Victoria’s gas substitution: What it means for everyday developments

Victoria’s gas transition is now a planning requirement

Victoria’s move away from gas is no longer a policy direction. It is embedded in the planning and building system. If you are working on new residential development, it already affects you.

For years, electrification sat in the sustainability space. It was something a project could choose to adopt. Gas remained the default. That position has shifted.

From the 1st of January 2024, new planning permit applications for a new dwelling, apartment development or residential subdivision cannot connect to reticulated natural gas. Councils must apply a mandatory condition preventing that connection.

There is no discretion in that requirement.

If you’re lodging a new subdivision permit, each new lot created under that permit will carry a condition prohibiting a future dwelling from connecting to the natural gas network. That applies even if the eventual dwelling does not require its own planning permit.

This is where the impact becomes practical.

Practical Implications for Developments

In a greenfield estate, the servicing strategy is typically resolved early. Water, sewer, electricity, and historically gas are coordinated together. That assumption can no longer sit in the background. Electrical capacity, transformer locations, and network upgrades need to be addressed up front. That affects cost planning and staging.

It also affects how projects are marketed. Display homes can no longer present gas cooktops as standard inclusions if the estate itself is subject to the prohibition. That sounds minor, but it reflects a broader shift in what is considered normal.

There are transitional provisions, and they matter.

Transitional Provisions

Permit applications lodged before 1 January 2024 are not captured. Section 72 amendments to those permits are generally exempt. Staged subdivisions may also fall outside the prohibition if the original permit predates the change.

Extensions and alterations to existing dwellings are not affected, and existing homes can continue using gas appliances. The reform targets new residential development, not retrofitting existing housing stock.

The prohibition is also limited to reticulated natural gas; LPG is not included. In some regional and fringe contexts, that distinction is important.

The Next Layer: Building Regulation

From 1 January 2027, all new homes and most new commercial buildings must be constructed as all-electric. From 1 March 2027, when a gas hot water system in an existing dwelling reaches the end of its life, it must be replaced with an electric alternative.

Planning reforms came first, and building reforms are following.

Implications for Developers and Landowners

Timing is now a key consideration.

• If you are acquiring land today and intend to lodge a subdivision permit, assume no reticulated gas. This is not a future risk; it is the current position.
• If you are preparing a dual-occupancy or apartment proposal, expect a no-gas condition on the permit and design accordingly.

Clients often focus on appliances, with cooktops becoming the symbolic issue. Some associate gas with performance or premium finishes, while others raise concerns about cost or reliability. These are reasonable questions, but they exist within a framework that is already set.

Victoria builds tens of thousands of homes each year. Historically, most connected to gas. Continuing that pattern would expand network infrastructure and lock in long-term emissions and asset costs. The prohibition is designed to prevent that lock-in.

A Structural Shift in Planning

From a planning perspective, the more significant change is structural. Planning controls are increasingly shaping infrastructure systems, not just built form. When a new estate is delivered without gas reticulation, that servicing model is effectively fixed for decades. That is the policy intent.

It also means early advice matters more. Projects where servicing assumptions were made before the gas prohibition was fully understood often require redesign, revised costings, and face unnecessary delays. A clear understanding of the prohibition’s application avoids this.

Planna’s Role

At Planna, our role is not to debate the policy; it is to explain it clearly and apply it correctly. That means:

• Identifying whether a project is captured.
• Checking lodgement dates carefully.
• Understanding how staging affects exposure.
• Advising on servicing implications before a permit is lodged, not after a condition is imposed.

If a subdivision permit was lodged after 1 January 2024, the lots created will carry a condition preventing connection to reticulated gas. If a new dwelling permit is being prepared now, connection to the gas network will not be possible. By 2027, new buildings will need to be fully electric under building regulations, regardless.

When this is understood early, it avoids redesign, cost revisions, and unnecessary debate late in the process.

Electrification is Standard Practice

Victoria’s Gas Substitution Roadmap is often framed as an appliance issue. In practice, it is about infrastructure and long-term servicing models. Electrification is not an upgrade; it is becoming standard practice.

If you are planning a new residential development in Victoria, it should already be built into your assumptions.

Chat with us today to understand how these changes may affect your project and plan ahead with confidence.