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Vic Gas Ban What you need to know and when it starts
What is the gas ban?
The Victorian government call it “Electrification and Energy Efficiency Standards.” To be clearer, in 2027 there will be a ban on the use of (and connections for) gas in new homes. There will also be a ban on installing replacement gas powered hot water systems in existing buildings with anything other than an electric system.
New builds – Start date 1 January 2027
From 1 January 2027 all new commercial and residential buildings (except industrial and agricultural buildings) must be built as all-electric. No gas connection is permitted. A relevant building surveyor will be prohibited from issuing a building permit for any new residential building that is not all-electric.
Existing buildings owner occupied – Start date 1 March 2027
After HIA’s advocacy, some of the proposed restrictions on installing replacement gas appliances in existing homes have been removed. The restrictions now only apply to the replacement of gas hot water systems once they have reached end of life.
This means that:
- Existing gas hot water systems can be repaired and maintained but any replacement must be electric; and
- Existing gas cooking and heating systems can also be replaced with new gas, though electrification is encouraged.
Transitional arrangement
The government has clarified that the Section 10 of the Building Act exemption from the prohibition on issuing a building permit is applicable. This means that where the relevant building surveyor is satisfied and certifies in writing that substantial progress was made before the new regulations come into effect, they may still issue a building permit despite the permit being issued after the new restrictions come into effect.
This means that projects signed up before 2027 may still be able to have a gas connection if the building surveyor decides Section 10 applies.
Incentives
The Victorian government has a number of incentives to encourage and support the replacement of gas systems with electric. You may wish to make sure your clients are aware of these incentives.
To find out more, contact HIA's Contracts and Compliance team
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