Victoria's gas hot water rule from 1 March 2027

This is the change most people mean when they search for the "gas hot water ban" in Victoria. It is not a ban on using gas. It is a rule about what you are allowed to install when your current gas hot water system reaches the end of its life. Here is what the Victorian Government and the plumbing regulator actually say, in plain terms.

What exactly does the rule say?

The Victorian Government's page for existing homes puts it in two sentences: "From 1 March 2027, gas hot water systems cannot be installed. If a gas hot water system breaks and cannot be repaired, or needs to be replaced for any other reason, it must be replaced with an electric alternative." (energy.vic.gov.au)

The legal home of the rule is the Plumbing Regulations 2018, as changed by the Building and Plumbing Amendment Regulations 2025. The plumbing regulator, the Building and Plumbing Commission (BPC, formerly the Victorian Building Authority), describes it as applying when an existing reticulated (mains) gas hot water system in a house or apartment is replaced: it must generally not be replaced with another mains gas system unless an exemption applies (BPC, August 2026).

Gas pool heaters are caught too. The Victorian Energy Upgrades page says a gas water heater, "including a gas swimming pool heater", cannot be replaced with another mains gas water heater from 1 March 2027 (VEU hot water discounts).

Do I have to replace my gas hot water system now?

No. If your gas system works, you can keep using it. The BPC says there is "no requirement to replace existing gas cooking, hot water or space heating appliances in homes" and that existing mains gas hot water systems "can continue to be repaired and maintained as usual". Homes already connected to gas can stay connected (energy.vic.gov.au).

The rule only bites at the point of replacement. That usually means a failure, such as a leaking tank, but the wording also covers replacing a working system "for any other reason", for example during a renovation. My guide to what to do when gas hot water fails covers the repair or replace question.

Who does the rule apply to?

• Owner-occupiers of existing homes. The government lists "current owner-occupiers, plumbers, electricians" as the people affected (energy.vic.gov.au).
• Houses and apartments. The BPC describes it as covering Class 1 and Class 2 buildings, which in building code terms are houses, townhouses and apartments.
• Rentals, with a stricter version. From the same date, rental providers must replace a failed gas or electric system with an efficient heat pump or electric-boosted solar system. See the rules for renters and landlords.
• Not existing commercial buildings. The BPC says the changes "will not apply to Class 8 process buildings, such as industrial or agricultural facilities, or existing commercial buildings".

What are the exemptions?

The BPC lists these exemptions in the Plumbing Regulations, where a like-for-like gas replacement can still be allowed:

• A temporary disconnection of the existing gas hot water system.
• The existing gas system does not rely on electricity and has no electricity connection (for example a storage unit with a pilot light).
• The work would need an alteration to the main switchboard or a distribution board.
• The work would need the electricity network upgraded beyond a basic or standard connection.
• There is not enough internal space, or the outdoor space is unsuitable.
• The hot water comes from a centralised gas system (common in apartment blocks), or another regulatory constraint applies.

An earlier government factsheet from August 2025 also mentions heritage overlays that make an electric appliance unlawful (DEECA factsheet). Plumbers have to keep evidence for any exemption they rely on, such as photos, measurements and the manufacturer's installation requirements.

What about LPG or bottled gas?

The rule is about mains gas. The government's August 2025 factsheet says appliances that use LPG or bottled gas "are not impacted by the Building Electrification Regulations", and the BPC wording refers to reticulated gas throughout. The plain-English page for owners simply says "gas hot water systems cannot be installed", so if you are on LPG, confirm the position for your home with a licensed plumber before you buy.

What can I replace a gas system with?

The government says the replacement must be "an electric alternative". It names heat pumps and electric-boosted solar hot water as the efficient options that "can outperform gas equivalents", and Solar Victoria describes the requirement as upgrading to "an efficient electric alternative, like a heat pump" (Solar Victoria).

The pages for owner-occupiers that I read do not set an efficiency minimum. The rental rules do: a rental must get a heat pump or electric-boosted solar system that meets set performance tables. If you are an owner thinking about a plain electric storage tank, ask your plumber whether it complies for your home, and look at the running costs first. A standard electric tank uses far more power than a heat pump. My heat pump vs electric storage page sets out the difference.

When does each change start?

How much will the switch cost?

The Victorian Energy Upgrades buyers guide says that before any incentives, the installed cost of water heaters "can range from $2,500 to $7,500" (VEU buyers guide). Three discounts can come off that for a heat pump replacing gas:

• Federal STCs, usually taken off the price by the installer. See how STCs work.
• VEU discount of up to $560 when a heat pump replaces gas, through an accredited provider.
• Solar Homes rebate of up to $1,000 ($1,400 for an eligible locally made product) for eligible owner-occupiers.

The government puts the combined VEU and Solar Homes saving at up to $1,560, or $1,960 with a locally made product. Under VEU you must still pay at least $200. Full details are on the Victorian rebates page.

On running costs, the government says replacing gas hot water with electric "saves around $400 a year" (energy.vic.gov.au), and its 2025 factsheet puts the figure at up to $590 a year with solar. Those are the government's averages, not a promise for your home. My heat pump vs gas page explains what drives the number up or down.

Should I switch before my gas system fails?

There is no requirement to, but there are reasons people do:

• You get to shop around. A failed system usually means a cold shower and a rushed decision. Planning ahead gives time to compare quotes, sizes and installers.
• Rebates are limited. Solar Homes rebates are released in batches. Solar Victoria showed 684 hot water rebates left in the current release on 2 November 2026.
• Solar Homes needs a system at least 3 years old. A newer gas system won't qualify, which is a reason to keep it going.
• Free midday power. Since 1 October 2026 Victoria's Midday Power Saver offers no-cost electricity from 11am to 2pm on that plan, and the government names electric water heaters as a load to shift into that window (energy.vic.gov.au). See running a heat pump on free and off-peak power.

Reasons to wait: your gas system is young, it works well, or your home has a likely exemption such as a switchboard or space problem that a plumber should look at first.

Who checks that the rule is followed?

Hot water replacement is plumbing work, so it must be done by a plumber licensed with the BPC. Removing a gas water heater counts as gasfitting work, and the plumber must issue a compliance certificate for heat pump installations above the monetary threshold (BPC heat pump installations). The official pages I read do not spell out a penalty for a household that breaches the 1 March 2027 rule, so I don't quote one.

More on the 2027 rule

• When gas hot water failsYour gas hot water system has failed in Victoria: what now?What counts as end of life for a gas hot water system under Victoria's rules, when repair is still allowed, and how to replace it quickly with a heat pump.
• Renters and landlordsVictoria's hot water rules for renters and landlordsWhat Victoria's electrification and rental minimum standards mean for hot water in rented homes, who pays, and what renters can ask for.