Residential and Commercial Gas Connections
Ms ABIGAIL BOYD (14:33): I move:
(1)That this House notes that:
(a)in June 2025, the Victorian Labor Government announced electrification and energy efficiency reforms, including:
(i)a mandate for all new residential homes, most commercial buildings and government buildings including hospitals and schools to be all-electric from 1 January 2027;
(ii)requirements for existing gas hot water systems in residential buildings to be replaced with electric appliances at end-of-life; and
(iii)setting minimum energy efficiency standards for rental properties and public housing, including a ban on replacement gas heaters or hot water systems.
(b)in June 2025, the City of Sydney Council became the latest New South Wales council to mandate electrification in new residential developments from 1 January 2026, a move unanimously supported by Labor, Liberal, Independent and Greens councillors and backed by the Property Council of Australia, the Owners Corporation Network of Australia and Asthma Australia;
(c)other councils that have implemented electrification mandates include the City of Canada Bay, City of Canterbury‑Bankstown, Hornsby Shire Council, Lane Cove Council, City of Newcastle, Waverley Council and City of Parramatta, and councils in the process of exploring or developing electrification changes include North Sydney Council, Inner West Council, Blue Mountains City Council, City of Ryde and Wagga Wagga City Council; and
(d)according to the 2024 Annual Report Net Zero Commission:
(i)New South Wales is not on track to meet emission reduction targets, and the built environment sector is the worst performer, having nearly doubled greenhouse gas emissions between 2005 and 2022 while all other sectors have reduced theirs; and
(ii)compared to other jurisdictions "the New South Wales Government currently has neither regulations nor targets to drive building electrification. Unlike Victoria and the Australian Capital Territory, New South Wales has not placed restrictions on gas connections to new homes or developments".
(2)That this House further notes analysis conducted by the Energy Efficiency Council which shows just how much gas can be freed up through efficiency and electrification, which will directly drive down gas prices and supply shortfalls for industries in difficult to abate sectors and who are struggling with their power bills.
(3)That this House congratulates the Victorian Government, the Australian Capital Territory Government and various New South Wales councils for taking necessary action to transition households and businesses from gas and electrify everything.
(4)That this House calls on the Government to follow the lead of the Victorian Labor Government and Australian Capital Territory Government, as well as community leaders in councils across New South Wales, to ban new gas connections for residential and commercial developments and require higher standards of energy efficiency for rentals, to protect health and climate.
Gas is a polluting fossil fuel, and one of the leading causes of the climate crisis. Every day that we continue to extract, process and burn gas, we are overheating our planet and driving more frequent and intense catastrophic climate disasters. Study after study and common sense have proven that electrifying all new homes in New South Wales is one of the most effective ways to cut emissions. We can do this by getting off gas and getting more renewables online, like wind and solar, through faster and fairer deployment of large‑scale projects.
In its 2024 annual report, the Net Zero Commission highlighted New South Wales' lack of progress in pursuing ambitious electrification policies compared to other jurisdictions like the European Union, Victoria and the Australian Capital Territory. The Net Zero Commission noted that the New South Wales Government currently has neither regulations nor targets to drive building electrification and has not placed restrictions on gas connections to new homes or developments. Instead, the New South Wales Government's current policy initiatives introduced in 2022 merely encourage but not mandate large new buildings to be all‑electric, along with some subsidies through programs like the Energy Savings Scheme. As the world electrifies everything, New South Wales households stuck on gas will be locked into increasingly expensive energy bills, and more and more people will be forced into energy poverty. Low‑income households, regional households and renters will inevitably bear the brunt if we do not stop building new gas connections and start helping households make the switch.
We need to invest in the rollout of household energy efficiency upgrades that prioritise difficult to electrify households, so that no‑one is left behind in the process. A just and equitable energy transition means making sure no‑one is left behind and no‑one bears the brunt of irresponsible government inaction. More and more councils are taking charge and leveraging their powers through the planning system to electrify communities with gas‑free, all‑electric new homes and businesses. The City of Sydney council recently became the latest New South Wales council to mandate electrification in new residential developments from 1 January 2026—a move led by Greens councillors. This was unanimously supported by Labor, Liberal, Independent and Greens councillors, and has since been publicly backed and commended by the Property Council of Australia, the Owners Corporation Network of Australia Ltd, Asthma Australia and other peak bodies for health, housing and environmental matters. The national policy director for the Property Council of Australia, Frankie Muskovic, said of the changes:
This is a clear step towards cleaner, cheaper, all‑electric buildings and it's what the future demands – we support it.
The City of Sydney is showing leadership here, giving developers clarity and sending the right signal to the market. Families want homes that are cheaper to run and the shift away from gas will help deliver that.
Every new building built with gas today is one that will need to be upgraded later at greater cost, so targeting new buildings first, where the change is easier and cost effective to make is a no-brainer.
Meanwhile, the Australian Capital Territory is leading the nation in decarbonising and fast‑tracking clean energy generation thanks to the foundations laid by the former Labor‑Greens Government. Since 2020, the ACT has been 100 per cent powered by renewables, which has given Canberrans some of the lowest energy bills in the country. In Victoria, the Labor Allan Government unveiled a suite of home electrification and energy efficiency reforms last month, which build on the Victorian Government's Gas Substitution Roadmap. Under those changes, all new residential homes, most commercial buildings and government buildings, including hospitals and schools, will be required to be all‑electric from 1 January 2027. Households will also be required to replace existing gas hot water systems with electric appliances at the end of their life, and renters will benefit from minimum energy efficiency standards for rental properties and public housing.
While these changes are not perfect, and our Victorian Greens colleagues have called for the Allan Government to take even more ambitious leaps to electrify the State and accelerate energy efficiency upgrades for vulnerable households, they are a necessary step forward that should be commended. The Victorian Government's plan has been analysed by the Energy Efficiency Council. It found that electrification of Victoria's buildings could free up an average of 80 petajoules a year through to 2035 to support industries impacted by high prices and gas supply shortfalls. Electrification will drive down not just household energy prices but the energy prices of industry and business as well. Claims of gas shortfalls fall flat in the face of this fact. We do not need to dig or drill more gas; we need to be smart with the way we use it, with electrification and efficiency improvements delivering climate and economic benefits across society from households to industry.
But it is not just climate and financial benefits that are achieved by getting off gas. There is increasing evidence that pollution from gas stoves is responsible for one in eight, or 12.3 per cent, of current childhood asthma cases. A child living with gas cooking in their home faces a similar risk of asthma to a child living with household cigarette smoke. We must start building healthier and more energy‑efficient buildings. Doing so will fast‑track our transition, keep us moving with the times and ensure that new builds meet future energy standards. Gas has no place in our future clean, green energy mix. It is time for the Government to take charge of the transition and set a clear pathway towards electrifying everything, building by building and suburb by suburb.
The Hon. PENNY SHARPE (Minister for Climate Change, Minister for Energy, Minister for the Environment, and Minister for Heritage) (14:38): I thank Ms Abigail Boyd for bringing this issue to the Chamber. Electrification is an important part of the energy transition path we are on. I have an amendment to the motion. I move:
That the question be amended by:
(1)In paragraph (3):
(a)omitting "congratulates" and inserting instead "notes that"; and
(b)omitting "for taking necessary" and inserting instead "have taken".
(2)Omitting paragraph (4) and inserting instead:
(4)That this House notes that the Government:
(a)released the Consumer Energy Strategy in 2024 that supports electrification through incentives and targets; and
(b)commits to investigating minimum energy efficiency performance standards for rentals, and to developing a New South Wales gas plan that will consider electrification and energy efficiency.
There is not a lot of distance between us on the issue. As usual, The Greens want us to go faster. We have a clear path, but it is going to take longer.
The Hon. Wes Fang: You can say "slower".
The DEPUTY PRESIDENT (The Hon. Taylor Martin): Order!
The Hon. PENNY SHARPE: Can the Hon. Wes Fang stop interrupting every single time I am at the table? Just stop it. What I wanted to say is that we accept that this has happened. In relation to new builds, there are a lot of builders who no longer put gas into their buildings. That is a good thing. Councils have taken a view on the issue and some are choosing to do that as well. The Government has been clear that banning new connections is not a priority in our approach around gas, but acknowledges that the benefits of electrification for households are great, with literally thousands of dollars of savings.
I also acknowledge the issue raised by the member about those left stuck on gas as more people get off the network. That issue is not insubstantial, and we need to deal with it equitably. The point—as reflected in my amendment—is that we are broadly supportive of the move, but we have a different approach. The Government is investing $290 million into the Consumer Energy Strategy. A lot of the work around energy efficiency and reporting about rentals is contained in that strategy. It is an important step forward. I thank the various groups that had input into that. Where we are today is that we agree that the more people electrify, the more that they will save. We agree that it is better for people in the long term, particularly as more renewable energy becomes available in the system, because it will save emissions. I commend the amendment to the House.
The Hon. SCOTT FARLOW (14:41): On behalf of the Coalition, I oppose the motion from The Greens regarding gas and electrification. We recognise the role that electrification plays, and will continue to play, in our energy transition. New technology will, over time, improve in efficiency and affordability, but the reality is that gas continues to be an important and reliable energy source for households, small businesses and the hospitality sector across New South Wales. In fact, it is an important part of the transition. It should be up to businesses, households and developers to decide how they power their kitchens, homes or projects. The role of government should be to set fair standards for safety and efficiency, not to dictate a single energy source. Heavy‑handed intervention removes choice and ignores the fact that different users have different needs. What works in one setting may not be practical or affordable in another.
The motion mentions the City of Sydney gas ban. Renowned chef Luke Mangan made the point that for many cooking styles, particularly in restaurants, gas offers a level of control and consistency that current electric alternatives cannot replicate. A number of other hospitality industry stakeholders have also spoken out following the ban. It is not just a matter for high-end venues. In multicultural communities across Sydney and regional New South Wales, gas is central to traditional cooking methods. Whether it is a stir-fry in an Asian kitchen, bread in a Middle Eastern bakery or a charcoal grill in a Greek restaurant, gas is part of how those cuisines are authentically prepared. We must be mindful that blanket bans or restrictions risk disregarding those cultural practices and could lead to unintended consequences. If people feel they cannot achieve the same results with the mandated alternatives, some may turn to unsafe, unregulated workarounds. Campfires have spawned in homes in some areas, and more of them could result from a ban such as the one proposed by The Greens. That is not a good outcome for safety or for the environment.
The City of Sydney and some other councils have moved to ban gas connections in new developments. Those decisions do not consider the diverse needs of the community, nor do they provide sufficient transition time for industry or households to adapt. Let us consider what happens to our energy needs throughout a day. The peak period is around six o'clock, when people are firing up their kitchens, but that is the time that renewables go offline. In that situation peak power, often provided by gas, is required. We are effectively switching one gas source for another. Whilst the Premier has stated such moves are oversteps, with this amendment the Government members are trying to work both sides of the street. On the one hand, they say they are all aboard with the movement, but on the other they are saying they are not going to do it. That is effectively the nature of the amendment being put forward by the Government today. We on this side will not be supporting the amendment, because we want to vote on the original motion as moved. We support a balanced, technology-neutral approach that allows households and businesses to choose the energy source that works for them.
The Hon. BOB NANVA (14:44): As the Minister has outlined, even though the Government is committed to supporting households to electrify and take up clean energy technologies like solar technology, heat pump technology, hot water systems and electric vehicles [EVs], it is not supportive of banning new gas connections, because households should have choice. That said, there is plenty that the Government is doing to decarbonise the economy. The Government's Energy Savings Scheme provides incentives to households when they choose to upgrade from a gas hot water system to an electric heat pump hot water system, or from a gas heater to an efficient air conditioning system.
There is also the Consumer Energy Strategy, which lays out the Government's plan to support households to electrify, to save money on their energy bills and to benefit from the energy transition, which is well underway: 35 per cent of our energy is already from renewable sources, and construction on our first renewable energy zone has begun. EVs now make up 8 per cent of new car sales and hundreds of EV chargers are being rolled out. As of 10 July 2025, 35 new ultra‑fast charging stations, 434 destination charging sites, 250 kerbside charging sites and 19 apartment building charging sites are operational. That is not to mention the $275 million put towards net-zero manufacturing in New South Wales for developers of low‑carbon materials, renewable manufacturing and clean technology innovation.
On top of that, although we do not support a gas ban, there is plenty we are doing to decarbonise. In 2023 New South Wales became the first State to mandate seven‑star thermal performance for all new homes, alongside tougher targets to cut greenhouse gas emissions to between 7 per cent and 11 per cent, depending on the location and the housing type. Houses built to the seven‑star standard are obviously going to save households money through reduced energy bills, projected to be approximately $1,070 per year. After mortgage repayments, energy bills are up there in terms of cost‑of‑living pressures, so that will leave people about $700 a year better off. That is a meaningful contribution to cost‑of‑living pressures; it is also a meaningful contribution to decarbonising the economy.
The Hon. JOHN RUDDICK (14:47): I am thrilled that the Minister for the Environment is here to listen and learn.
The Hon. Penny Sharpe: I always look forward to your lessons, John.
The Hon. JOHN RUDDICK: Thank you. The policy of banning gas in new homes is absurd. The war on natural gas is yet another attempt in the endless attempts to stop non-existent global warming. There is a bipartisan consensus in this place that we in this Chamber can change the weather. Members truly believe that absurdity, and they truly believe they must do it because of global warming. Global warming is not happening. Oceans are not rising. Natural disasters are not increasing in frequency. The climate has been changing for four billion years. Sometimes it can change quite abruptly due to natural forces, but the good news is that we in this generation have enjoyed a benign climate. Even if it does get a little warmer due to natural variation, it would almost certainly be a good thing. The real concern is that we enter an extended cold period; that is when life is stunted. All around the world, the public and the governments—Minister, you really should be listening to this; it is important.
The Hon. Penny Sharpe: I am always listening.
The Hon. JOHN RUDDICK: No, you are chatting. All around the world, the public and the governments are losing interest in global warming, because all the prophecies of doom have failed to materialise. Kamala Harris's presidential campaign barely mentioned climate change. New Zealand has reversed many climate change policies. When he was the United Kingdom's Opposition leader, Keir Starmer pledged to invest£28 billion a year to decarbonise the country. However, in office he has halved that commitment and extended the goal of a net‑zero economy from 2030 to 2050; that is, the never‑never. He does not care. If it truly was an emergency, why would left-wing leaders be winding it back? Gas is a cheap, reliable energy source that powers homes efficiently, keeping costs down for families already battered by soaring electricity bills. To ban gas in new homes is to force families into pricier, less reliable alternatives. The City of Sydney's ban on gas relies on projections from Climate Group 350 Australia, a group with a clear bias towards renewables. Their numbers lack objectivity, yet they are used to justify policies that punish households.
Meanwhile, Australian Energy Market Operator 2024 data shows 80 per cent of New South Wales night‑time electricity comes from good old coal. On 16 May this year, wind power contributed a mere 0.7 per cent to the grid at night—when cooktops are most used. Gas is not the villain here. Even if you are still clinging to global warming as a holy truth, you should be pro-gas. The United States slashed greenhouse emissions by 18 per cent from 2005 to 2015 by increasing natural gas use.
While the benefits of banning gas in new homes are close to zero, the costs are very real. Here is just a short list of the costs that would be imposed on the general public: Devaluing existing gas infrastructure, which pushes up the price of gas for existing users; taking away choice from residents and businesses; increasing the demand on our electricity grid; and shrinking the gas industry and associated jobs. This nonsense cannot endure forever. For some strange reason, Australia seems to be the last nation to wake up. But wake we will.
The Hon. AILEEN MacDONALD (14:50): I also oppose the motion—not because I oppose a cleaner, more sustainable future, but because I believe in balanced, practical solutions and respect for the lived realities of everyday Australians, particularly in the regions. This motion seeks to celebrate sweeping electrification mandates and push for further bans on gas connections in residential and commercial settings across New South Wales. But, in doing so, it disregards the realities faced by many families and small businesses in regional communities like mine.
Though it may be hard for The Greens to see, from the comfort of inner-city policymaking, they must consider the lived experience of regional people. What about pensioners—people who have worked hard their whole lives, raised families and retired to places like Armidale or Guyra that have colder climates where gas heating is not a luxury but essential for safety and wellbeing in winter? Those households have not budgeted and cannot afford the tens of thousands of dollars it would cost to electrify their homes if gas is taken away. Once again, The Greens are pushing policy that shows a deep disconnect with the realities of regional life. We should not allow ideological agendas to force country people into having to choose between staying warm or staying afloat financially. Let us be clear: Affordability and choice matter.
Gas remains a reliable and affordable energy source that supports thousands of households and small businesses, especially in regional New South Wales. It is often more dependable than electricity, when the power goes out during storms or blackouts. The motion also overlooks the significant cost of transition, retrofitting homes, replacing gas appliances and upgrading electrical infrastructure. Those costs will fall on everyday people, renters, businesses and the construction sector—none of whom have been properly consulted. Environmental goals must be pursued sensibly—not through blanket bans and mandates but through a transition that is affordable for households and small businesses, flexible to suit regional needs and reliability, and collaborative, working with communities and industry instead of imposing one-size-fits-all ideology. We want a cleaner future. But we must get there together without leaving anyone behind.
The Hon. EMILY SUVAAL (14:53): I speak in support of the Government's amendment to the motion. The motion canvasses a number of different issues, but I will speak briefly around the issues of banning new gas connections, which of course is not something that the New South Wales Government is looking at, and some of the measures that we have put in place around standards for new builds around the Building Sustainability Index. Electrical appliances can often be cheaper for consumers in the long run, so the New South Wales Government encourages consumers to go electric if that is the best choice for them. We have introduced a number of measures to encourage consumers in that direction. Following a ministerial directive, all Landcom developments are fully electric and the NSW Housing Pattern Book has been designed to produce all-electric homes.
The New South Wales Government is also supporting more affordable and energy-efficient homes. In terms of the Building Sustainability Index or BASIX standards for new builds, in 2023 New South Wales became the first State to mandate seven-star Nationwide House Energy Rating Scheme thermal performance for all new homes, alongside tougher targets to cut greenhouse gas emissions by between 7 and 11 per cent, depending on the location and the housing type. Homes that are built to the seven-star standard are projected to save households an average of $1,070 per year in energy bills. After mortgage repayments are factored in, this still leaves homeowners nearly $700 better off each year. That is a meaningful contribution at a time when cost-of-living pressures are being felt in every household across the State. The reforms are supporting the market as it shifts towards electrification. Builders and developers are now using BASIX seven-star ratings in their marketing, which is no longer considered unnecessary red tape but a positive thing.
The New South Wales Government is planning to develop the NSW Gas Plan, which will cover decarbonisation. It will consider east coast short-term gas supply issues with the Commonwealth and other States and Territories; investigate reforms to support electrification and energy efficiency; and investigate other longer term systemic issues. Consultation will be undertaken with stakeholders, including industry, consumers, network operators and energy market bodies at relevant points to inform the three stages of important work that the New South Wales Government is doing.
The Hon. TANIA MIHAILUK (14:56): I make a brief contribution. I oppose the motion and the amendment moved by the Government. I do not understand why the Government has moved it. It could have agreed with the Opposition to simply oppose the motion. I know what Premier Minns' position is: He is a great supporter of gas. The Hon. Penny Sharpe knows it, and I know it. The Hon. Bob Nanva knows. He has had to deal with many right-wing unions that are big supporters of gas and jobs in this State. I find it very odd that the Government, as the Hon. Scott Farlow rightly said earlier, needs to try to walk on both sides of the street. It is just nonsense. You lose people from both sides. The Greens are going to take Labor's left voters. We know that. They already are. Lots of votes are seeping out of the inner city to The Greens.
The Hon. Penny Sharpe: They are actually going the other way.
The Hon. TANIA MIHAILUK: It is not going the other way. The Hon. Penny Sharpe rushed down to the Harbour Bridge on the weekend when George Simon gave her the direction to do so because young people are increasingly voting for The Greens. That is the reality. If they are choosing a left-wing party, they are choosing The Greens over the Labor Party. Let us be very clear: We can be proud of what gas offers to New South Wales. We should be proud that we have a Premier who is not going to support what Victorian Labor is doing, what Australian Capital Territory Labor is doing and what some ridiculous councils are doing. The City of Sydney council—the socialist bloody republic of the Southern Hemisphere—is deciding that there are no more gas connections, deciding to destroy business and restaurant and hospitality opportunities in Sydney. It is just a joke.
Does it surprise anyone that councils like Canterbury-Bankstown council are supporting this? They do not care about the environment. They want to make sure their developers can build at a cheaper cost. They do not have to do connections with gas. We all know who they are worried about. In fact, they will allow the inflated bureaucracy at Canterbury-Bankstown to propose any change they want, as long as they do not get involved in any of the rezoning decisions, which is their concern. I find it really absurd. I would have liked to have heard a better and stronger speech from the Leader of the Government simply saying: "We don't support this motion. We are clearly not on the same page as Victorian Labor. New South Wales Labor cares about business, cares about industries, cares about jobs, and certainly still continues to support gas in New South Wales."
The Hon. WES FANG (14:59): I congratulate Ms Abigail Boyd. At least she has the courage of her convictions to bring a motion like this to the House. We know where we stand with The Greens on this. We do not necessarily agree with them, but we respect the fact that they own these issues. That is unlike members opposite, who like to have a bet each way. We know that the Minister for the Environment was clear about wanting to get rid of gas appliances, before she was overruled by the Premier on 2GB. In fact, the Premier did not even have the decency to tell the Minister for the Environment that he was going to do that before he did so in the interview.
Many ethnic communities are very attached to gas cooking. When my dad was alive and looking to buy a house, he was very determined to have gas in the house that he lived in. That was so much so that, even though we did not have a permanent gas connection, we had to have large, refillable gas bottles, because authentic Asian cooking needs gas or flame. Traditionally, people have used charcoal or fire to create the wok hei taste of Asian cooking that is done with flame. We have now transitioned to gas. Gas is a less impactful way of cooking ethnic dishes, but what does it achieve to take gas away from people in our communities? Why would we stop communities being able to prepare their meals, which is often part of the way they come together? Why would we do that? Is it because we want to somehow try to change the temperature of this planet?
Yes, we need to look at some of these issues, but this is not going to be the thing that will fix it. We are going to take away the right of people to prepare meals the way that they want. I do not think that is going to make a measurable difference to climate change, but it will make a great change in the way that some people live their lives. I do not think that this House should be looking to do that at this time.
[Business interrupted.]