Gas appliance end-of-life tool
From 1 March 2027, Victorian rules change what can replace a gas heater or hot water service once it fails. Answer a few quick questions to see where you stand, your options, and the discounts available.
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This tool provides general guidance only. It is not financial, legal or compliance advice, and it covers Victorian properties only. Regulatory detail is drawn from Consumer Affairs Victoria guidance on the Residential Tenancies Amendment (Minimum Energy Efficiency Standards) Regulations 2025 and from the Department of Energy, Environment and Climate Action; rebate figures are from the Victorian Energy Upgrades and Solar Homes programs. Checked 19 August 2026. VEU discounts are indicative, vary with system size and installer, and are subject to change — only an accredited provider can confirm the discount on your job. Exemptions from the rental standards may apply to your property. Always confirm current requirements before making a decision.
The 2027 rules at a glance
- Rental properties: from 1 March 2027, when a fixed heater or hot water system permanently fails and cannot be repaired, the replacement must be energy-efficient electric. For heating that means a reverse-cycle system rated 2 stars or above, or an efficient electric ducted system. For hot water it means a heat pump or an electric-boosted solar water heater.
- Owner-occupied homes: the electric replacement rule applies to hot water only. There is no requirement to replace gas heating.
- Cooling: rental properties need fixed energy-efficient cooling in the main living area at the start of a new or month-to-month lease from 1 March 2027, and in every rental by 1 July 2030.
- Discounts: every upgrade under the new standards attracts a Victorian Energy Upgrades (VEU) discount, and eligible owner-occupiers can add a Solar Homes hot water rebate.
The standards are set out in the Residential Tenancies Amendment (Minimum Energy Efficiency Standards) Regulations 2025, with guidance published by Consumer Affairs Victoria.
Why act while the appliance still works
The rules are triggered by failure, not by the date. Nothing needs to happen while your appliance is working. But when a gas appliance dies mid-winter, the replacement happens on the installer’s timetable, at emergency prices, with whatever stock is available. After 1 March 2027 the choice of fuel is made for you as well.
Replacing an ageing appliance on your own schedule puts those decisions back in your hands. You pick the system, you claim the discounts, and in a rental you avoid leaving a tenant without heating or hot water while the work is arranged.
Common questions about the 2027 gas appliance rules
Can I still replace a gas heater with another gas heater?
In an owner-occupied home, yes. There is no requirement to replace gas space heating with electric. In a rental property, a gas heater can be replaced like for like while it still works. But from 1 March 2027, once a fixed heater permanently fails and cannot be repaired, the replacement must be an energy-efficient electric heater serving the main living area.
What about gas hot water?
Hot water is stricter. From 1 March 2027 a gas hot water system cannot be replaced with another gas system, in rental properties and owner-occupied homes alike. The compliant replacements are a heat pump water heater or an electric-boosted solar water heater meeting Part B2 of the Plumbing Code of Australia. LPG systems keep a like-for-like allowance.
What counts as an energy-efficient replacement heater?
A non-ducted electric air conditioner or heat pump rated 2 stars or above for heating under GEMS (the Greenhouse and Energy Minimum Standards rating, for the property’s climate area). An electric ducted system also qualifies if it has a Heating Seasonal Performance Factor of 3.2 or above. LPG, wood and hydronic heaters each keep a like-for-like allowance.
Does my rental property need cooling as well?
From 1 March 2027, fixed energy-efficient cooling is required in the main living area at the start of a new lease or when a lease rolls to month-to-month. By 1 July 2030 it is required in every rental property regardless of lease status. A working fixed system of any type, including evaporative, already complies until it fails. A portable air conditioner does not count.
What discounts are available?
Victorian Energy Upgrades (VEU) discounts apply to every upgrade under the new standards: indicatively $630–$1,610 for replacing a gas space heater with a reverse-cycle system, up to $5,530 for a ducted conversion depending on capacity, and up to $560 for a heat pump hot water system. Eligible owner-occupiers can add a Solar Homes hot water rebate of up to $1,400. Amounts vary with system size and installer, and only an accredited provider can confirm the discount on a job.
Are there exemptions?
Yes, where compliance is not possible. Common grounds include apartments with centralised hot water or heating, heritage restrictions and owners corporation rules. The full list sits in Schedule 4 of the Residential Tenancies Amendment (Minimum Energy Efficiency Standards) Regulations 2025. From October 2026, rental providers relying on an exemption need to keep records showing it applies.
Is any of this required before March 2027?
Only the standards already in force. Every rental property must already have a fixed, energy-efficient heater in the main living area. A gas space heater rated under 2 stars, or no fixed heater at all, is below the current minimum standard today, before the 2027 changes arrive.