The verdict

If you are considering ducted reverse-cycle in Victoria, quote it before 30 September 2026. The minimum you must pay out of pocket under the VEU triples from $1,000 to $3,000 on that date, and incentives on residential multi-splits get capped at 20kW. Small single splits are untouched.

What exactly changes on September 30

The Victorian government announced the change in July 2026 following its review of the VEU's heating and cooling activity. Two things happen:

SystemNowFrom 30 Sept 2026
Single split under 10kW$200 min co-payment$200 (no change)
Multi-split under 10kW$1,000 min co-payment$1,000 (no change)
Ducted reverse-cycle$1,000 min co-payment$3,000
Multi-split 10kW+$1,000 min co-payment$3,000
Residential multi-split over 20kWFull incentiveIncentive capped at 20kW

Source: DEECA VEU industry announcement, 13 July 2026. Some industry sites report a 17kW cap or a 31 July date, both are from earlier consultation drafts; the announced decision is 20kW and 30 September.

What it means in dollars

The headline VEU discounts on ducted systems, up to $5,530 when replacing ducted gas heating, are generated the same way before and after the change. What moves is the floor: today a provider can discount a big ducted job down to $1,000 out of pocket, from September 30 they cannot go below $3,000. If your quote would have landed anywhere near the old floor, the change costs you up to $2,000. If your discount was modest anyway, you may notice nothing.

What to do about it

  • Replacing ducted gas heating, or an old ducted system? Get quotes now and aim to have the job contracted and installed before September 30. This is the group with real money on the line.
  • Buying a single split? Nothing changes for you. Ignore any urgency marketing that says otherwise.
  • Quoted a "free" or near-free large system? That already breaches the co-payment rules. The floor exists precisely because of those offers, choose a provider who shows the discount and co-payment as honest line items.

Full scheme detail, official discount figures and eligibility are on our Victorian rebate page.

Six weeks is enough time, barely. Ducted quotes typically take a site visit, and installers' books fill towards summer. Start now and the deadline is comfortable.

Get free quotes

September 30 change FAQs

Does this affect normal split systems?
No. Single splits under 10kW keep their $200 minimum co-payment, and multi-splits under 10kW stay at $1,000. The change targets ducted systems and multi-splits of 10kW or more.
Is the rebate itself getting smaller?
The discount mechanism (certificates generated by the upgrade) is unchanged. What changes is the floor on what you must pay yourself, which rises by $2,000 on the affected systems. On a big ducted job where the discount would have taken you close to the old $1,000 floor, that is effectively $2,000 more out of pocket.
What if my install happens after September 30 but I signed before?
The announcement does not spell out how jobs spanning the deadline are treated. If you are quoting now, ask the provider in writing which co-payment applies to your job and when the work will be completed. We will update this guide when the final rule text is published.
Why is the government doing this?
The change came out of a formal review of the space heating and cooling activity. Raising the co-payment on large systems and capping multi-split incentives reins in the cost of the biggest discounts and some aggressive "free upgrade" marketing built on them.