The Victorian Government has just announced a new plan to help households shift off gas – and it’s great news for our health, climate and cost of living.
From 2027, new homes in Victoria won’t be connected to the gas network. Instead, they’ll be fully electric, powered by clean energy and equipped with efficient appliances like reverse-cycle air conditioners and induction cooktops.
This plan is a big step forward, especially for a state that currently relies more on gas in homes than anywhere else in Australia.
So why does this matter?
Because gas is a fossil fuel, and it’s polluting our homes and planet.
Cooking with gas is estimated to be responsible for up to 12% of the burden of childhood asthma in Australia, and the gas industry’s claims about “clean gas” don’t hold up. It’s mostly methane, a potent greenhouse gas that’s making climate change worse.
And the truth is, gas is costing us way more than it should. In 2022, our Switch and Save report found that the average Melbourne household could save around $1,200 a year by going all-electric.
So this plan doesn’t just clean up the air and our climate, it puts money back in people’s pockets too.
What’s in the plan?
The Victorian Government announcement includes:
- Phasing out gas hot water – from March 2027, only efficient electric hot water systems can be installed in Victorian homes. When an existing gas hot water system reaches the end of its useful life, it will have to be replaced with an efficient electric one.
- New buildings to be all-electric – already, new houses that require a planning permit must be all-electric. From January 2027, this will extend to all residential and commercial buildings (with a few logical exceptions, such as large industrial facilities).
- More efficient electric homes for renters and people living in public housing – from March 2027, landlords must begin providing decent insulation, draught-proofing, water saving showerheads, and efficient all-electric appliances for hot water, heating and air conditioning.
- A program to help Victoria’s gas appliance manufacturers upgrade their facilities and reskill their workforce.
These are the smart, coordinated policies we need to cut climate pollution, protect public health, and protect families from the rising cost of living.
Where to from here?
Victoria is leading the way, and it’s time for other states to step up.
We congratulate the Allan Government on this strong move to help Victorians improve their homes and their health. Now we need other governments to follow Victoria’s lead.
