What you need to know about Victoria’s gas ban

The short version: new homes that need planning permits have been all-electric since 1 January 2024, and from 1 January 2027 the all-electric requirement broadens to virtually all new residential builds and most new commercial buildings, with sensible carve-outs.
Meanwhile, existing homes are not being forced off gas overnight, but there are new end-of-life rules coming for certain appliances.

What’s already in place (since 1 January 2024)

Under Amendment VC250 to the Victoria Planning Provisions, if you lodged a planning permit application on or after 1 January 2024 for a new dwelling, new apartment development, or a residential subdivision, the development cannot be connected to reticulated natural gas.

Put simply: new permitted homes must be all-electric. LPG (bottled gas) is unaffected, and the rule doesn’t apply to renovations or extensions of existing homes. There are some important boundary cases worth highlighting:

• Small second dwellings (the “granny flat” style) are included in the no-gas rule and cannot connect to reticulated gas. 
• Subdivisions approved from 1 January 2024 carry conditions that prohibit future dwellings on those lots from connecting to reticulated gas—even if those dwellings wouldn’t otherwise need a permit.

What changes from 2027:

1. All-electric standard expands (1 January 2027)

All new residential buildings (not just those with planning permits) must be built all-electric. Most new commercial buildings must also be all-electric; exemptions remain for genuinely heavy-use categories like industrial, manufacturing and agricultural buildings.

2. End-of-life replacements (from 1 March 2027)

When an existing gas hot water system in a home reaches end-of-life, it must be replaced with an efficient electric alternative (for example, a heat-pump unit).
There’s no ban on repairing a broken gas unit; the obligation applies when the system is being replaced at end-of-life.
For rental properties, a suite of minimum energy-efficiency standards also applies from this date (think reverse-cycle air conditioning for main living areas, insulation upgrades where there is none, draught-sealing and efficient showerheads).
Equally important are the things not changing: existing owner-occupiers are not being compelled to rip out working gas cooktops or heaters, and LPG use is unchanged.

Why the change?

Victoria is Australia’s most gas-reliant state. Around 80% of Victorian homes are connected to gas, and the gas sector contributes about 17% of the state’s emissions—so new connections would lock in infrastructure that conflicts with Victoria’s net-zero trajectory. 

The state also builds over 50,000 new homes each year, historically with roughly 40,000 connecting to the gas network; stopping new connections curbs demand growth and avoids under-used pipes down the track.
There’s also an energy-security angle. Government modelling suggests that cutting household gas demand helps reserve dwindling Bass Strait gas for industries that truly need it, helping avoid shortfalls flagged by AEMO later this decade.

Will going all-electric save money?

For new homes built to the 2027 all-electric standard, the government estimates about $880 per year in bill savings—or around $1,820 per year if you add rooftop solar.

If you’re replacing hot water at end-of-life, the government estimates about $330 per year in savings with an efficient electric unit, or $520 per year with solar.

These are broad averages, and your results will depend on your home’s size, climate zone, appliance choices and how you use them—but the direction of travel is consistent with what households report once they swap to efficient heat pumps and induction.

What if you already have gas?

If you’re in an existing home, nothing forces you to disconnect. You can keep using gas appliances, repair them when they break, and plan your transition on a normal replacement cycle.

The key policy change you’ll feel sooner is the end-of-life replacement rule for hot water from March 2027; rentals will also see minimum standards phased in at new leases from the same date.

Practical steps for homeowners and builders

• Design electric from day one. For new builds, specify reverse-cycle heat pumps for space heating/cooling, a heat-pump hot water system, and an induction cooktop. This trio delivers excellent comfort and low running costs—and it’s compatible with future solar or battery upgrades.
• Plan your switchboard and supply. Talk to your designer/electrician about spare circuit capacity and whether three-phase supply makes sense (especially if you want fast EV charging or a larger heat-pump system).
• Make solar do more. Size PV and the inverter to cover daytime appliance loads; many households time their heat-pump hot water to run in the middle of the day to soak up excess solar production.
• Know your permit timing. If your planning permit was lodged before 1 January 2024, the 2024 gas-connection prohibition doesn’t apply to that development (including subsequent section-72 amendments tied to the same original permit). Check with your council or planner if you’re unsure.
• Understand the edge cases. Small second dwellings cannot connect to reticulated gas, regardless of permitting; LPG remains allowed. For new subdivisions approved from 2024, lots will carry conditions prohibiting future reticulated gas connections for dwellings.

What this means for renters and rental providers

From 1 March 2027, minimum energy-efficiency standards step up. At a new lease, main living areas must have efficient electric cooling (reverse-cycle will satisfy both heating and cooling requirements).

There are also requirements for insulation where none exists, draught-sealing, efficient showerheads, and end-of-life electric replacements for gas hot water and gas heaters—supported by discounts through the Victorian Energy Upgrades program and other rebates.

Exemptions apply where costs would be unreasonable or space constraints exist.

Common questions

Does this apply everywhere in Victoria?
Yes. VC250 is embedded in all planning schemes and applies to permit applications lodged on or after 1 January 2024; the 2027 rules are state-wide too.
Can I still use my gas BBQ?
Yes. LPG use is unchanged by these rules.
What about apartments and big developments?
New apartment developments with permit applications from 2024 are all-electric under VC250. From 2027, the broader all-electric standard applies to new residential buildings generally, with the noted commercial exemptions.

The bottom line

• Right now: New homes (and certain subdivisions) with permits lodged from 1 January 2024 cannot connect to reticulated gas.
• From 1 January 2027: All new residential and most new commercial buildings must be all-electric.
• From 1 March 2027: End-of-life gas hot water must be replaced with efficient electric; rental homes step up to stronger efficiency standards.
• Existing homes aren’t being ripped off gas today—but planning for a staged, efficient switch will future-proof your bills and compliance.