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Victoria bans gas connections in new homes from 2024
(www.abc.net.au)
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In new homes, they can be fitted with heat pump water heaters, or electric resistance. Heat pumps are fairly efficient, but need the house to be designed with that in mind. Electric is less so, but can use very small spaces and be retrofited as well.
In Australia, the climate is warm enough that installing a heat pump integrated into the top of the tank in a garage or outdoors is fine.
The biggest whinge is going to be giving up that little bit of space.