The phasing out of electric hot water systems will be implemented on a state-by-state basis.

South Australia already has a program in place, and from 1 January 2010 Queensland will begin its phasing out program whereby existing houses and townhouses located in a reticulated natural gas area must install a greenhouse efficient hot water system when the existing electric resistance system needs replacing.

By 2012, electric hot water systems will no longer be able to be installed in any existing detached, terraced or townhouse or any new flats and apartments which have access to piped gas.

The Australian Department of Environment has said that the phase out will result in the reduction of greenhouse gases by approximately 30 million tonnes from 2020–30.