Minns criticised council’s gas ban as an ‘overstep’. Developers say it’s a no-brainer

Property developers and apartment owners have strongly backed in the City of Sydney’s ban on gas connections for new builds, contradicting the NSW premier who branded the policy as an “overstep”.

The City of Sydney has mandated that new residential developments will have to use electric cooktops, ovens and space heating from January 1, 2026, and be entirely gas free from the following year.

Apartment buildings under construction in Sydney.Credit: Bloomberg

Five other NSW councils have already mandated electrification in new builds, though some have exceptions for hot water heaters. Lane Cove Council fully banned the use of gas appliances in new builds from October 2023.

Frankie Muskovic, national policy director for the Property Council of Australia, said targeting new builds made sense because the change was easier and more cost-effective than retrofitting existing buildings.

“This is a clear step towards cleaner, cheaper, all-electric buildings and it’s what the future demands – we support it,” Muskovic said.

“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.”

City of Sydney estimates that each new household would save around $626 a year in energy bills in an electrified development, based on the forecast gas prices.

The gas ban will also apply to large commercial developments in the City of Sydney from January 1, 2027, but will not apply to industrial uses or existing buildings. Restaurants, cafes and bars are allowed to use gas, as long as there is capacity for electrification in the future.

Muskovic said the long-term direction was right, but the Property Council had recommended transitional exemptions and pilot programs to support households and businesses with the shift.

The council, which represents the property sector including major developers, has also backed the Victorian government’s similar ban on gas in new builds, which is set to take effect from January 1, 2027 and apply statewide.

The Owners Corporation Network of Australia, which represents strata homeowners, has also endorsed the policy as saving money for apartment owners down the track.

Lord Mayor of Sydney, Clover Moore, during a recent visit to Paddy’s Markets.Credit: Alex Ellinghausen

The network’s managing director, David Glover, said the move to all-electric homes was “inevitable” for health, environmental and economic reasons, so the City of Sydney’s restriction on gas in new homes was “well thought through and essential”.

“Many strata homes don’t have the power infrastructure to get rid of gas, leaving residents stuck with it until their building can upgrade,” Glover said. “Recent examples we’ve seen put the upgrade cost close to $10,000 per apartment.

“Building the extra electrical capacity in at construction will cost a fraction of this – probably less than the old gas infrastructure. So let’s build for the future, not the past.”

Premier Chris Minns told reporters at a press conference on Wednesday the ban was an “overstep” by the City of Sydney, and suggested “things like gas on your stove top, as well as solar and batteries, are all part of the future mix”.

Minns said the state was taking “enormous steps” to reduce emissions, but it was important to bring the community along.

“This may, perhaps inadvertently, push more people away from the public acceptance of this economic change than drive them towards it, so that’s what I’m concerned about,” Minns said.

Solar Citizens chief executive Heidi Lee Douglas said new builds with gas connections risked becoming “stranded assets” in a short period of time. The Minns government needed to do more on uptake of solar for apartments, commercial and industrial buildings across Sydney, she said, including backing the Committee for Sydney’s proposal to make the entire city an urban renewable energy zone, using rooftop solar and electric cars with vehicle-to-grid charging capacity.

“This is particularly important with the proposal for high density transport oriented developments,” Douglas said. “Solar Citizens has been pushing Planning Minister [Paul] Scully to make sure that these developments have a clean energy mandate – that means being ready for solar, batteries, electric vehicles, and having no new gas so that these apartment complexes are future proofed.”

Rewiring Australia chief executive Francis Vierboom said even without solar panels, electric appliances were more efficient, and NSW should follow Victoria’s lead in phasing out gas.

“The NSW state government should get on with a common-sense plan that winds up gas, and the easiest thing would be to stop adding it to new builds, just as the City of Sydney has done,” he said. “When you’re in a hole, stop digging.”

The NSW Net Zero Commission, in its April 2025 consultation paper said on-site emissions from the built environment – homes, building and infrastructure – were 6 per cent of the state’s total in 2022 and had nearly doubled since 2005. The majority was because of fossil fuel use, mainly gas for hot water, heating and cooking.

The report noted that despite the environmental and health benefits of electrification and support for electrification from consumer groups, the number of gas connections continued to rise.

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