Planning rules requiring new residential buildings, medium to large commercial buildings, hotels and serviced apartment buildings in the City of Sydney to be all-electric have received final endorsement from Council.
The new planning controls were approved on Monday after they were met with wide-ranging support during the consultation period.
The new requirements build on indoor air quality provisions adopted earlier in 2025, which restrict indoor gas appliances such as cooktops and heaters in new residential developments.
From 1 January 2027, the restrictions will expand to cover outdoor gas appliances such as water heaters in new residential buildings and extend the all-electric requirement to new large commercial buildings, hotels and serviced apartment buildings.
Large commercial developments include office buildings greater than 1,000 square metres, hotels with more than 100 guest rooms and buildings with over 100 serviced apartments.
The new rules won't apply to industrial uses or existing buildings.
Where a mixed-use development is affected by the planning controls, any food and beverage premises within the development will still able to use gas, provided there is adequate space and electrical capacity for future electrification.
A total of 84 submissions on the proposals were received from industry bodies, advocacy groups and individuals, with the majority welcoming the changes. Supporters included the Property Council, Ausgrid, Energy Consumers Australia and the Global Cooksafe Coalition.
The move follows the City of Sydney's exploration of the benefits and challenges of all-electric buildings to create healthier homes and ease cost-of-living pressures.
Lord Mayor of Sydney, Clover Moore AO said going all-electric was a logical response to the challenges posed by fossil fuels.
"Relying on gas is bad for the planet, bad for our finances and bad for our health." the Lord Mayor said.
"Creating more energy efficient, healthier buildings which will meet future energy standards and avoid expensive retrofitting is an obvious next step.
"It is why the move has been met with broad approval from a diverse variety of stakeholders.
"Industry bodies from Ausgrid to the Property Council have endorsed the move, reflecting a broad community consensus on the need to end our reliance on gas.
"The reality is gas is an expensive commodity that is forecast to go up in price. These measures will spare households from being locked into increasingly expensive and outdated gas contracts."
With gas prices set to keep increasing due to market issues and supply risks, households in new all-electric developments would save around $626 a year in energy bills compared to gas-connected homes.
Electric systems are more efficient and have just one connection and daily rate.
Using electric induction cooktops instead of gas offers significant health benefits. Research has found that exposure to pollutants from gas cooktops can have health impacts comparable to passive smoking.
In drafting the proposal, the City of Sydney consulted with communities, industry and peak bodies to develop the best approach.
