The 1 March 2027 gas hot water rule for East Gippsland homes

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 rather than another gas unit. The requirement sits in the Plumbing Regulations 2018 and applies in Bairnsdale and across East Gippsland as it does in Melbourne. Your gas cooktop and gas heater are not affected, and a gas hot water unit that can still be repaired can keep running.

This guide explains the rule for owners, landlords and people building new. Bairnsdale Plumber is a referral service; the replacement itself is quoted and installed by an independent licensed provider, as the about page sets out.

What exactly changes on 1 March 2027?

Energy Victoria’s electrification standards page lists three changes that start in 2027. They apply to different people.

Change	Starts	Legal basis	Who it affects
New homes and most new commercial buildings must be all electric	1 January 2027	Building Regulations 2018	People building, builders, developers, surveyors
A gas water heater at end of life in an existing home is 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 program words the hot water change this way: from 1 March 2027, a gas water heater that needs replacing in an existing home, including a gas swimming pool heater, cannot be replaced with another mains gas water heater and must be replaced with an electric system.

When does a unit count as end of life?

The gas distributor AusNet Services describes it on its gas rules page as a system that has reached end of life and cannot be repaired or safely maintained. In practice that means:

• A faulty part such as a thermostat or valve on a sound tank can usually be repaired, and in that case the gas unit can stay.
• A tank leaking from the body, or a unit a licensed gasfitter says cannot be made safe, is at end of life, and its replacement must be electric from 1 March 2027.

Ask the plumber to put the diagnosis in writing. If they say the unit is beyond repair, you have a record of why.

What is not affected?

Item	Position from AusNet and Energy Victoria
Gas cooktop	Can be kept, repaired or replaced with another gas cooktop
Gas space heater	Can be kept, repaired or replaced with gas
Gas hot water that can still be repaired	Can be repaired and kept running
Renovating an existing home	Existing gas connection can stay; only the hot water replacement changes
Apartment buildings with centralised hot water	Excluded from the hot water rule
Gas barbecue on a bottle	Unaffected

A knock-down rebuild is different. AusNet says the new home must be all electric and cannot be reconnected to gas, because it is treated as a new home.

Does the rule cover LPG bottles in country homes?

The sources do not line up neatly, so do not assume either way. VEU’s 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 barbecues or in regional homes for hot water and cooking. Neither page is the regulation itself.

Homes beyond the gas mains sometimes run hot water off LPG cylinders. If yours does and the unit is failing, ask the gasfitter to confirm in writing what the regulations allow for your installation before you choose a replacement. This site does not treat LPG as formally exempt.

What about rental properties?

Rental providers have a separate set of standards under the Residential Tenancies Regulations 2021, phased in from 1 March 2027. VEU says that for rental homes, a water heater that stops working and cannot be repaired after that date must be replaced with an efficient electric water heater, such as a heat pump or electric-boosted solar. AusNet adds that the same applies to a heating system that fails beyond repair, and that there is no requirement to replace gas cooktops in rentals.

So a landlord with a failed gas unit after 1 March 2027 cannot fit a plain electric storage tank and call it done; it needs to be an efficient electric option. The heat pump vs electric storage comparison sets out how those options differ.

What about new homes and building permits?

From 1 January 2027, new homes must be built all electric under the Building Regulations 2018. AusNet notes that if your building permit was approved before 31 December 2026 you may still be able to connect gas. If you are building around Bairnsdale and your permit is close to that date, talk to your builder and surveyor now.

What about Lakes Entrance and its gas network closure?

Homes on the Lakes Entrance compressed natural gas network have a separate network closure to deal with, covered on the Lakes Entrance area page.

What should you do if your gas unit is old now?

You have three choices, and the right one depends on the unit’s condition.

Your situation	Sensible option
Gas unit working well with no leaks or faults	Keep it and maintain it; the rule only bites at end of life
Gas unit old, rusty or leaking, and you want to keep gas	Before 1 March 2027 a like-for-like gas replacement is still allowed; weigh that against the running-cost and rebate case for electric
Gas unit failing and you are open to electric	Plan a heat pump or solar-boosted replacement now, with time to arrange the discount and rebate

Planning matters because of the paperwork. The VEU discount has to be arranged through an accredited provider before installation, and VEU says retrospective discounts are typically not possible. Solar Victoria’s hot water rebate also starts with an approved quote. Solar Victoria does allow a breakdown replacement to go in before eligibility is confirmed when a system fails or is unsafe, but you still have to prove eligibility afterwards. Its hot water rebate page sets out the steps.

If you would rather get a quote in hand before the unit fails, ask for a gas-to-electric hot water quote now, while there is time to compare.

What does switching from gas to electric involve?

A provider replacing a gas unit with a heat pump typically needs to:

1. Check the gas unit and confirm it is at end of life, or confirm you have chosen to replace it early.
2. Check the switchboard capacity and whether a new circuit is needed, which is electrician’s work.
3. Choose a site with airflow for a heat pump, or roof space and sun for solar panels.
4. Disconnect and cap the gas supply to the old water heater, which is gasfitting work.
5. Install the new unit and pipe its relief valve drain to a proper discharge point.
6. Issue a compliance certificate. The BPC requires one at any value for installing, relocating or replacing a Type A gas appliance, and above its value threshold for other plumbing work.

The heat pump hot water page covers the install in more depth, and the gas fitting page covers capping a gas line and the rest of the gas work.

Does the rule apply in country Victoria?

Yes. The Plumbing Regulations 2018 apply statewide, so a Bairnsdale, Paynesville or Metung home on mains gas is covered in the same way as a Melbourne one. The difference out here is practical: The Quote Yard’s Gippsland guide notes that travel becomes a large share of small jobs east of Bairnsdale, which is one more reason to plan the replacement rather than wait for a cold-shower morning.

Next step: plan the replacement before the unit fails

When you send your hot water replacement enquiry, include a photo of the gas unit’s model plate and the date of manufacture if you can see it, whether it runs on mains gas or LPG bottles, where it sits, whether you own or rent the property, and whether you want a heat pump, solar-boosted or electric storage quote. Say if the unit is still working, so the provider knows whether a planned job is possible.

Send a job enquiry