Water Heater Replacement Cost in Australia (2026)

If your hot water has died, the first question is usually 'how much is a new one?'. This guide gives you indicative Australian ranges and explains the three things that push the price up or down.

Typical price ranges (indicative)

As a rough guide in Australia: an electric storage tank replacement runs about $900–$2,200 installed; gas storage $1,200–$2,600; and a continuous-flow (tankless) system $1,500–$4,000, depending on capacity and fuel type. Heat-pump units sit higher. These are general indications to set your expectations — the final number depends on your home, not the sticker price.

What drives the price

Four factors move the total most: the unit size/capacity, the fuel type (electric, gas, heat-pump), whether pipework or venting must be changed, and your local labour rate. A like-for-like swap is cheapest; relocating the unit, upgrading the supply line, or adding an expansion valve adds real cost.

Tank vs tankless

Tank units are cheaper to buy and simple to replace but store hot water constantly (higher running cost). Tankless units are pricier up front, last longer, and save space — but need adequate gas or electric capacity and can cost more to install. Match the choice to your household size and energy plan, not just the purchase price.

How to get an accurate quote

The only way to know the real number is on-site. Tell the plumber the unit's location, your household size, and whether you prefer gas or electric — that lets them quote the job including any pipework, rather than a ballpark. Always get a written quote before work starts.