FOR IMMEDIATE RELEASE JUNE 24 2025
THE VICTORIAN GOVERNMENT’S PLAN to help households get off polluting gas and make new homes all-electric from 2027 is a win for our climate, children’s health and cost of living.
Climate Council CEO Amanda McKenzie said: "Gas is enormously expensive and polluting. This policy showcases sensible leadership from the Victorian government to both cut Victorian household’s energy bills and tackle climate pollution.
"Polluting gas in homes is a risk for our health. Cooking with gas is estimated to be responsible for up to 12% of the burden of childhood asthma in Australia. Victorian houses will become cleaner and healthier under this policy.
“Victorian homes still hooked up to polluting gas are paying more than they should for heating, cooking and hot water. Our ‘Switch and Save’ report found Melbourne households could save $1200 per year by junking gas appliances, and gas prices have increased since then. This policy will help Victorians cut their energy bills over time, particularly renters.
“This move confirms gas is on the way out in Victoria. The future for Victoria is electric as the role of polluting gas continues to shrink.
"We congratulate the Allan government on this step to help Victorians improve their health and homes, and encourage other state governments to follow Victoria's lead."
"We also acknowledge the constructive role that Victorian Greens MPs played in supporting these plans."
The Victorian Government announcement includes:
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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.
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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).
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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.
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A program to help Victoria’s gas appliance manufacturers upgrade their facilities and reskill their workforce.
ENDS
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