Major update for state's gas plan
Victoria has softened its gas phase-out plan, allowing owner-occupiers to continue using gas heaters and confirming that businesses can keep gas running in existing commercial buildings.
The state will still push ahead with reforms that will make all new homes and most new commercial buildings electric only from 2027.
Premier Jacinta Allan said the updated plan will help households save on energy bills, protect local jobs and secure gas supplies for industries that still rely on it.
'Families will pay less on their energy bills, industry will get the gas it needs – and Victorian jobs are protected,' she said.
'It's good for industry, workers, renters and families – we're on their side.'
The Victorian government introduced a range of measures in 2023 aimed at phasing out gas.'
Ms Allan said the revised approach was shaped by consultation with industry and other stakeholders. Jacinta Allan said the changes will help households save on energy bills while also protecting local jobs. NewsWire / Andrew Henshaw Credit: News Corp Australia
Under the revised rules, gas heating remains allowed for owner-occupiers, and gas hot water systems can still be repaired if they break down or reinstalled during renovations.
But from March 2027, when a gas hot water system reaches the end of its life, it must be replaced with an electric version.
Gas cooking in existing homes is also staying for now.
From January 2027, all new residential and most commercial buildings will be required to go electric, including granny flats, sheds and other structures that previously didn't need a planning permit.
Buildings used for industrial, manufacturing or agricultural purposes will be exempt.
Victoria's plan is also targeting rental homes, which have some of the state's worst energy efficiency.
New minimum standards will require landlords to install reverse-cycle air conditioners to replace broken gas heaters, upgrade ceiling insulation where it's missing, seal draughts and install water efficient showerheads.
Consumer Affairs Minister Nick Staikos said the changes will make rental homes safer and cheaper to run.
'This is an important step towards making rental properties safer, more comfortable and more energy efficient – giving renters peace of mind for both winter and summer and driving down their bills,' he said.
The Victorian Council of Social Service welcomed the announcement, saying it would bring relief to renters facing high energy costs.
'This is a major win for renters in Victoria at a time when they really need it,' said VCOSS CEO Juanita Pope. Rental and climate advocates have welcomed the move away from gas. NewsWire/ Monique Harmer Credit: News Corp Australia
'We know that the rental market includes some of the worst quality homes in Victoria, which compounds the effects of other challenges faced by renters during a cost-of-living crisis,'
'We also know there is a direct connection between poor quality rental properties and poor health outcomes,'
'These standards will literally save lives.'
Climate groups also praised the move away from gas, pointing to both cost and health benefits.
'Gas is enormously expensive and polluting,' said Climate Council CEO Amanda McKenzie.
'This policy showcases sensible leadership from the Victorian government to both cut Victorian household's energy bills and tackle climate pollution.
'Victorian houses will become cleaner and healthier under this policy.'
McKenzie said the decision confirmed that 'gas is on the way out in Victoria' and urged other states to follow suit.
She also acknowledged the Victorian Greens role in supporting the reforms.
The Energy Users' Association of Australia, which represents commercial and industrial energy users, said the announcement reflected a more realistic path to net zero.
'Navigating the road to net zero is proving to be harder and more expensive than initially thought,' said EUAA CEO Andrew Richards.
'We thank the Victorian government for listening to stakeholders and being responsive to the challenges being faced by energy users that have led to today's pragmatic announcement.'
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