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Continuous Flow Hot Water

Continuous Flow Hot Water near you

Tankless water heater is the American name for it. In Australia the same appliance is called a continuous flow or instantaneous hot water system, and those are the words used by the trade, by suppliers and by the National Construction Code, which describes a gas or LPG water heater as being either instantaneous, continuous flow or storage. If you search for a tankless system here you will find imported marketing rather than a local installer, so it is worth switching vocabulary before you start ringing around.

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This type of work often has to be done by a licensed or certified trade. Ask to see licences and proof of insurance before work starts.
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The principle is simple enough: instead of keeping a tank of water hot around the clock, the unit heats water only as it flows through, so it runs when a tap is opened and stops when it closes. That removes the standing heat loss of a stored tank and removes any limit on how long a shower can last, and it introduces a different constraint in its place. The unit can only heat so much water per minute, so the question stops being how many litres you have stored and becomes how many outlets can run at once.

It is regulated work, and for gas units it is regulated twice. Plumbing is licensed in every state and territory, gasfitting is a separate licence class with its own legal definition, and the heated water requirements of the Code apply to what is delivered at the fixtures no matter which type of unit produced it.

Continuous flow systems available in Australia

  • Gas continuous flow running on natural gas, the most common form, normally mounted externally on a wall so that flueing and ventilation are straightforward.
  • Gas continuous flow running on LPG, used where there is no reticulated natural gas, with the same appliance requirements plus the bottle installation and changeover arrangement.
  • Internally installed gas units, which are possible but bring flue routing, clearances and ventilation requirements that an external installation avoids.
  • Electric instantaneous units, which the Code recognises separately, including an electric instantaneous water heater having a water storage capacity no greater than one litre and a total electrical input no greater than 15.0 kW.
  • Single-point electric units serving one outlet, often used for a remote laundry tub, a bar sink or an outbuilding far from the main system.
  • Continuous flow units used as the booster on a solar heated water service, so the boost runs only when the collectors have not done the job.
  • Multiple units manifolded together to serve a household whose peak demand exceeds what one unit can deliver.

Continuous flow against a storage system

The honest comparison is about demand patterns rather than about which technology is better. A storage system holds a fixed volume that has been heated in advance, so it copes easily with several outlets at once and then needs time to recover once it is drained. A continuous flow unit has no reserve at all and instead has a rate: it will run a shower indefinitely, but its output is shared among whatever is open at the same time, which is why a second shower or a filling laundry trough can leave the first one cooler.

That rate is set by how much the unit can raise the temperature of the water passing through it, and incoming water is coldest in the middle of winter, in June, July and August. A unit sized against summer performance will disappoint in the weeks when it matters, and the effect is more pronounced the further south the house is. Sizing is therefore about the household's simultaneous demand at the coldest time of year rather than its average use.

There is also a difference in how each system relates to the Code's Legionella requirements, and it is worth understanding rather than repeating as a slogan. The Code requires heated water to be stored and delivered under conditions which avoid the likelihood of Legionella growth, and its verification method for storage works on time at temperature: water subjected to at least 32 minutes at 60 °C, 2 minutes at 66 °C, or 1 second at 70 °C or greater, within 7 days before it leaves the outlet. Those exposure periods are about stored water. A unit that holds no meaningful volume is a different proposition, which is one genuine advantage of heating on demand, while the delivery temperature limits at the fixtures apply either way.

What a compliant continuous flow installation includes

The supply feeding the unit is where most of the real work sits, and it is the part a like-for-like quote can quietly assume. A gas continuous flow unit consumes gas at a much higher rate while running than a gas storage unit does, so the existing gas line, meter and regulator have to be capable of delivering that rate to the appliance at the required pressure. Undersized gas supply is one of the more common reasons a correctly chosen unit underperforms after installation, and it is a question to ask at quoting stage rather than after the first cold shower.

Then there is the appliance position: clearances from windows, openings and boundaries, the flue arrangement for any internal installation, the water connections, an isolating valve so the unit can be serviced, and a discharge arrangement for any relief device the system requires. The Code's pressure relief and temperature limitation requirement is expressed as relieving pressure so that the maximum rated working pressure, or 1400 kPa, whichever is the lesser, is not exceeded, and limiting water temperatures to a maximum of 99 °C.

Finally the delivery temperature has to be right at the fixtures, not just at the appliance. The Code limits the delivery temperature of heated water at the outlet of each sanitary fixture to not more than 50 °C in ordinary cases, and not more than 45 °C in settings such as the residential parts of aged care buildings, patient care areas in health-care buildings, the parts of early childhood centres and primary or secondary schools used by children, and designated accessible facilities, with the requirement applying to heated water installations intended for personal hygiene. Where a temperature control device is used to achieve that, the required maximum delivery temperature must be achieved in accordance with AS/NZS 3500.4, and thermostatic mixing valve work must comply with AS 4032.3.

Two licences, not one: plumbing and gasfitting

Gasfitting is its own licence class in Australia, separate from plumbing, and for a gas continuous flow unit that distinction is the whole point. New South Wales requires the right licence or certificate before you do any plumbing, draining or gasfitting work, regardless of the cost of the work and regardless of whether the property is residential, commercial or industrial, and it takes the definition of gasfitting work from the Gas Supply Act 1996: the installation, alteration, extension or repair of a gas installation, work on any flue, connecting or disconnecting a gas installation to or from a gas supply point, and connecting or disconnecting a gas appliance. LPG work is separately categorised again, with LP gasfitting restricted to installations carrying liquefied petroleum gas in vapour phase at pressures not exceeding 150 kilopascals, and advanced LP gasfitting covering LPG without that restriction.

The practical consequence is that one person may not be entitled to do the whole job. Ask at quoting stage who is doing the water side, who is doing the gas side, whether they hold the relevant categories and, for LPG, whether they hold the right restricted or advanced category. Then ask what each will issue when the work is finished.

The paperwork varies by state and it is specific about water heaters. Queensland lists twelve categories of notifiable work in schedule 1 of the Plumbing and Drainage Regulation 2019, and two apply squarely here: work necessary for installing, replacing or removing a water heater, and work necessary for installing, replacing or removing a temperature control device, each for an existing building or an extension or structure for an existing class 1 building, registered with the QBCC on a Form 4 or 4a. Western Australia is blunter still: while it treats much like-for-like repair as minor plumbing work, replacing a water heater is one of only two exceptions that automatically default to major plumbing work in all cases, which brings the notice of intention and certificate of compliance requirements with it. Victoria allows plumbing work only by a plumber with current registration or a licence, or an apprentice.

What goes wrong with continuous flow systems

  • Water that runs hot, then cold, then hot again at the start of a shower, the effect of the slug of cooled water sitting in the pipe between the unit and the tap.
  • The unit not firing at all on a very low flow, because a minimum flow rate is needed to start it, which is why a barely opened tap can run cold.
  • Output falling away in June and July, when incoming water is at its coldest and the unit has to work hardest to reach the same delivery temperature.
  • Temperature dropping when a second outlet is opened, which is a sizing or simultaneous demand issue rather than a fault in the appliance.
  • Ignition faults, flame failure or a unit that will not stay lit, which is gasfitting territory rather than something to reset repeatedly.
  • Scale building up inside the heat exchanger where water is hard, reducing output and eventually causing the unit to fault.
  • Water flow sensor or control board faults, which typically present as a unit that ignores a tap being opened.
  • Flue or ventilation problems on an internally installed unit, which are a safety matter and not something to investigate yourself.
  • An undersized gas supply revealed only under real demand, so the unit performs on a single tap and fails to hold temperature under load.

Keeping a continuous flow unit working

  • Have the unit serviced at the interval the manufacturer states, since these are combustion appliances with controls rather than a simple tank with an element.
  • Keep the area around an externally mounted unit clear of vegetation, stored goods and anything that could obstruct its ventilation or flue.
  • Have the relief and temperature control arrangements checked as part of a service rather than assuming they are fine because hot water still arrives.
  • Raise scale with your plumber where the water is hard, since descaling the heat exchanger on schedule is cheaper than replacing it.
  • Have any temperature control device checked, because it is what holds the delivered temperature at the fixtures within the limits the Code sets.
  • Treat a unit that repeatedly fails to ignite as a job for a licensed gasfitter instead of resetting it each time.
  • Note the model and installation date somewhere you can find it, so a fault call starts with facts rather than guesswork.
  • After a storm or an outage, check whether an electrically controlled unit has simply lost power before assuming it has failed.

What drives the cost of a continuous flow installation

  • Whether you are replacing an existing continuous flow unit or converting from a storage system, which are very different scopes.
  • Whether the existing gas supply, meter and regulator can deliver the rate the new appliance needs, or have to be upgraded.
  • The unit's output rating, since sizing for simultaneous outlets in midwinter costs more than sizing for a single shower.
  • Whether the unit is mounted externally or internally, since an internal installation brings flueing, clearances and ventilation requirements.
  • Whether the appliance stays in the same position, since relocating means new water and gas runs and a new discharge arrangement.
  • Bringing the installation up to current requirements, including temperature control at the fixtures and relief discharge.
  • Whether the job needs both a licensed plumber and a licensed gasfitter, and for LPG whether the right restricted or advanced category is required.
  • Decommissioning, removal and disposal of the old unit, and making good the wall or base it sat on.
  • Whether this is a planned replacement or an emergency after a failure, which affects both availability and what is fitted.

Certificates, consumer guarantees and how LokalMatch fits in

Collect the paperwork while the installer is still there. That means the invoice with the scope described rather than just a total, the certificate or notification your state requires for the plumbing work, the separate evidence for the gasfitting where gas was involved, the product documentation with the model and serial number, and the WaterMark certification details where the product type requires certification. Photograph the installation, the connections and the data plate before anything is boxed in or the unit is mounted out of reach.

An installation is both a supply of goods and a supply of services, and the Australian Consumer Law guarantees both. Products must be of acceptable quality. Services must be carried out with an acceptable level of care and skill, be fit for any purpose you made known, and be supplied within a reasonable time where none was agreed. Where a problem with the service is minor, the business must fix it free of charge and the business chooses the remedy. Where it is major, which includes work creating an unsafe situation or work that cannot be used for the purpose you made clear and cannot easily be fixed within a reasonable time, you choose between cancelling for a refund and keeping the agreement at a reduced price. Telling you to take it up with the manufacturer is not an answer to an installation fault.

LokalMatch handles the introduction and nothing else. You describe the job once, with your postcode, whether you have gas or are considering electric, what system is there now and whether it has already failed, and plumbing and gasfitting businesses covering your area contact you directly. Those businesses pay LokalMatch for the requests they receive. LokalMatch does not install or repair hot water systems, does not set or quote prices, and does not vet, rank or recommend any business, so checking each licence category on your state register and comparing what the quotes actually include is still your work.

Continuous Flow Hot Water: frequently asked questions

What do Australians call a tankless water heater?

A continuous flow or instantaneous hot water system. Tankless is the American term, and while people will understand you, suppliers and installers here use continuous flow, and the National Construction Code refers to a gas or LPG water heater as instantaneous, continuous flow or storage. Searching with the local words will find local installers and local products rather than imported marketing.

Will a continuous flow system really never run out of hot water?

It will not run out over time, but it can run short at any given moment. There is no stored volume to exhaust, so a single shower can run as long as you like. What is limited is the rate: the unit can only heat so much water per minute, shared between whatever outlets are open, and it has to work hardest in June and July when incoming water is coldest. Two showers at once on an undersized unit is where households notice.

Do I need a gasfitter as well as a plumber?

For a gas unit, yes. Gasfitting is a separate licence class with its own legal definition, and in New South Wales it is drawn from the Gas Supply Act 1996, covering the installation, alteration, extension or repair of a gas installation, work on flues, and connecting or disconnecting a gas appliance. LPG is categorised separately again. Ask who holds which category before the work starts, and what each will issue when it is finished.

Why does my shower go hot, then cold, then hot again?

That is the slug of water that cooled in the pipe between the unit and the tap since the last time hot water was drawn, arriving before the newly heated water reaches you. It is more noticeable the further the unit is from the bathroom. A related symptom is the unit not firing at all when a tap is barely opened, because a minimum flow is needed to start it. Persistent temperature swings under normal flow are worth having looked at.

Can the installer set my hot water hotter than the Code allows?

Not at the fixtures used for personal hygiene. The Code limits the delivery temperature of heated water at the outlet of each sanitary fixture to not more than 50 °C in ordinary cases, and not more than 45 °C in settings such as the residential parts of aged care buildings, patient care areas, parts of early childhood centres and schools used by children, and designated accessible facilities. Where a temperature control device achieves that, it must do so in accordance with AS/NZS 3500.4.

Will replacing my hot water system generate a certificate?

It should. In Queensland, installing, replacing or removing a water heater is a category of notifiable work, as is installing, replacing or removing a temperature control device, both registered with the QBCC on a Form 4 or 4a. Western Australia treats replacing a water heater as one of two exceptions that automatically default to major plumbing work in all cases, bringing its notice of intention and certificate of compliance requirements with it. Ask which applies and keep your copy.

Is an electric instantaneous unit an option instead of gas?

It can be, and the Code recognises the type, including an electric instantaneous water heater with a water storage capacity no greater than one litre and a total electrical input no greater than 15.0 kW. The constraint is electrical rather than gas: the unit needs a supply and switchboard capacity to match, and the electrical work is licensed in its own right. Single-point electric units are common for a remote tub or an outbuilding where running gas would be impractical.

Sources

  1. National Construction Code Volume Three, Part B2 Heated water services
  2. NSW Government: Plumbing, draining and gasfitting work
  3. QBCC: Categories of notifiable work
  4. Government of Western Australia: Information for licensed plumbers
  5. Government of Western Australia: Plumbers licensing
  6. Victorian plumbing regulator: Plumbing registration and licensing
  7. WaterMark Certification Scheme: What is WaterMark?
  8. ACCC: Consumer rights and guarantees
  9. ACCC: Repair, replace, refund, cancel

Written by the LokalMatch editorial team. Last reviewed 14 September 2026. How we write and check our guides

What affects the cost of tankless water heater

Prices depend on the details of your project. We only publish price ranges when they’re backed by real LokalMatch quote data or reliable sources. Until then, here’s what usually changes the price:

  • Type of problem and how easy it is to find
  • Access to pipes behind walls, under floors or underground
  • Parts and fixtures chosen
  • Age and material of the existing pipes
  • Emergency, evening or weekend service
  • Permits and inspections, where required

How to compare plumbers before you hire

  • Hire a plumber who is licensed for this work in your area, especially for gas water heaters, sewer lines and new plumbing.
  • Ask whether they charge a flat rate or by the hour, and what the call-out fee covers.
  • For leaks and drain problems, choose someone who explains the cause and doesn't only clear the symptom.
  • Get the scope in writing for larger jobs such as a water heater, sewer repair or re-piping.
  • If it's urgent, ask how soon they can arrive and whether after-hours rates apply.

Questions to ask plumbers before you hire

  • Are you licensed for plumbing work in my area?
  • Do you charge a flat rate or by the hour, and is there a call-out fee?
  • What do you think is causing the problem?
  • Will this work need a permit or an inspection, and who will arrange it?
  • Will you need to open walls, floors or the yard to reach the problem?
  • What warranty do you offer on parts and labour?

When to call a pro for tankless water heater

  • An active leak: shut off the main water valve if you can reach it safely, then call a plumber.
  • Sewage backing up into drains or the basement
  • No hot water, or water pooling around the water heater
  • Pipes that may have frozen during a cold snap

Tankless water heater permits and local rules

Some tankless water heater work needs a permit or has to meet local bylaws. Rules vary by municipality, so ask your pro whether a permit is needed and who will apply for it — and check with your city or town if you’re unsure.

Permits and licensing

Seasonal maintenance

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