Victoria's 2027 gas hot water rule explained for Warragul homes
What Victoria's 1 March 2027 gas hot water replacement rule means for Warragul owners and renters, what it leaves alone, and the open question on bottled LPG.
From 1 March 2027, when a gas water heater in an existing Victorian home reaches the end of its life, it has to be replaced with an electric system under the Plumbing Regulations 2018. A gas unit that can still be repaired can keep being repaired, and gas cooktops, gas heaters and existing gas connections are not affected. Separate rules make new homes all electric from 1 January 2027 and set minimum standards for rental homes from 1 March 2027.
This guide covers what the law says and who it touches. It does not cover choosing or installing a replacement; for that, see the links further down. Enquiries sent through this site go to independent local plumbers, and those businesses give their own advice and prices.
What exactly changes on 1 March 2027?
The Victorian Government’s electrification and efficiency standards page lists three changes, each under a different set of regulations:
| Change | Starts | Regulations | Who it affects |
|---|---|---|---|
| New homes and most new commercial buildings must be all electric | 1 January 2027 | Building Regulations 2018 | Builders, buyers of new homes, surveyors |
| End-of-life gas water heaters in existing homes replaced with electric | 1 March 2027 | Plumbing Regulations 2018 | Owner-occupiers, plumbers, electricians |
| Minimum energy efficiency standards for rental homes | Phased in from 1 March 2027 | Residential Tenancies Regulations 2021 | Rental providers, renters, agents |
The Victorian Energy Upgrades page puts the existing-home rule in plain terms: from 1 March 2027, if a gas water heater, including a gas swimming pool heater, needs replacing in an existing home, it cannot be replaced with another mains gas water heater and must be replaced with an electric system. The standards page adds that a range of exemptions exist where electrification or compliance would be impractical or costly, so a plumber should confirm whether any apply to your home.
When is a gas water heater at the end of its life?
AusNet Services, a Victorian gas distributor, says on its page about the new rules that the rule applies when a gas water heater reaches end of life and cannot be repaired or safely maintained. A leaking tank, a corroded flue or a unit whose parts are no longer available are the kinds of faults a plumber weighs up. A failed thermocouple or pilot assembly on an otherwise sound unit is often a repair, and repairs remain allowed after the start date.
That makes the plumber’s assessment important. If you are told a gas unit cannot be fixed, ask for the reason in writing, with the fault and the part involved. A second opinion is reasonable on an expensive call.
What stays the same?
Plenty of gas use is untouched by the hot water rule. According to AusNet:
- Existing gas cooktops and heaters in good working order can stay and can continue to be repaired.
- Owners who choose to can replace a gas cooktop or a gas heater with another gas model.
- Existing homes keep their gas connection, and renovators can keep using it.
- The hot water rule does not apply to apartment buildings with centralised hot water systems.
AusNet also says that a home rebuilt from scratch cannot reconnect to gas, and that after 1 January 2027 new homes will not be eligible for gas connections, although a home with a building permit approved before 31 December 2026 may still be able to connect.
What about bottled LPG in rural homes?
This is the part of the rule that is not settled for a rural Baw Baw property. The Victorian Energy Upgrades wording refers to replacing a gas water heater with another mains gas water heater. AusNet’s page says LPG (bottled gas) can still be used for barbeques or in regional homes for hot water and cooking. Neither source is the regulation itself.
If your home is off the mains gas network and heats water from LPG cylinders or a bulk tank, do not assume you are exempt and do not assume you are caught. Ask a licensed plumber or gasfitter to confirm how the Plumbing Regulations 2018 apply to an LPG water heater at your address before you plan a like-for-like swap. The gas fitting service page covers LPG appliance connections and the licence classes involved.
What does the rule mean for renters and rental providers?
The rental standards come under the Residential Tenancies Regulations 2021 and are being phased in from 1 March 2027. The Victorian Energy Upgrades page says that for rental homes, if a water heater stops working and cannot be repaired after that date, it must be replaced with an efficient electric water heater, such as a heat pump or an electric-boosted solar system. That applies to the type of replacement, whatever fuel the old unit used.
AusNet adds that rental providers are not required to replace gas cooktops.
For renters, the practical point is to report a failing hot water unit to the rental provider promptly and in writing, and to know that a replacement after the start date has to meet the new standard.
What about new homes in Warragul and Drouin estates?
New homes across Victoria must be built all electric from 1 January 2027 under the Building Regulations 2018. AusNet says building permits will not include gas appliances or piping. For anyone in Warragul or Drouin signing a house-and-land contract now, this matters. Check the permit date and the plans before assuming a home will have gas cooking or gas hot water. The Trafalgar area page covers how these rules touch a town further along the freeway.
How does this change what you should do today?
Most households do not need to do anything before their current unit wears out. Planning ahead does help, because a sudden failure in July leaves little time to compare options. Things worth doing now:
- Photograph the data plate on your gas water heater and note its age.
- Ask a plumber at the next service whether the unit is close to the end of its life.
- Look at where an electric storage or heat pump unit could go, and check your switchboard.
- Read the program pages for Solar Victoria and Victorian Energy Upgrades, since rebates and discounts depend on doing steps in the right order. Our hot water replacement checklist sets those steps out.
- If the house is a rental, talk to the rental provider before a failure, not after.
If you would like a plumber’s view on how long your current unit has left, you can ask for a gas water heater assessment and include the data plate photo.
Which electric options replace a gas unit?
The VEU page names heat pumps and electric-boosted solar for rentals, and electric storage units are the other common choice. Each has its own running cost, space need and noise. The heat pump hot water page covers that option in detail, including how the state programs reduce the up-front cost. The hot water systems page covers repairs and like-for-like electric replacements.
Who can do the replacement work?
Disconnecting and capping a gas water heater is gasfitting work, and installing the new unit is plumbing work. Both are licensed in Victoria by the Building and Plumbing Commission. Installing or replacing a Type A gas appliance needs a plumbing compliance certificate at any value, and so does consumer gas piping work. The compliance certificate guide explains what that document is. You can check any plumber’s licence classes on the BPC’s public register before agreeing to the job.
Next step
Tell a plumber what you have and what you want to know: the brand and age of the gas water heater from its data plate, whether it runs on mains gas or LPG cylinders, whether the home is owner-occupied or rented, and whether the unit is still working. Then send a gas hot water rule enquiry with your unit details, and an independent licensed plumber can tell you whether repair or electric replacement fits your situation.
Frequently asked questions
- Do I have to remove my working gas hot water system before 2027?
No. The rule applies when a gas water heater in an existing home reaches the end of its life and cannot be repaired or safely maintained. A working unit can stay, and repairs remain allowed. The replacement requirement only applies when the unit has to be replaced from 1 March 2027.
- Can I still get a new gas cooktop after March 2027?
AusNet Services says existing gas cooktops and heaters in good working order can be kept and repaired, and owners can choose to replace them with gas models. The 1 March 2027 rule is about gas water heaters in existing homes, not cooking or space heating appliances.
- Does the 2027 rule apply to LPG hot water on a farm?
That is not settled from the public guidance. The Victorian Energy Upgrades page refers to mains gas, and AusNet says LPG can still be used in regional homes for hot water, but neither is the regulation. Ask a licensed plumber or gasfitter to check how the Plumbing Regulations 2018 apply to your LPG unit before planning a like-for-like swap.
- What must a rental provider install if the hot water fails?
Under the rental minimum standards being phased in from 1 March 2027, a water heater in a rental home that stops working and cannot be repaired must be replaced with an efficient electric unit, such as a heat pump or electric-boosted solar system, according to the Victorian Energy Upgrades page.
- Will a new house in a Drouin or Warragul estate have gas?
New homes must be built all electric from 1 January 2027 under the Building Regulations 2018. AusNet says a home with a building permit approved before 31 December 2026 may still be able to connect to gas. Check the permit date and the plans with the builder before you assume gas is included.