The short answer
The federal government's help is finance, not a rebate: the Household Energy Upgrades Fund offers low-interest green loans through participating banks and lenders. The rebates come from the states:
- NSW: up to $550 for installing a new 6kW air conditioner, or up to $560 for replacing an old one with a 6kW split system, under the Energy Savings Scheme.
- Victoria: up to $1,610 for replacing a non-ducted gas space heater with an efficient reverse cycle air conditioner, or up to $5,530 for replacing a ducted gas heater (Victorian Energy Upgrades).
- ACT: 50% of the cost, up to $2,500, for homeowners with an eligible concession card, and low-interest loans.
- South Australia: free or discounted high efficiency air conditioning upgrades from energy retailers under REPS.
- Queensland and Tasmania: the state programs (Climate Smart Energy Savers and the Energy Saver Loan Scheme) have closed.
NSW air conditioner rebate
OpenUnder the NSW Energy Savings Scheme, eligible households can get an upfront discount of up to $550 for installing a new 6kW air conditioner, or up to $560 for replacing an old one with a 6kW split system.
OpenHomeowners and landlords with a combined household income of up to $210,000 can also get a zero-interest Home Energy Saver loan of up to $15,000 for a reverse cycle air conditioner.
Victoria: Victorian Energy Upgrades
OpenHouseholds can get a discount of up to $1,610 for replacing a non-ducted gas space heater with an efficient reverse cycle air conditioner, and up to $5,530 for replacing a ducted gas heater. All Victorian households and businesses can get it, including rentals, and any system being replaced must be more than 2 years old.
ACT rebates and loans
OpenACT homeowners with an eligible concession card can get 50% of the cost, up to $2,500, for reverse cycle heating and cooling. Under the Sustainable Household Scheme, homeowners can borrow $2,000 to $20,000 at 3% interest over up to 10 years for electric heating and cooling.
Other states
| State | What is available | Status |
|---|---|---|
| South Australia | Free or discounted high efficiency air conditioning upgrades from energy retailers under REPS. | OpenOpen |
| WA | The Air Conditioning Rebate subsidises the energy bills of eligible customers who live in high heat discomfort areas. It helps with running costs, not the purchase. | OpenOpen |
| Queensland | The Climate Smart Energy Savers rebate, which included air conditioners, has closed. | ClosedClosed |
| Tasmania | The Energy Saver Loan Scheme (interest-free loans of up to $10,000) closed on 1 September 2025. | ClosedClosed |
| Federal | The Household Energy Upgrades Fund offers low-interest green loans through participating lenders. It is finance, not a rebate. | OpenOpen |
What a new air conditioner costs
Supplied and installed prices from our air conditioning cost guide:
- Split system 5 kW (supply + install): $1,800 to $3,500
- Split system 7 kW (supply + install): $2,200 to $4,500
- Ducted system (basic): $8,000 to $14,000
Ask each installer which rebates and discounts their price already includes.
Frequently asked questions
Is there a government rebate for air conditioners?
Not federally: the Household Energy Upgrades Fund offers low-interest loans instead. NSW, Victoria, the ACT (for concession card holders) and South Australian energy retailers offer rebates or discounts.
How much is the NSW air conditioner rebate?
Up to $550 for installing a new 6kW air conditioner, or up to $560 for replacing an old one with a 6kW split system, under the NSW Energy Savings Scheme.
What is the Victorian air conditioner rebate?
Victorian Energy Upgrades takes up to $1,610 off replacing a non-ducted gas space heater with an efficient reverse cycle air conditioner, and up to $5,530 off replacing a ducted gas heater.
Can renters get the Victorian heating and cooling discount?
Yes. All Victorian households and businesses can get it, including rentals, as long as any system being replaced is more than 2 years old.
Is there an air conditioner rebate in Queensland?
The Climate Smart Energy Savers rebate, which included air conditioners, has closed.
Compare quotes from local air conditioning installers, and ask which rebates and discounts each price already includes.
Get air conditioning quotes →Sources
Rebate rules, amounts and dates change, and every program has its own eligibility rules - confirm with the program below before you sign a quote. Checked against these pages in October 2026:
- Home Energy Support: Rebates for Homeowners - Climate Choices (climatechoices.act.gov.au) · www.climatechoices.act.gov.au/policy-programs/home-energy-support-rebates-for-ho
- Sustainable Household Scheme - Climate Choices (climatechoices.act.gov.au) · www.climatechoices.act.gov.au/policy-programs/sustainable-household-scheme
- Reverse-cycle air conditioners | NSW Climate and Energy Action (energy.nsw.gov.au) · www.energy.nsw.gov.au/households/upgrades/air-conditioners
- Household Energy Upgrades Fund - DCCEEW (dcceew.gov.au) · www.dcceew.gov.au/energy/programs/household-energy-upgrades-fund
- Air conditioner upgrade incentive | NSW Climate and Energy Action (energy.nsw.gov.au) · www.energy.nsw.gov.au/households/grants-rebates/household-energy-saving-upgrades
- Home Energy Saver | NSW Climate and Energy Action (energy.nsw.gov.au) · www.energy.nsw.gov.au/households/grants-rebates/home-energy-saver
- energy.nsw.gov.au (energy.nsw.gov.au) · www.energy.nsw.gov.au/sites/default/files/2026-08/Home-Energy-Saver-Loans-guidel
- More Queenslanders set to benefit with additional funding from key cost-cutting program - Ministerial Media Statements (statements.qld.gov.au) · statements.qld.gov.au/statements/100109
- Energy saving rebates | Energy & Mining (web.archive.org) · web.archive.org/web/20260103103714/https://www.energymining.sa.gov.au/consumers/
- The Energy Saver Loan Scheme is Now Closed | ReCFIT (web.archive.org) · web.archive.org/web/20260909165112/https://www.recfit.tas.gov.au/get_involved/ne
- Tasmania's Energy Saver Loan Scheme | ReCFIT (web.archive.org) · web.archive.org/web/20260215083840/https://www.recfit.tas.gov.au/grants_programs
- Heating and cooling discounts (web.archive.org) · web.archive.org/web/20260928112111/https://www.energy.vic.gov.au/victorian-energ
- Victorian Energy Upgrades program | Essential Services Commission (esc.vic.gov.au) · www.esc.vic.gov.au/victorian-energy-upgrades-program
- Rebates and assistance (energy.gov.au) · www.energy.gov.au/rebates?field_audience_target_id=616&field_rebate_location_tar