Victorian 2024 All-Electric Requirements Explained: What Home Buyers Need to Know

12th February 2024

Finance & Budgeting Pre-Construction Sustainability & Energy Efficiency News & Industry Insights

This article breaks down Victoria’s new 2024 all-electric home requirements, explaining who is affected, how to check your land’s status, and what appliances and costs are involved. It’s a must-read for anyone buying land or building a new home in Victoria.

Victorian 2024 All-Electric Requirements Explained: What Home Buyers Need to Know

With the Victorian Government's 2024 shift toward mandatory all-electric homes for certain new builds, many home buyers are left asking - how does this affect me? In this episode of the Home Building Hub podcast, Colin Bischof and Darren Brennan break down exactly what these changes mean, how to know if they apply to your block, and what to expect in terms of costs and options. Whether you're buying land, building your first home, or considering a knockdown-rebuild, this guide will help you understand how to navigate the new energy regulations.

What Are the New All-Electric Requirements?

From 1 January 2024, any new home in Victoria that requires a planning permit must be all-electric. That means no connection to gas is permitted, including:

• Gas cooktops

• Gas ducted heating

• Gas hot water systems

• Gas alfresco BBQ points

• Gas fireplaces

This move is aimed at reducing fossil fuel reliance and aligning with Victoria's renewable energy targets. While well-intentioned, it’s introduced new cost and design considerations for buyers and builders alike.

How to Know If Your Land Is Affected

Not all land is automatically impacted. The key trigger is whether a planning permit is required for your home. Here's how to tell:

• Check your Plan of Subdivision: Look for the planning permit number and year of issue.

• If the permit was issued in 2024 or later: You must go all-electric.

• No permit? You may still be able to connect gas.

Other situations where planning permits may be triggered:

• Subdividing a block into two or more lots

• Bushfire Management Overlay areas

• Height restrictions or wall height compliance issues

• Building in knockdown-rebuild zones or small lot housing where SLHC is not applied

Tip: Always speak with your builder or land developer to confirm the planning permit status.

What Will Replace Gas Appliances?

All-electric homes will feature:

• Induction cooktops and electric ovens

• Electric hot water systems (typically with heat pumps)

• Reverse cycle split systems or ducted refrigerated heating and cooling systems

In some cases, three-phase power may be needed to support high-demand electric appliances like induction cooktops.

You can still use bottled LPG gas for BBQs or cooking if absolutely necessary, though this is more common in rural areas.

How Much Will It Cost to Go All-Electric?

There's no way around it - going all-electric does cost more upfront, despite some messaging suggesting otherwise.

Here’s a general breakdown:

• Standard single-storey home: $10,000 - $30,000 extra

• Larger homes or two-storey builds: Potentially more

The biggest cost drivers include:

• Upgrading heating and cooling systems

• Heat pump hot water units

• Induction cooking appliances

• Three-phase electrical upgrades (if needed)

Some builders may offer an "electric pack" to help consolidate and simplify these upgrades.

How Are Builders Handling the Change?

Builders are responding in a variety of ways:

• Some have already transitioned fully to electric across all builds.

• Others are still offering gas where permitted and preparing "bolt-on" all-electric packs for lots that require it.

• Expect flexibility in greenfield estates, where some permits were issued before 2024 and still allow gas.

This is a transition period, so it's critical for buyers to ask the right questions early:

• Is my block subject to the all-electric rules?

• Will gas be included in my build?

• What are the upgrade options if electric is required?

What If I Really Want Gas?

If you're passionate about cooking with gas, your only option might be LPG bottles. While viable, this setup:

• Is more common in rural builds

• Is more expensive to run long-term

• Requires modifications to appliances

Key Takeaways

• New all-electric rules apply to homes requiring a planning permit issued from 1 Jan 2024.

• Gas will be removed from standard inclusions in these homes - think cooktops, heating, hot water.

• Expect to pay $10,000 - $30,000 more to convert to full electric.

• Builders are adapting at different rates - ask your builder directly about your lot and available options.

• Be patient - the industry is adjusting to overlapping regulation changes including 7-Star and Livable Housing requirements.

Listen to the Full Episode

For more details and practical examples, listen to the full episode: Victorian 2024 all-electric requirements explained

Glossary of Terms

• All-Electric Home: A home that uses electricity only, with no gas connection.

• Planning Permit: Approval from council required for certain types of building or land use.

• Reverse Cycle System: A system that can both heat and cool a home using electricity.

• SLHC: Small Lot Housing Code, a code that simplifies design approval on blocks under 300 sqm.

• LPG: Liquefied Petroleum Gas, often used in bottles as an alternative fuel source.

FAQ

Do I need to go all-electric if I already own land? Only if the planning permit was issued from 1 January 2024, or if your design requires a planning permit for council approval.

Can I still get gas if I am in a greenfield estate? Yes, if the planning permit for your stage was issued before 2024.

Will all-electric cost more? Yes, generally speaking, although running costs may be lower over time.

Can I use gas bottles for cooking? Yes, bottled LPG is still permitted.

What if my builder doesn’t know yet? Give them time - this is a transition period and many are still finalising pricing and inclusion updates.

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process—completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at http://www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.