Victoria’s transition away from gas has become a fresh political flashpoint, with the state Opposition launching a new advertising campaign against government’s reforms while the government defends the changes as a measured response to future supply risks and rising household bills.
The Liberals and Nationals this week began running advertisements across radio, YouTube and other platforms opposing the Allan Government’s gas policies, arguing they limit consumer choice and impose unnecessary costs on households. The campaign comes as key elements of Labor’s gas substitution plan move closer to implementation.
Under reforms announced by the Victorian Government in mid-2025, all new homes and most new commercial buildings will be required to be built all-electric from January 2027. From March 2027, gas hot water systems in existing homes will need to be replaced with efficient electric alternatives, such as heat pumps, when they reach the end of their life. Repairs to existing gas systems will still be allowed, and gas cooking appliances and space heating in owner-occupied homes are not covered by the replacement requirement.
Under reforms announced by the Victorian Government in mid-2025, all new homes and most new commercial buildings will be required to be built all-electric from January 2027
Additional standards will apply to rental properties and public housing from the same date, including minimum energy efficiency measures and the replacement of gas heaters with reverse-cycle air conditioning when systems fail. Exemptions are available where installation costs are prohibitively high or space constraints apply. The policy does not affect liquefied petroleum gas.
The Opposition has characterised the changes as a “gas ban” and is framing the issue as a question of household autonomy. It argues that families should be free to choose how they heat their homes and cook, rather than being directed by government policy.
“Labor’s gas ban will cost many families tens of thousands of dollars as the ban will prevent the replacement of existing gas appliances”
Shadow Minister for Energy and Emissions Reduction David Davis said the reforms would have serious financial consequences. “Labor’s gas ban will cost many families tens of thousands of dollars as the ban will prevent the replacement of existing gas appliances,” he said.
He also pointed to earlier decisions affecting new developments and businesses. “Labor have also banned gas connections on new estates and limited energy options for new businesses,” Mr Davis said.
The Opposition has pledged to reverse Labor’s approach if elected, saying a future Liberal and Nationals government would restore consumer choice by allowing households to continue using gas.
The Allan Government rejects the characterisation of its policy as a blanket ban, arguing the changes are staged, targeted and designed to manage long-term risks to Victoria’s gas supply. The government has cited projections of gas shortages later this decade and says electrification will help reserve gas for industrial use while lowering household energy costs over time.
Labor has also emphasised that existing gas appliances can continue to be used until the end of their life and that exemptions remain available where switching costs are excessive
According to government estimates, efficient electric hot water systems could save households hundreds of dollars a year, particularly when combined with rooftop solar. Support measures include rebates through programs such as Victorian Energy Upgrades and Solar Victoria, planning tools to estimate upgrade costs, and a $9.5 million program aimed at helping local manufacturers and workers adjust to the transition.
Labor has also emphasised that existing gas appliances can continue to be used until the end of their life and that exemptions remain available where switching costs are excessive. It says the reforms strike a balance between emissions reduction, cost pressures and practical constraints, especially for renters.
With the Opposition turning the policy into a campaign issue and Labor standing firm on its timetable, gas is shaping up as a central point of contention ahead of the next state election, reflecting broader tensions between cost-of-living concerns and the pace of Victoria’s energy transition.
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