Victorian Government Split System Rebate: 2026 Changes Explained
Major Benefits
If you're looking into the Victorian government split system rebate, there's an update worth knowing about. The Victorian Government has confirmed changes to the Victorian Energy Upgrades (VEU) program that affect how much you pay towards a new reverse cycle air conditioner. From 30 September 2026, the minimum amount you contribute before the rebate applies is going up for bigger systems, and a new cap limits how much incentive larger multi-split systems can earn. This guide breaks down what's changing, who it affects and what it means if you're planning an upgrade.
Table of Contents
- What Is Changing to the Victorian Government Split System Rebate?
- Who Has to Pay the New $3,000 Minimum Co-Payment?
- Does the Change Apply to Every Split System?
- What Is the New 20kW Incentive Cap?
- Is the Victorian Air Conditioner Rebate Ending?
- Why Is the Government Making These Changes?
- Should You Install Before 30 September 2026?
- How to Check If Your System Qualifies
- Frequently Asked Questions
From 30 September 2026, the minimum co-payment for ducted systems and multi-split systems of 10kW or more rises from $1,000 to $3,000 including GST. Multi-split systems under 10kW keep the $1,000 minimum. A new 20kW cap also limits how much incentive bigger multi-split systems can earn. The rebate itself isn't ending.
The Victorian Government published its response to the space heating and cooling review on 13 July 2026, confirming three changes to the Victorian Energy Upgrades program. All three take effect from 30 September 2026.
Alongside the co-payment rise, the incentive calculation for residential multi-split systems will be capped at 20kW of heating and cooling capacity. Both changes come from the same review and land on the same date.
The new $3,000 minimum applies to two groups of installations from 30 September 2026:
- Ducted reverse cycle air conditioners of any size
- Multi-split reverse cycle air conditioners with a cooling capacity of 10kW or more
If your multi-split system is under 10kW, your minimum co-payment stays at $1,000. This threshold matters most for households looking at a whole-of-home upgrade or several indoor units running off one outdoor unit, since that's where systems tend to cross the 10kW mark.
No. A small non-ducted split system for a single room isn't touched by this update. The $3,000 minimum is specific to bigger installations such as ducted systems that heat and cool a whole home, and multi-split systems of 10kW or more that usually cover several rooms. If you're just after one unit for a bedroom or living area, the rules you know today still apply.
You might also like:Current Victorian Government Rebates: Active, Inactive and Upcoming.
From 30 September 2026, the heating and cooling capacity used to work out the rebate for a residential multi-split system is capped at 20kW. You can still install a bigger system if your home genuinely needs one, but any capacity above 20kW simply won't earn extra incentive. The cap doesn't apply to non-residential installations. If you're planning several indoor units across bedrooms, living areas and a study, it's worth checking with your installer where your planned system sits against that 20kW mark.
No, the Victorian government split system rebate isn't disappearing. The Victorian Energy Upgrades program continues, and current figures from Energy Victoria show households can still save up to $5,000 replacing a ducted gas heater with an efficient ducted reverse cycle system, and up to $1,000 replacing a non-ducted gas heater. What's changing is how much you personally put in before that rebate applies, not whether the rebate exists.
According to the department's published response, the changes follow a review of how heating and cooling systems are sized and installed under the VEU program. Stakeholder submissions strongly agreed on the need to improve system design and sizing, so the government is adjusting the co-payments and incentive cap to encourage right-sized systems and protect the quality of installs. The department has also flagged a further consultation paper on system sizing later in 2026, so this may not be the last change to the activity.
If you were already planning a ducted upgrade or a larger multi-split system, it's worth understanding how timing affects your out-of-pocket cost. Complete your installation before 30 September and the current $1,000 minimum co-payment applies. After that date, the minimum rises to $3,000 for the same size system, a $2,000 difference for anyone doing a whole-of-home upgrade.
That said, a looming deadline isn't a reason to rush a big decision. Get more than one quote, make sure the proposed system is the right size for your home and confirm the details with your installer before you sign anything.
A few quick checks help before you commit to an upgrade:
- Ask your installer whether your system is ducted or multi-split, and what its cooling capacity is
- Confirm whether it sits above or below the 10kW threshold
- Check your provider is VEU accredited
- Ask for a written quote that shows the co-payment and the discount as separate line items, so you know exactly what you're paying and what the rebate is covering.
As a VEU Accredited Provider, our team at EcoOrigin can help you work out how the new rules apply to your home and where your system size sits against the 10kW and 20kW thresholds. We've completed more than 47,500+ installations across Victoria, so we know how to size a system right the first time.
Bringing It All Together
The Victorian government split system rebate is changing, not disappearing. From 30 September 2026, the minimum co-payment rises to $3,000 for ducted systems and larger multi-split systems, while a new 20kW cap limits how much incentive bigger multi-split installs can earn. Smaller systems and single-room units aren't affected.
If you're weighing up your air conditioner rebate Victoria options, the best move is a proper assessment of your home and system size before you commit. Get in touch with our team at EcoOrigin and we'll walk you through how the changes apply to your home.
1. Does the Victorian government split system rebate still exist after 30 September 2026?
Yes. The Victorian Energy Upgrades program continues. What changes is the minimum co-payment for larger systems, not the existence of the rebate.
2. Is the $3,000 figure the rebate amount or something I pay?
It's the minimum amount you pay before the rebate is applied, not the rebate itself. The actual rebate amount depends on the system, its size and the certificates it generates.
3. Does the $3,000 co-payment apply to small split systems?
No. It applies to ducted reverse cycle systems and multi-split systems with a cooling capacity of 10kW or more. Smaller multi-split systems under 10kW keep the existing $1,000 minimum.
4. What happens if my multi-split system is under 10kW?
Your minimum co-payment stays at $1,000 including GST. Only ducted systems and larger multi-split systems face the increase.
5. Can I still install a system bigger than 20kW after 30 September 2026?
Yes, but any capacity above 20kW won't earn extra VEU incentive for residential installations. You can still install the size your home needs.
6. Do I need to act before 30 September to get the current rates?
If your installation is completed before that date, the current minimum co-payment applies. Talk to an accredited provider early if timing matters to you, but don't rush a decision purely because of the deadline.