In most Canberra suburbs you cannot install a new wood heater, but the rules vary by suburb and a lot of homeowners are unclear because the ACT Government has changed direction more than once. Existing fireplaces can stay, gas fireplaces are caught up in the broader gas phase-out, and electric and ethanol alternatives are now where most new fireplace projects land.

I'm Jeff Rentoule. I've been in the Canberra building industry for 19 years, the last 5 of those running Rentoule Projects, and few topics come up more often in client conversations than the fireplace question. Canberrans love a fireplace, and rightly so. Winter here is cold, real cold, and there's nothing like a wood fire when the frost is on the lawn. But the rules have moved, and confusion is now widespread. This is the plain English version of what's actually allowed in 2026, what's coming, and what your options are if you're planning a renovation or build.

What the ACT Government actually announced (and walked back)

To understand where we are now, you need a quick history.

In January 2023, the ACT Commissioner for Sustainability and the Environment released a report recommending the government phase out wood heaters from all ACT suburbs by 2045, ban new installations everywhere, and require removal before sale. The report concluded there is "no safe level of air pollution for human health" and that wood heaters had no place in Canberra's all-electric future.

In August 2023, the ACT Government agreed in principle to most of the recommendations. They committed to phasing out wood heaters in suburban Canberra by 2045 and extending the existing ban on new installations to more suburbs over time.

In September 2025, the ACT Legislative Assembly voted against a motion that would have started community consultation on the phase-out plan. The Climate Change Minister at the time described the earlier commitments as "in principle" rather than binding. This is the source of much of today's confusion. There is no firm regulatory phase-out timeline in place. The 2045 target exists as a policy statement but the path to get there is unclear.

The practical effect: existing suburb-specific bans remain in force, but a territory-wide ban or removal-on-sale rule has not been legislated.

What's allowed where right now (July 2026)

Wood heater installation is currently banned in:

  • Molonglo Valley (excluding Wright)
  • Dunlop
  • East O'Malley
  • Tuggeranong (added more recently)
  • Any new development area that has been gazetted with the restriction

Wood heater installation is currently permitted with approval in:

  • Most established Canberra suburbs in the inner north, inner south, Belconnen, Woden, and Gungahlin (subject to compliance with Australian Standards and an approved certified appliance)

You always need:

  • The wood heater to be a certified compliant model (AS/NZS 4012:2014 and AS/NZS 4013:2014, with emissions of 1.5 g/kg or less and 60% or greater thermal efficiency)
  • Installation in line with AS/NZS 2918 (clearances, flue, hearth)
  • Building Approval (BA) from a private certifier covering the installation
  • Sometimes development approval depending on flue height and external visibility

If you're in a suburb where new installations are banned, no amount of approval gets you around it. The restriction is at the planning level.

What about existing wood heaters?

If your home already has a working wood heater that was lawfully installed, you can keep using it. There is no current requirement to remove it on sale, despite the 2023 recommendation that this happen. That recommendation was not adopted in legislation.

You can also replace an existing wood heater with a new certified model in suburbs where new installations are permitted, provided you go through the approval process. In suburbs where new installations are banned, the rules are less clear and you should check directly with Access Canberra before committing.

The 2045 phase-out target, if it ever becomes binding regulation, would likely require removal of existing heaters before that date. Right now it's a policy statement, not law.

Gas fireplaces and the gas phase-out

Here's where it gets messier. The ACT is phasing out residential gas, with the goal of being all-electric by 2045. As part of that, new gas connections are no longer being approved in new builds and most major renovations. Existing gas connections can stay in service but cannot be expanded, and the trajectory is replacement with electric alternatives.

In practice for fireplaces, this means:

  • Existing gas fireplaces can stay and continue to be used. Replacing the unit (like-for-like) is currently permitted in most cases but the rules around this are tightening.
  • New gas fireplaces in new builds are no longer being permitted in most cases.
  • New gas fireplaces in renovations depend on whether the home has an existing gas connection and how the planning authority interprets the rules at the time. Increasingly the answer is no.

If you're planning a major renovation and a gas fireplace is on your list, have the conversation with your builder and certifier early. The default assumption now is all-electric.

The alternatives that actually work in Canberra

Three options have replaced wood and gas fireplaces in most of our recent projects.

Electric flame-effect fireplaces

The technology has improved dramatically. The current generation of high-end electric fireplaces from brands like Dimplex Opti-V, Modern Flames, and EcoSmart create flame illusions that, in person, are convincing. They throw no real heat by themselves but most include built-in resistance heating elements that warm a room reasonably well.

  • Approval: not required beyond Building Approval, treated as an appliance not a combustion device
  • Running cost: high if used as primary heating, moderate as ambience
  • Aesthetic: very good at the premium end, looks like a real fire
  • Cost installed: $4,000 to $15,000 depending on model and built-in cabinetry

Bioethanol (alcohol-fuelled) fireplaces

These burn liquid ethanol, produce a real flame, and generate genuine heat without a flue. No emissions, no smoke, no chimney. They're regulated under the ACCC's Decorative Alcohol Fuelled Devices mandatory standard and must be certified.

  • Approval: not a combustion appliance under building codes, no wood heater rules apply
  • Running cost: ethanol fuel is roughly $5 to $10 per hour of burn time
  • Aesthetic: real flame, very atmospheric
  • Cost installed: $3,000 to $20,000 for premium built-in units
  • Safety: the mandatory standard exists because of incidents. Buy certified, install professionally, never refuel while lit

Heat pump with built-in feature wall

Not a fireplace, but worth flagging because it's where most of our clients land when they prioritise heating performance over flame aesthetics. A high-end reverse cycle unit hidden behind a designed feature wall, with a separate built-in flame element if desired. Best heating efficiency by a large margin, lowest running cost, no compliance issues at all.

What this means if you're planning a renovation

If a fireplace is on your wishlist, here's how to think about it.

Step 1. Check whether your suburb has a wood heater installation ban. If yes, wood is off the table for a new installation.

Step 2. If you have an existing wood heater you love and want to keep, that's fine. Note that it can affect EER ratings on a renovation if not insulated/sealed properly, so factor in airtightness work. Our EER ratings guide covers the interaction in more detail.

Step 3. If you want a fireplace feature in a new build or extension, default to electric or bioethanol. Both are easier to approve, more flexible to place, and align with where the ACT is heading.

Step 4. Have the conversation with your builder at design stage. The flue, hearth, structural support and ventilation all need to be designed in from the outset, not retrofitted later. Our builder selection guide and DA approval guide both cover this in more detail.

Frequently asked questions

Can I rip out my wood heater during a renovation and put a better one in?

In permitted Canberra suburbs, yes, with approval. In banned suburbs (Molonglo Valley excluding Wright, Dunlop, East O'Malley, Tuggeranong and gazetted new development areas) you cannot install a replacement wood heater, but you can remove the existing one freely.

Will I have to remove my wood heater before I sell my house in Canberra?

Not currently. The 2023 recommendation that removal be required at point of sale was not adopted in ACT legislation. The 2045 phase-out target may eventually translate to removal requirements but there is no firm date or binding rule yet.

I'm building a new home in Wright or Dunlop or Molonglo or Tuggeranong. Can I have a wood fireplace?

No. New wood heater installations are banned in those suburbs. You will need to look at certified electric flame-effect, bioethanol, or a reverse cycle heat pump alternative if a fireplace feature is important to your design.

Can I install a new gas fireplace in my Canberra renovation?

Probably not, and increasingly definitely not. The ACT is phasing out residential gas with a target of all-electric by 2045. New gas connections are no longer being approved in new builds or most major renovations. Plan for electric or bioethanol from the outset.

Are outdoor fire pits and pizza ovens still allowed in Canberra?

Yes. The wood heater rules apply only to indoor heating appliances. Outdoor wood fire pits, pizza ovens, and meat smokers are unaffected by the ACT wood heater bans and phase-out policy.

My take

I love a real fire as much as anyone. We have a wood heater at home and use it most winter nights. But for new projects in 2026, I'm honest with clients: the regulatory direction is clear even if the timing isn't, and the bioethanol and electric flame technology has improved to the point where the trade-off is much smaller than it was five years ago. Building a wood-heater-ready home now is also building in a removal cost later if the phase-out becomes binding.

If you're renovating or building and want help thinking through the fireplace decision in the context of your wider project, the fastest path is a project consultation. Coffee's on me.