Should landlords replace a working gas heater before 2027?

From 1 March 2027, when a rental's fixed heating system fails and can't be repaired, it must be replaced with an energy-efficient fixed electric heating system with an outlet in the main living area. A working heater that meets the current standard doesn't have to be replaced. The trigger is a failure, not a date.

The current standard still applies. Every rental needs a fixed heater in good working order in the main living area, and for agreements entered into from 29 March 2023 it must be energy efficient. Today that includes a gas space heater rated 2 stars or above, or a ducted system with an outlet in the main living area. A heater that falls short of that already needs attention.

Our view is that the decision turns on the heater's age, condition and type, not the deadline. A newer, well-serviced gas ducted system with an outlet in the living area can reasonably stay. An old wall heater with repeat repairs is different. It's the one most likely to fail on the first cold night, when a heating appliance that has stopped is an urgent repair and the replacement has to happen fast.

Replacing during a vacancy, or in spring or autumn, gives you time to choose the outdoor unit position, check the switchboard and agree access with nobody shivering. Forced replacements in July tend to be rushed, and rushed jobs make worse decisions about size and placement.

Energy Safe Victoria says open-flued gas heaters can spill carbon monoxide more easily than other types, which makes them more dangerous, and it banned the sale of old open-flued heaters without safety shutdown features from 1 August 2022. It recommends all gas heaters be serviced at least every two years by a qualified gasfitter, including a carbon monoxide test.

There's a standards angle too. Under the draughtproofing standard due from 1 July 2027, a rental with gas appliances needs a gas safety check by a licensed plumber before draughtproofing starts, and if it finds open-flued or unflued gas appliances, the draughtproofing must not go ahead. An old open-flued heater can hold up a standard as well as being a safety concern.

From 1 March 2027, energy-efficient fixed cooling with an outlet in the main living area is required when a new rental agreement starts, and from 1 July 2030 every rental needs it. Consumer Affairs Victoria's guide says one reverse-cycle air conditioner can meet both the heating and cooling standards.

So if a property has gas heating and no cooling, and the lease is likely to turn over in the next year or two, one reverse-cycle split in the living area solves both. For a non-ducted unit, that means a GEMS heating rating of 2 stars or more and a cooling rating of 3 stars or more for the climate area. Waiting for the gas heater to die means doing the same job later, under pressure.

Whether you replace now or wait, find out whether the switchboard can take a reverse-cycle system. A split needs its own circuit, and an original board in an older rental may have no room. If the main switchboard has to be replaced, power can't go back on until a Licensed Electrical Inspector has inspected it, which is far easier to manage in a vacancy.

Under the cooling standard, the cost of electrical work for the installation and of upgrading a switchboard for the extra load don't count when judging whether fixed cooling is unreasonable to install. Knowing the board's condition now turns a breakdown into a planned swap.