures are Victorian Government modelling for a typical household — yours will vary with size, tariff and usage.
| Scenario | Without solar | With solar |
|---|---|---|
| Existing home converting to all-electric | ≈ $1,900 / yr | ≈ $2,230 / yr |
| New all-electric home vs. new dual-fuel home | ≈ $990 / yr | ≈ $1,920 / yr |
Where property owners typically trip up
Common compliance risks
- Installing a new gas hot-water system shortly before the 2027 replacement rule takes effect
- Designing a new build with switchboard capacity too tight for heating, hot water and cooking together
- Assuming a renovation is treated the same as a brand-new build
- Overlooking rental-specific efficiency requirements at lease renewal
- Selecting equipment without checking VEU eligibility or installer accreditation
Where to check if you’re unsure
- Whether the project is a new build, alteration, or subdivision — the rules treat each differently
- Whether the connection involves reticulated natural gas or LPG — they’re not treated the same
- Whether an exemption genuinely applies to your building type
- Your local council or building surveyor, for anything permit-related
- A qualified compliance professional, if the classification is unclear
A future-proofing checklist
The right time to plan is before a gas appliance fails, before a permit is lodged, or before a lease renewal creates pressure.
- Confirm whether your property is a new build, existing building, renovation or subdivision
- Check whether the project involves natural gas or LPG — the rules aren’t identical
- Audit existing gas appliances: age, condition, and likely replacement date
- Review switchboard capacity before planning electric hot water, heating or cooking
- Prioritise heat pump hot water and reverse-cycle heating where suitable
- Improve insulation and draught control before upsizing any mechanical system
- Check current VEU discounts and Solar Homes incentives before installing
- Review rental-property obligations ahead of your next lease renewal
Frequently asked questions
Do I have to rip out my gas stove or heater right now?
No. Existing homes aren’t required to remove working gas cooktops or space heaters. You can keep using them as long as they’re safe and compliant — the 2027 rules target new buildings and failed gas hot-water systems, not appliances that still work.
What happens if my gas hot water system fails before or after March 2027?
From 1 March 2027, a gas hot-water unit that fails and can’t reasonably be repaired must be replaced with an electric alternative, such as a heat pump system. Some exemptions apply where electrification is impractical. Planning ahead of a failure gives you time to check electrical capacity, placement and available rebates.
Can I still connect a new home to gas in Victoria?
New homes needing a planning permit have generally had to be all-electric since January 2024, extending to all new homes and most new commercial buildings from 1 January 2027. Reticulated or bottled LPG remains available, and new gas connections now generally require the property owner to cover the full upfront cost.
What do landlords need to do before 2027?
From 1 March 2027, a failed gas heating or hot water system in a rental must be replaced with an efficient electric system, and new leases must include 4-star showerheads, efficient cooling and R5.0 ceiling insulation where none exists. Draught-proofing follows from 1 July 2027, and by 1 July 2030 every rental — regardless of lease status — needs efficient electric cooling installed.
How much could I actually save by going all-electric?
Government modelling estimates an existing home saves around $1,900 a year without solar, or about $2,230 with solar. A new all-electric home saves roughly $990 a year without solar, or around $1,920 with solar, versus an equivalent dual-fuel home. Actual savings depend on your property and usage.
Are rebates available for switching to a heat pump hot water system?
Yes — the Victorian Energy Upgrades (VEU) program offers discounts on heat pump hot water systems, reverse-cycle heating and cooling, and other efficiency upgrades. As a VEU Accredited Person, Glow Green can check your eligibility and handle the certificate paperwork as part of installation.
What if my building genuinely can’t be electrified?
Exemptions can apply where compliance is impractical — for example, apartments with shared ceiling space, or centralised heating and hot water systems. If your building’s classification or eligibility is unclear, confirm the position with your council, building surveyor or a qualified compliance professional rather than assuming an exemption applies.
Sources
This page is based on current Victorian Government guidance. Rules, exemptions and rebates can change — always check the source directly for the latest position.
This article is general information only and does not replace advice from a Victorian building surveyor, plumber, electrician, local council or other qualified professional. Regulations, exemptions and rebates may change after publication.
Not sure where your property stands?
Glow Green is a VEU Accredited Person. We’ll check your eligibility for a heat pump hot water upgrade and handle the rebate paperwork for you.