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Which Victorian Energy Upgrades (VEU) activities cover HVAC work

Five VEU activities matter for HVAC work. Part 6 is space heating and cooling. Parts 1 and 3 are water heating. Part 28 is gas heating ductwork, and Part 44 is commercial heat pump water heaters. Part 48 is ceiling insulation, which sits next to HVAC work but isn't HVAC.

Space heating and cooling
Part 6the one most jobs use
Water heating
Parts 1 and 3residential
Gas heating ductwork
Part 28new duct to AS 4254
Commercial heat pump hot water
Part 44$10,000 minimum co-payment

Which activity number covers which job?

The regulations list each activity as a numbered Part. So when someone says "activity 6" and someone else says "Part 6", they mean the same thing.

Source: Victorian Energy Efficiency Target (VEET) Regulations 2018 v020, Schedule 2. Activities get added, paused and revoked all the time, so treat any list, this one included, as a snapshot. Check the Essential Services Commission (ESC) updates before you rely on it.
PartWhat it coversWho it's for
6Space heating and cooling. Reverse cycle air conditioners, categories 6A to 6HResidential and business
1 and 3Water heating, including heat pump water heatersResidential
28Take out the old gas heating ductwork and put new duct in to AS 4254Where there's existing ducted gas
44Commercial and industrial air source heat pump water heatersCommercial and industrial
48Ceiling insulation. Started 14 April 2026, $200 minimum co-paymentResidential, next to HVAC work

Part 6 covers most HVAC work and most of the money. It's also where nearly all the tricky bits are. It has eight categories, set by size and whether it's ducted, and eleven scenarios, set by what you're taking out. Both decide what a job is worth.

Common
mix-up

Activity 34 is lighting, not HVAC

You'll see activity 34 come up when people talk about HVAC eligibility. It's a lighting activity. So are 27 and 35.

If somebody is weighing up activity 6 against activity 34 for your job, one of those numbers is wrong, and it isn't 6. The ones that actually matter for HVAC are Part 6, Parts 1 and 3, Part 28 and Part 44.

It's a small thing, but it's the kind of mistake that gets copied from site to site until everyone believes it.

Which activity does my job sit under?

  1. Replacing or installing a reverse cycle system? Part 6.Then work out two things. The category comes from the capacity and whether it's ducted. The scenario comes from what you're taking out.
  2. Replacing a hot water system? Parts 1 or 3 for homes, Part 44 for commercial.The commercial one carries a $10,000 minimum co-payment, which makes it a very different conversation with the customer.
  3. Replacing ductwork on a gas heater? Part 28.It's rarely claimed, and the new duct has to be installed to AS 4254.
  4. Doing more than one of those on the same job?Check how many upgrades the address has already had before you quote. Past upgrades there can block a claim completely.

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.

Have a chat with Kevin

Kevin reads every one of these himself and calls back. No newsletter, no sales sequence.

Or call Kevin on 0408 624486

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.