Up to $5,530Off a gas-ducted changeover
$1,000Co-payment (ducted / multi-head)
~$1,500+/yrTypical running-cost saving off gas
Why Ducted Gas Replacement Earns the Biggest Rebate
VEU discounts are funded by certificates (VEECs) that scale with lifetime energy saved — and nothing in a Victorian home saves more energy than retiring a whole-home ducted gas heater. Gas ducted systems are typically 60–90% efficient at the appliance and lose more through ducts; a modern reverse cycle system delivers 4–6 units of heat per unit of electricity. That efficiency gap is why a gas-ducted changeover generates several times the certificates of a like-for-like split swap, and why it headlines the Victorian air conditioning rebate at up to $5,530.
What Qualifies as a Ducted Heating Replacement
- An existing, functioning ducted gas heater (central heating) that is decommissioned as part of the upgrade — old electric resistance and inefficient reverse cycle systems also qualify at lower rebate levels
- Replacement with an approved ducted reverse cycle system or a multi-head split configuration — both count as replacing the gas ducted heating
- Installation by a VEU-accredited provider, who applies the discount upfront on your invoice
- Owner-occupiers, renters (with landlord approval) and businesses with an ABN are all eligible
Ducted Reverse Cycle or Multi-Head Split?
Both replace ducted gas heating and both attract the top tier of the rebate. A ducted reverse cycle system suits homes where the existing duct layout can be reused or refreshed — one indoor unit, whole-home zoning, nothing on the walls. A multi-head split skips ductwork entirely: one outdoor unit runs wall units in 2–5 rooms with individual control, which often wins in homes where ducts are degraded or ceiling space is tight. The ducted & VRF guide and multi-split guide compare the two in detail, and the sizing calculator gives you the kW target either way.
The Running-Cost Case Is as Big as the Rebate
Most Victorian homes switching off ducted gas save on both sides of the ledger: the rebate cuts the install price, then reverse cycle heating costs a fraction of gas to run each winter — and you drop the daily gas supply charge entirely if the home goes all-electric. Put your actual gas bill into the gas heater running cost calculator to see what your current system costs, then the gas vs reverse cycle savings calculator to see the annual saving after switching. For many homes the combined effect pays back the co-payment inside the first winter.
What the Changeover Will Cost You
Straight numbers, because most pages won't give them. A whole-home ducted gas changeover is a bigger job than a split swap, and the rebate is sized to match:
| Replacement path | Typical installed price | Indicative rebate | Typical out-of-pocket |
|---|
| Multi-head split (3–5 rooms, one outdoor unit) | $8,000–$14,000 | ~$2,500–$3,500 | from ~$5,000–$10,500 |
| Ducted reverse cycle (whole home, zoned) | $9,000–$16,000+ | up to $5,530 | from ~$4,500–$11,000 |
Ranges reflect home size, duct condition, roof access and the live VEEC price; the $1,000 mandatory co-payment is included in these out-of-pocket figures. A quote far below these ranges usually means an undersized system or scope quietly cut from the job — get the sizing checked independently with our free sizing calculator before you sign anything.
What Actually Happens on Changeover Day
A ducted gas replacement is usually a one-to-three-day job, and knowing the steps makes the quotes easier to compare:
- Decommissioning the gas heater — the old unit is disconnected, removed and permanently retired. This step is mandatory: it's what generates the certificates that fund your discount.
- Ducts: reuse, refresh or retire — for a ducted reverse cycle system, sound existing ductwork can often be reused or partially replaced; degraded ducts are quoted for replacement. A multi-head split skips ductwork entirely.
- The gas line — the heater connection is capped by a licensed gasfitter. If the home still uses gas for cooking or hot water, the rest stays live. If this was the last gas appliance, you can have the connection abolished and stop paying the daily gas supply charge — roughly $300+ a year back before you count a single unit of energy.
- Commissioning and handover — the new system is tested across heating and cooling, and you get whole-home cooling in summer that the old gas ducts never provided.
Keeping Gas Cooking or Hot Water? That's Fine
Replacing the ducted heater doesn't force the whole home off gas. Plenty of households do the heating first — it's the biggest gas user in a Victorian winter by far — and deal with cooktops and hot water later as those appliances age. The rebate applies to the heating changeover on its own. That said, if the heater is your last gas appliance, going fully electric and abolishing the connection kills the daily supply charge for good, which quietly beats most other savings on the bill. Run your actual gas bill through the gas heating cost calculator to see how much of it is the heater versus the supply charge.
Gas Is Winding Down in Victoria — the Rebate Won't Wait Forever
Victoria's Gas Substitution Roadmap has already made new homes all-electric, and end-of-life replacement rules for gas appliances begin phasing in from 2027. Certificate prices and activity rules also move over time. If your ducted gas heater is ageing, replacing it while the VEU incentive sits at its current levels — rather than as a distress purchase when it fails mid-winter — is the cheaper path on every line.