Victorian Opposition Vows to Scrap Labor's Gas Appliance Ban Within 100 Days of Election Win

MELBOURNE — Victoria's Liberal-National opposition has pledged to immediately scrap the Labor government's ban on gas appliances if it wins the upcoming state election, arguing the policy is driving up housing costs and energy bills while removing consumer choice.

Opposition leader Jess Wilson announced that a Coalition government would reverse the restrictions within its first 100 days in office. The current rules require all new homes and most commercial buildings to be all-electric from 1 January 2027. From 1 March 2027, domestic hot water systems that need replacing must be switched to electric units, although gas stoves and heating systems can still be replaced with gas equivalents.

"Victorians should decide how they cook their meals, heat their homes and run their businesses – and under a Liberal and Nationals Government, they will," Wilson said.
The opposition claims the ban is already adding up to $15,000 to the cost of building a new home. Simonds Group chief executive Rhett Simonds supported the pledge, stating that moving to all-electric construction could increase new-home costs by that amount. "We should be removing barriers to home ownership, not adding them," he said. "Families should be able to choose gas or electricity based on their needs, their preferences and their budget."

Modelling commissioned by the Australian Gas Infrastructure Group suggests households currently paying a $608 annual gas distribution charge for cookers, hot water and heaters could see bills rise by between $142 and $267 a year under the reduced demand caused by the bans. Larger commercial and manufacturing users could face increases of $59,000 to more than $111,000 annually on existing distribution charges.

The opposition argues that lower overall demand for gas will force remaining users to shoulder higher network costs, effectively transferring the expense of the transition onto those who cannot or choose not to switch quickly. Industry modelling indicates gas prices could rise at least 20 per cent as suppliers adjust to shrinking volumes.

Labor has defended the policy as a necessary step to cut household energy bills and reserve gas supply for industrial users. Energy Minister Jaclyn Symes said the measures were designed to lower power costs rather than boost gas industry profits. "By reducing demand for gas in households, we're keeping down power bills and reserving supply for industry – our measures have already avoided gas shortfalls forecast by AEMO," she said earlier this month.

The state government offers a $140 discount on induction cooktops and subsidies for energy-efficient reverse-cycle air conditioners. Official modelling claims induction cooktops can save households up to $400 a year, while subsidised air-conditioning units can deliver annual savings of around $460.

Despite these incentives, the opposition and sections of the building industry maintain that the upfront capital costs and loss of choice outweigh the long-term bill reductions for many households, particularly those building new homes or facing appliance replacements.

The gas restrictions form part of Victoria's broader Gas Substitution Roadmap, introduced under previous Labor administrations and continued under the current government. New residential developments have already been barred from reticulated gas connections in many cases since 2024. The 2027 rules extend the phase-out more comprehensively to new construction and end-of-life hot-water replacements.

The policy has become a clear point of difference ahead of the November state election. The Coalition has consistently labelled Labor's approach an "ideological war on gas," arguing it undermines energy security, raises living costs and ignores the preferences of many Victorians who continue to value gas for cooking and hot water.

Labor counters that electrification, paired with renewable energy growth and targeted subsidies, will deliver lower ongoing costs and help the state meet emissions-reduction targets. The government has pointed to avoided gas shortfalls and the need to free up supply for manufacturing and other high-value industrial uses as further justification.

Business groups and gas network operators have warned that a rapid reduction in household connections risks stranding infrastructure and pushing residual costs onto remaining customers. Housing industry representatives have focused on the direct impact on new-home affordability at a time when construction costs and interest rates already strain first-home buyers and families.

Wilson's 100-day commitment frames the issue as one of restoring choice rather than prolonging fossil-fuel use indefinitely. The opposition has not detailed alternative emissions-reduction pathways or specific support measures for households that voluntarily switch to electric appliances, concentrating instead on the principle of consumer decision-making and the claimed cost impacts of the current mandate.

As the election approaches, the gas appliance rules have emerged as a tangible cost-of-living and housing-affordability battleground. Labor presents the phase-out as forward-looking policy that protects both household budgets and industrial gas users. The Coalition presents it as an unnecessary restriction that inflates building costs and removes everyday choice from Victorian families and businesses.

The outcome of the election will determine whether the 2027 start dates for all-electric new builds and mandatory electric hot-water replacements proceed as planned, or whether a change of government triggers a rapid legislative rollback. For now, the opposition has placed a clear, time-bound promise on the table: scrap the ban within 100 days of taking office.