Sydney city is now blocking gas in all new residential developments, marking one of the most significant shifts in building standards ever adopted by an Australian capital city.

As of now, all new residential buildings approved within the City of Sydney local government area are required to install electric-only appliances, including cooktops, ovens, and indoor heating and cooling systems. Gas connections will no longer be permitted for in new homes.

The policy, expected to affect around 237,000 residents across the LGA, represents the first stage of a broader plan to fully electrify new developments, according to a story in RealEstate.com.au.

From January next year the ban will expand to include outdoor gas fittings such as heaters and barbecues, effectively ensuring all new residential and commercial buildings are entirely electric.

The City of Sydney Council first signalled its intention to restrict gas connections in 2023, citing rising energy costs, climate targets and growing evidence of health risks linked to gas appliances. Lord Mayor Clover Moore said the reforms would deliver environmental, financial and public health benefits.

“Relying on gas is bad for the planet, bad for our finances and bad for our health,” Moore said.
“It is why the move has been met with broad approval from a diverse variety of stakeholders.”

Moore referenced research linking gas cooking to respiratory illness, including studies suggesting gas stoves may contribute to around 12 per cent of childhood asthma cases in Australia. Public health experts have increasingly warned that indoor gas use can expose households to nitrogen dioxide and other pollutants.

Industry groups have also backed the change. Electricity distributor Ausgrid, the Property Council of Australia and sustainability organisations have endorsed the policy, arguing that all-electric homes are cheaper to run and better aligned with Australia’s long-term energy transition.

“The reality is that gas is an expensive commodity that is forecast to go up in price,” Moore said.

Sydney’s decision follows similar moves already implemented in other jurisdictions. Victoria banned new gas connections for most new homes and residential subdivisions requiring planning permits from January 2024, while the ACT ended new gas network connections in December 2023 as part of its plan to phase out gas entirely by 2045.

Under the Sydney rules, existing buildings and industrial sites will not be required to disconnect from gas, and some mixed-use developments may still install gas kitchens if they are designed to allow easy future conversion to electricity.

For developers, the changes will require adjustments to design standards, appliance choices and construction practices. For buyers and renovators, the policy signals a clear direction for the housing market, with all-electric homes set to become the default for new builds in Australia’s largest city.

As governments across the country move to decarbonise buildings, Sydney’s gas ban positions the city at the forefront of a national shift toward electrified, low-emissions housing.

Original reporting by Lydia Kellner, realestate.com.au,