For Australian households considering a new kitchen cooktop in 2026, the choice between induction and gas extends beyond culinary preference to significant differences in running costs and installation expenses. While gas has long been a favourite for its instant flame control, induction cooktops are now, on average, more economical to run across most Australian states, driven by evolving energy markets and increasing electricity efficiency.
This guide provides a comprehensive breakdown of the financial implications for both options, leveraging the latest 2026 data on energy prices, installation services, and government incentives.
Running Costs: A 2026 Australian Breakdown
The most significant factor in long-term cooktop ownership is the ongoing energy bill. The landscape for electricity and gas in Australia is dynamic, with wholesale electricity costs showing a downward trend in some regions, while gas prices continue to be influenced by global markets and domestic supply challenges.
Electricity vs. Gas Pricing Landscape (2026)
Electricity: The Australian Energy Regulator (AER) has indicated potential reductions in Default Market Offer (DMO) prices for 2026-27 across New South Wales, South East Queensland, and South Australia, ranging from 2.4% to 10.1% for residential customers. Victoria’s Default Offer (VDO) is also projected to decrease by an average of 3% for domestic customers in 2026-27, saving approximately $46 annually compared to 2025-26. These downward movements are primarily due to lower wholesale electricity costs.
Average residential electricity prices in Australia typically sit between 25-35 cents per kilowatt-hour (c/kWh), though market offers can be lower than DMO/VDO rates. Crucially, the new Solar Sharer Offer, introduced from 1 July 2026 in DMO regions (NSW, SE QLD, SA), provides three hours of free electricity usage (11 am-2 pm in NSW/SE QLD, 12 pm-3 pm in SA) for households with smart meters, regardless of whether they have solar panels. This presents a significant opportunity for induction users to minimise running costs.
Gas: In contrast, residential gas prices are experiencing upward pressure. While usage charges in some areas like Tasmania have seen a slight decrease (e.g., Aurora Energy’s usage charge at 5.4710 c/MJ from Feb 2026), daily supply charges are increasing. Average gas usage rates vary significantly by state, with South Australia and Tasmania seeing rates around 5.5 cents per megajoule (c/MJ), while Victoria and Queensland may be under 4 c/MJ. It’s important to remember that gas bills also include a fixed daily supply charge, which can add hundreds of dollars annually, irrespective of consumption.
Cooktop Efficiency and Usage Costs
Induction cooktops are highly efficient, converting approximately 90% of energy directly into heat in the cookware. A typical induction hob can draw between 1.5 kW and 3.7 kW per zone (with boost mode), or around 1.5 kWh per hour for a single burner at full power. Gas cooktops, while offering visual control, are less efficient, with significant heat loss to the surrounding air.
Let’s consider a hypothetical household that cooks for 45 minutes per day, using an average of 2.5 kW for induction or 25 MJ/hr for gas:
| Feature | Induction Cooktop (Estimated) | Gas Cooktop (Estimated) |
|---|---|---|
| Power/Energy Use | 2.5 kW (average during use) | 25 MJ/hr (average during use) |
| Daily Usage | 1.875 kWh (2.5 kW * 0.75 hr) | 18.75 MJ (25 MJ/hr * 0.75 hr) |
| Equivalent Energy | 1.875 kWh | ~5.2 kWh (18.75 MJ / 3.6 MJ/kWh) |
| Cost per unit | ~30 c/kWh (average retail) | ~4 c/MJ (VIC/QLD average) |
| Daily Running Cost | $0.56 (1.875 kWh * $0.30) | $0.75 (18.75 MJ * $0.04) |
| Annual Running Cost (Usage Only) | $204.40 | $273.75 |
| Annual Daily Supply Charge (Gas) | N/A | ~$365 (assuming $1/day) |
| Total Annual Cost | $204.40 | $638.75 |
“Households and small businesses on the Default Market Offer (DMO) could see lower electricity prices next financial year under the Australian Energy Regulator’s draft determination for 2026–27.”
Even with moderate gas prices, the fixed daily supply charge significantly increases the total annual cost, often making induction the cheaper option for ongoing use. This advantage is amplified for households with solar panels or those able to utilise the new Solar Sharer Offer. For more ways to save on your energy bills, consider reading our guide on Australia’s Top Energy-Efficient Home Upgrades 2026: Maximise ROI as Electricity Bills Soar This Winter.
Installation: What to Expect in 2026
Initial installation costs are where gas cooktops can sometimes hold an advantage, particularly if your home already has an existing gas line. However, the costs for new gas connections or electrical upgrades for induction are substantial.
Induction Cooktop Installation
Installing an induction cooktop typically requires a dedicated electrical circuit, often 32 Amps or 40 Amps, which may necessitate an upgrade to your home’s switchboard if it’s older or at capacity. Electricians in Australia charge between $80 and $150 per hour, with call-out fees ranging from $50 to $140. State hourly rates average around $105 in NSW and VIC, and $100 in QLD.
- Replacing an existing electric cooktop: If the existing wiring is sufficient, this can be relatively straightforward, costing $100 - $400 for labour.
- New installation or upgrade from gas: This is more complex. Running a new dedicated circuit from the switchboard to the kitchen can cost anywhere from $500 to $1,500, depending on the length of the run, complexity, and whether a switchboard upgrade (which can be $1,200 - $3,500) is also required.
Gas Cooktop Installation
Gas cooktop installation requires a licensed gasfitter, who typically charges between $100 and $200 per hour, plus a potential call-out fee. Hourly rates for gasfitters can be $70-$90 in NSW, VIC, and SA.
- Replacing an existing gas cooktop: This is the cheapest scenario, usually costing $150 - $400. Disconnecting the old unit and installing the new one.
- New gas connection (from scratch): If your home doesn’t have a gas line, extending one from the street to your kitchen is a major undertaking, costing between $1,200 and $5,000. This involves significant pipework and regulatory approvals.
- Disconnecting gas: If transitioning from gas, a gasfitter will need to cap the gas line, which can cost around $100 - $250 depending on complexity.
| Scenario | Induction Cooktop Installation (AUD) | Gas Cooktop Installation (AUD) |
|---|---|---|
| Replace existing electric | $100 - $400 | N/A |
| Replace existing gas | $500 - $1,500 (new circuit) | $150 - $400 |
| New installation (no prior) | $800 - $2,500+ (new circuit, potential switchboard upgrade) | $1,500 - $5,500+ (new gas line, cooktop install) |
Government Rebates and Incentives (2026)
While the universal federal energy bill relief of $150 ended in December 2025, some targeted state-based incentives remain. There are currently no direct federal or state rebates specifically for installing induction cooktops. However, broader electrification initiatives can indirectly support the switch.
- Victoria: The Victorian Energy Upgrades (VEU) program, extended until 2045, offers upfront discounts on a range of energy-efficient upgrades, including heat pump hot water systems, which can replace gas hot water. This encourages a move away from gas in general. From October 2026, eligible Victorian households can also access a ceiling insulation discount through VEU, saving around $1,500 on installation, which contributes to overall home energy efficiency. For more details, see our guide on Best Heat Pump Hot Water Systems in Australia 2026: Costs, Rebates & Buyer’s Guide.
- Queensland: Eligible Queensland households can receive an Electricity Rebate of $386.34 per year if they hold a Seniors Card, Pensioner Concession Card, Health Care Card, or certain DVA Veteran Gold Cards. There are also federal solar battery rebates, with current values at $330-$340 per usable kWh, though these will shift to a tiered model from May 1, 2026. These are beneficial for households opting for induction and solar power.
- NSW & South Australia: While direct cooktop rebates are not prominent, the DMO price reductions and the upcoming Solar Sharer Offer aim to lower electricity costs for consumers, indirectly favouring electric appliances.
It’s crucial to check with your state government’s energy department or an accredited provider for the latest eligibility criteria and available rebates, as these programs are subject to change.
Beyond the Bills: Performance and Lifestyle
Financial considerations are paramount, but the daily experience of cooking also plays a significant role in this decision.
Induction Cooktops:
- Speed & Control: Induction offers incredibly fast heating, often boiling water faster than gas. Temperature changes are instant and precise, comparable to gas, but with digital control.
- Safety: No open flame, reducing the risk of burns or gas leaks. The surface only heats where the pot touches, cooling quickly once removed. This is a major safety advantage, especially for families.
- Cleaning: The flat, smooth surface is exceptionally easy to clean, as spills don’t bake onto a hot element.
- Cookware: Requires induction-compatible cookware (magnetic base). Most modern stainless steel and cast iron pots are compatible.
Gas Cooktops:
- Visual Control: Many chefs prefer the visual feedback of a flame, allowing for intuitive adjustments.
- Cookware: Works with all types of cookware.
- Power Outages: Operates during power outages (though electronic ignition may not).
- Ventilation: Requires good ventilation to manage combustion by-products and heat, which can lead to higher long-term health risks if not properly managed.
- Cleaning: Grates and burner caps can be more challenging to clean.
Product Examples & Pricing (2026)
Prices for both cooktop types vary widely based on brand, size, features (e.g., bridge zones, power boost, wok burners), and retailer. Here are some indicative ranges for popular models in 2026:
| Cooktop Type | Indicative Price Range (AUD) | Example Brands (2026 Models) |
|---|---|---|
| Induction | $800 - $4,000+ | Bosch Serie |
| Gas | $350 - $4,000+ | Westinghouse WHG644SC, Electrolux EHG643BD, Smeg S604XGH |
Note: Specific model prices can fluctuate based on promotions and retailers. Always check current pricing.
Bottom Line
For Australian households in 2026, induction cooktops generally present a more cost-effective long-term solution due to lower running costs and increasing electricity affordability. While initial installation might be higher if significant electrical upgrades are needed, the ongoing savings, combined with superior performance, safety, and environmental benefits, often outweigh this upfront investment.
If you are building a new home or undertaking a major kitchen renovation, the argument for induction is particularly strong, as the electrical infrastructure can be integrated more efficiently. For those replacing an older cooktop, evaluate your existing gas connection versus your electrical capacity. The declining DMO/VDO electricity prices and new initiatives like the Solar Sharer Offer further solidify induction’s position as the smarter choice for both your wallet and the environment. Consider exploring How to Prepare Your Australian Fleet Depot for Megawatt Electric Truck Charging in 2026: A Complete Guide for more context on the broader shift to electrification.