Accommodation Ohio introduces
With gas supplies on Australia's east coast steadily declining, the Victorian government and the City of Sydney have introduced a series of reforms aimed at transitioning to electrification, primarily targeting residential use of gas.
The Victorian government, via its Victorian Gas Security Statement, announced that from 1 January 2027, all new homes and the majority of new commercial buildings (excluding industrial, manufacturing and agricultural buildings) will be built all-electric. This builds on the existing policy that, from 1 January 2024, all new homes that need a planning permit must be all-electric.
Additionally, starting from 1 March 2027, gas hot water appliances in existing residences will need to be replaced with electric alternatives once they reach the end of their service life. However, existing gas units may still be repaired if they malfunction, and can be temporarily removed and reinstalled during renovation works.
The new reforms come after the Victorian government's earlier proposal that households would be required to replace broken-down gas appliances with electric alternatives as part of its broader electrification agenda. However, in response to public criticism, the government clarified that gas cooktops would be excluded from the initially proposed mandate.
According to the latest announcement, there are still no policies mandating the replacement of existing gas cooking or heating systems with electric alternatives at the end of their service life.
Also under the new Victorian reforms, rental properties will be required to meet higher energy efficiency standards. From 1 March 2027, hot water systems must be replaced with efficient heat pumps at end of life; gas heaters at end of life must be replaced with reverse-cycle air conditioners; shower heads that achieve a minimum 4-star Water Efficiency Labelling and Standards (WELS) rating must be installed at the start of a new lease; minimum R5.0-rated ceiling insulation must be installed at the start of a new lease where there is no ceiling insulation already in place, and draught sealing, including weather seals on all external doors, windows and wall vents, must be installed at the start of a new lease.
In addition to the announcement from the Victorian government, the City of Sydney also announced that any new residential developments in the city will be required to install electric cooktops, ovens and space heating from 1 January 2026.
Additionally, the council has endorsed proposed planning amendments that would require large commercial buildings and hotels to operate fully on electricity by 1 January 2027. The public can have its say on the proposed changes from 30 June to 28 July 2025 via the City of Sydney website.
Across the wider state of New South Wales, the NSW government is working on a Gas Decarbonisation Roadmap, with a pledge to deliver it by late 2026.
