How Much Does a Tankless Water Heater Cost in Australia?

In Australia, a tankless (instant) water heater typically costs between AUD $1,500 and $4,500 installed. The total price depends on the system type (electric or gas), household hot water demand, installation complexity, electrical or gas upgrades, and brand. Electric tankless systems are usually more affordable upfront, while gas models cost more but deliver higher flow rates for larger homes.

If the thought of a tankless water heater has crossed your mind, then I’m guessing the only thing holding you back is the big question: What is this really going to set me back by?

That’s fair.

Hot water is a non-negotiable requirement in Australian homes. It is used on a daily basis. It is also a vital purchase, unlike some others.

Short answer?

Tankless water heater costs vary widely here in Australia.

It depends on the type of system you choose, your energy setup, and the installation work you need.

Let’s unpack real prices, honest figures, and what you can expect from start to finish.

Understanding Tankless Water Heater Costs in Australia

Tankless systems heat water only when you turn on the tap.

There’s no big hot water tank sitting there heating water all day. That difference changes how the pricing works compared with traditional tanks.

In Australia, the tankless water heater Price is shaped by:

• The unit itself
• Installation labour
• Any upgrades your home needs

Most people notice right away that tankless units cost more upfront than tank systems. But cost isn’t just the purchase price; it’s also long-term savings and lifespan.

Average Tankless Water Heater Price in Australia

Let’s start to analyze these figures per component starting from the Unit Cost.

Generally speaking, a tankless water heater might vary from $1,500 to $5,500 in Australian dollars in terms of a tankless system’s total price in Australia to heat water in a residence.

But that’s not all.

Here are some real-world price points you might see:

🟩 Electric Mini Units: Around $750–$1,500 AUD for higher flow models. Basic under‑sink units can be really cheap, sometimes $60–$100 AUD, but these are usually for very small uses like a single sink.

🟩 Gas Units (e.g. Rinnai): Many gas continuous flow units can be found around $870–$990 AUD for the unit itself, depending on size and brand.

🟩 Premium Electric: A 3‑phase electric continuous flow system (like some Stiebel Eltron models designed for larger households) might cost around $1,440 AUD for the unit alone.

These figures give you a sense of how wide the range can be, depending on what you need.

How Much Does an Electric Tankless Water Heater Cost in Australia?

Electric tankless heaters are often the most affordable route if gas isn’t an option.

The cost of tankless electric water heaters in Australia often ranges from $1,500 to$3,000 AUD, though smaller point‑of‑use units can cost much less.

However, there’s an important detail here.

Many Australian homes require electrical upgrades to support tankless systems properly.

That may include additional circuitry, increased cabling, and/or a larger switchboard, which could cost $1,000 to $3,000 AUD, or possibly even higher, to your account.

Thus, although the appliance may be low-cost, the overall cost may increase when all is said and done. The electric ones may be ideal for a small living area, an apartment, or where no gas is available.

How Much Does a Gas Tankless Water Heater Cost in Australia?

Gas tankless systems generally cost more upfront but deliver stronger performance, especially for whole‑home requirements.

The gas tankless water heater cost for the unit alone often starts around $870 and can go higher depending on capacity and brand. Many popular units from major brands are priced in the ballpark of $800–$1,500 AUD for the device itself, before installation.

Gas models also need proper venting and sometimes gas line adjustments.

So the installation cost is usually higher. Gas systems work well for larger Australian homes or where several showers might be running at once without pressure loss.

Tankless Water Heater Installation Cost Explained

Installation is where prices really start to spread out.

The tankless water heater installation cost in Australia typically runs between $1,200 and $3,500 AUD.

But depending on complexities like electrical or gas upgrades, some whole‑home installs can go as high as $3,000 to $8,500+ AUD total (unit included).

Here are some typical figures you might see on supply and installation:

🟩 Basic Gas installation: Around $1,200–$1,950 AUD for supply and install of a decent 6‑star natural gas continuous flow unit.

🟩 Typical Gas/Electric installation: About $1,595–$1,805 AUD for a well‑known Rinnai gas unit installed with basic labour.

🟩 Whole‑Home Systems: Around $3,000–$8,500+ AUD, including professional installation for bigger units or in homes needing upgrades.

These figures include the unit side as well as the labour side of the installation, which, as said before, could form a big slice of the entire work.

Ongoing Operating and Maintenance Costs

 Once it’s already installed, tankless heaters are normally cheaper to run than traditional ones because they only operate when needed.

Particularly gas models have an added benefit in that they are less expensive to run than their electric counterparts in Australian context because the prices of gas are lower relative to the prices of retail electricity tariffs available in the country. 

Yearly servicing costs can vary from $150-300AUD or more, depending on the hardness of your water supply and available service tariffs.

Areas that have hard water might require a little more flushing to reduce scale buildup in heat exchange surfaces, which would maintain a high level of efficiency in operation.

Thus, in terms of running costs, this can again offset the original higher investment in the long run.

Tankless vs Tank Water Heater Cost Comparison

Comparing tankless vs tank water heater costs is almost like comparing apples and pears; they have different strengths.

Traditional tank water heaters usually cost $1,200 to $2,500 AUD installed, including unit and labour. They’re cheaper upfront and simpler to install.

Tankless systems usually run $3,000 to $8,500+ AUD installed, depending on size and complexity. But they last longer, often 20 years or more, and you don’t heat water you’re not using.

The lifespan of a tank is around 8 to 12 years before replacement is necessary. This implies that over the same period, a larger number of replacements would be needed. 

Thus, though tanks are inexpensive, being acquired, getting a tankless is the best option over an extended period.

Is a Tankless Water Heater Worth It in Australia?

So here is the important question: Is it really worth it to have a tankless hot water heater?

Well, I would say yes, certainly if you like hot water and are going to stay in your house long enough to really benefit from it .

It’s wonderful to have hot water always ready and waiting, no going out of hot water mid-shower!

 No big tank taking up space. Lower ongoing energy use.

These benefits can add up.

But if upfront cost matters more right now, or you only need hot water for a small household, a tank system can still make sense. It really comes down to your priorities and household patterns.

Factors That Can Increase or Reduce Your Final Cost

• Energy source availability
  Homes with existing gas lines tend to pay less to install gas tankless units. Where only electricity is available, electrical upgrades can increase costs.
  
• Condition of plumbing and wiring
  Older plumbing or undersized wiring can push installation work (and labour cost) higher. Newer homes usually have simpler installs.
  
• Household hot water demand
  Big families or homes with multiple bathrooms running at once often require higher flow rate systems, which raise the tankless water heater price.
  
• Installation access and location
  Installing a unit in a tight corner, under a deck, or in hard‑to‑reach spots increases labour time. Easier access keeps costs lower.
  

Final Cost Summary and Buyer Takeaways

Here’s the clear takeaway:

• Expect a total installed cost for a tankless system in Australia to range between $3,000 and $8,500+ AUD, depending on size, energy source, and installation needs.
• Electric mini units can be as low as $750–$1,500 AUD for higher flow models, while quality gas units often start around $870–$1,500 AUD for the unit itself.
• Supply and installation for typical systems usually fall between $1,200 and $1,950 AUD for basic gas installs, with more complex installs stretching higher

Either way, get a few quotes before you decide. Plumbers and installers often price differently, and that quote can make or break the deal.