Air con rebates in Australia in 2026

Is there a government rebate for air conditioners in 2026?

In some states, yes. Air conditioner rebates in Australia are state programs, not federal ones, and they work very differently. Victoria, New South Wales and South Australia run certificate schemes that discount the install for everyone. The ACT runs a means-tested rebate. The rest have nothing for a household air conditioner in 2026.

Whichever state you're in, the rebate only becomes a number on an accredited installer's quote. Get up to three local quotes and we'll show which scheme applies to your postcode.

Which state has the biggest air conditioner rebate?

Victoria, by a distance, and only if you are taking out gas. The Victorian Energy Upgrades discount for replacing a ducted gas heater is up to $2,520 for a 10 kW ducted reverse cycle, $4,200 for 16 kW and $5,530 for 22.4 kW. Replacing a central electric ducted heater earns up to $5,460. A ducted gas heater replaced with a multi-split gets up to $2,940.

The Victorian Government also puts the bill saving at up to $1,140 a year for a ducted gas swap, and up to $460 a year for a room heater swap. On a typical ducted system at $7,500 to $18,000, that discount plus the bill saving is what changes the decision.

Everywhere else, the rebate is a nice line on the quote. The gap between two installers' prices is usually bigger.

If you're in Victoria with gas ducted in the roof, get a quote that itemises the gas removal and the VEU discount separately.

How do air conditioner rebates actually work?

Most of them are not rebates at all. VEU in Victoria, the Energy Savings Scheme in NSW, REPS in South Australia and the ACT's Energy Efficiency Improvement Scheme are certificate or retailer schemes. The installer, or the accredited business behind them, earns certificates or credits for the energy your new unit saves, sells them, and passes part of the value to you as a discount on the quote. You never see a government form.

That has three consequences. The discount only exists if your installer is accredited or partnered with an accredited provider. The amount moves with certificate prices, which is why every government figure is "indicative" or "up to". And the paperwork has to be signed before the job starts; NSW says plainly that work already done is not reimbursed.

The ACT's Home Energy Support rebate is different. It is a genuine rebate, means-tested, paid to you after installation once your application is pre-approved.

• Ask whether the installer is accredited under your state's scheme, or who their accredited provider is.
• Get the discount as its own line with a dollar figure.
• Get the exact model numbers so you can check the unit is eligible.
• Sign the scheme paperwork before any work starts.

A good local installer handles all of this as part of the job. Ask for a quote and the rebate paperwork comes with it.

Heat pump rebates: air conditioning and hot water

A reverse cycle air conditioner is an air-to-air heat pump, so "heat pump rebate" searches often mean the air conditioner programs above. Heat pump hot water is a separate product with separate rules.

For hot water, VEU has its own heat pump water heater discounts in Victoria, and Solar Victoria runs a separate hot water rebate. Nationally, heat pump water heaters can create Small-scale Technology Certificates, which the Victorian Government describes as an Australian Government payment to purchasers of renewable energy systems. Those certificates do not apply to reverse cycle air conditioners.

Rebates for replacing gas heating with reverse cycle

This is where the serious money is, and it is mostly in Victoria and the ACT.

• Victoria: VEU pays up to $5,530 when ducted gas is replaced with ducted reverse cycle, and $630 to $1,610 when a split replaces a gas room heater.
• ACT: ActewAGL electricity customers can get $2,500 off a ducted reverse cycle replacing ducted gas, plus $500 in bill credits over three years, under the Energy Efficiency Improvement Scheme. Concession card holders can get up to $5,000 off.
• ACT concession card homeowners: Home Energy Support pays 50% up to $2,500, whatever you are replacing.
• Everywhere: if heating was your last gas appliance, disconnecting removes the gas supply charge. The Victorian Government estimates that at around $350 to $400 a year.

Our reverse cycle vs gas heating guide covers running costs, cold climates and what a gas ducted replacement involves.

Can I get an air conditioner interest-free?

In some places, from a government program rather than a retailer.

Compare any retail "interest free" deal against these. Retail finance often carries account fees or sits on a price that has quietly gone up. Price the job first with a local quote, then decide how to pay.

Is there an energy bill rebate in 2026?

Not an automatic one. The federal Energy Bill Relief Fund ended on 31 December 2025, after paying up to $150 per household across the second half of 2025. There is no universal credit on 2026 bills.

Concession card holders still get state help on the bill. In Victoria the Annual Electricity Concession is 17.5% off usage and service costs. NSW's Low Income Household Rebate is up to $285 a year for retail customers. Queensland's Electricity Rebate is $399.47 a year. None of these reduces the price of a new air conditioner, but a more efficient unit makes each one go further.

How to make sure you actually get the rebate

• Check the scheme on the official page for your state before you sign. Every state page on this site links it.
• Be wary of unsolicited calls and door knocks. In Victoria, telemarketing and door knocking for VEU upgrades have been banned since 2024.
• "Free" air conditioners are rare. The largest VEU split discount is $1,610, and it needs a gas heater to come out.
• Compare the total you pay, not the discount. A $560 discount on a quote that is $1,500 dearer is a loss.
• Keep the paperwork: the quote, the nomination or assignment form, the invoice with model numbers and the compliance certificates.

Our what a good quote includes guide lists every line to look for. When you're ready, get a quote with the rebate shown upfront.