Victoria bans energy retailers’ “loyalty tax,” mandates Victorian Default Offer switch from July 01, 2026
Australia’s state of Victoria said it has banned energy retailers from imposing a so-called “loyalty tax” on long-term customers, taking effect immediately. From July 01, 2026, retailers must move customers who have been on an offer for more than four years onto the Victorian Default Offer (VDO), with penalties of up to $244,212 per breach. The state said the policy is expected to help tens of thousands of households save about $258 a year on average. The measure is a state-level regulatory action and is not tied to national energy companies or wholesale commodity pricing mechanisms.