Knowledge/What earns a certificate/The Victorian Energy Upgrades (VEU) refrigerant rule and its 15 kW cut-off
The Victorian Energy Upgrades (VEU) refrigerant rule and its 15 kW cut-off
Under VEU Part 6, an air conditioner rated below 15 kW cooling must use a refrigerant with a global warming potential (GWP) under 700. R32, at 675, passes. R410A, at 2,088, doesn't. At 15 kW or above this rule doesn't apply, so always say which side of 15 kW you're talking about.
- The limit
- GWP under 700below 15 kW cooling
- R32
- 675passes
- R410A
- 2,088doesn't pass
- Basis
- AR4 (2007)Fourth Assessment Report, not AR5 or AR6
What does the refrigerant rule actually say?
Here's the Part 6 wording. "The GWP of the refrigerant used in an air-conditioner to be installed with a rated cooling capacity below 15kW must be less than 700." GWP is a measure of how strongly a refrigerant warms the climate compared with carbon dioxide.
Part 6 sets the limit for air conditioners. Parts 1 and 3 set the same 700 figure for heat pump water heaters, where it's applied since 1 July 2024.
The bit that catches people is the size limit. The rule only covers units rated below 15 kW cooling. It isn't a VEU ban on every high-GWP refrigerant, and on a bigger job something else is what limits you.
| Refrigerant | GWP on AR4 | Under 700? |
|---|---|---|
| R32 | 675 | Yes |
| R454B | 465 | Yes |
| R410A | 2,088 | No |
| R407C | 1,774 | No |
Which GWP figures count in Australia?
Australian law measures refrigerant GWP with one set of numbers, the 100-year values from the IPCC's 2007 Fourth Assessment Report (AR4). If a refrigerant isn't listed there, the VEU uses the Commercial and Industrial Air Source Heat Pump Water Heater Product Application Guide instead.
New Zealand uses the newer Fifth Assessment Report (AR5), and the numbers differ. So if a GWP figure doesn't say which report it comes from, you can't use it for an Australian compliance claim. An AR5 figure next to a VEU eligibility statement is simply the wrong number.
Every GWP figure on this site says which report it's from. It takes four words, and it's the difference between a number you can rely on and one that only sounds right.
How is this different from the GWP 750 import ban?
There's a separate federal import ban, from 1 July 2024. It stops pre-charged equipment coming into Australia if the refrigerant is above GWP 750 and the standard charge is up to 2.6 kg. It covers single-head split outdoor units, portables, and window or wall units.
When it started, it didn't cover ducted outdoor units, multi-head outdoor units, or air-to-water, hydronic and pool heat pumps. We've seen a date of 1 July 2025 for extending it to multi-head units, but only from a second-hand source, so check that date before you rely on it.
So there are two rules with two different limits. The VEU one is 700, and it decides whether the job earns certificates. The import one is 750, and it decides what can legally come into the country.
Not sure which activity your job sits under?
Getting the activity and the scenario right is what sets the money, and you need to get it right before you quote, not after you install.
If you're looking at a job and the answer isn't obvious, ask Kevin.
Who this is for: small and medium HVAC contractors in Victoria. If you're a homeowner after a rebate or a repair, you need a licensed contractor, not us, and yours can point you the right way.
Related
- How many upgrades one address can ever claimOnce an address has had enough upgrades, Schedule 4 blocks any more claims there. The limit changes with the job type and whether the old unit came out.
- Seven activities that no longer earn certificatesGas space heating, evaporative coolers, underfloor insulation and four more, with the date each one stopped and the rule change that ended it.
- Activity 28, the gas ductwork rebate almost nobody claimsTake out the old gas heating ductwork, put new duct in to AS 4254, and there's a certificate in it. Here's what we know, and the figures we couldn't find.
- Activity 44 and the $10,000 commercial co-paymentThe commercial and industrial heat pump water heater activity, its $10,000 minimum co-payment, and why commercial HVAC upgrades now lean on the VEU.
Review date: 1 January 2027. Figures in this area change without much notice and this page carries some that will go stale. Every number above is dated and sourced so you can check it yourself. If you find something out of date here, tell us and we will fix it.