Overview

• The Coalition has released detailed modelling for its domestic gas reservation policy, projecting a 3% reduction in residential electricity bills, a 7% cut in household gas bills, and a 15% drop for industrial gas users.
• The plan involves forcing gas exporters to reserve 50-100 petajoules of gas annually for domestic use, aiming to lower wholesale gas prices from $14 to $10 per gigajoule.
• Contradictory statements from Coalition leaders have created confusion about when households and industries will see cost reductions, with timelines ranging from late 2025 to next year.
• Energy experts and industry groups caution that the policy could deter investment in gas production, exacerbate long-term supply issues, and potentially drive up prices instead of lowering them.
• Legal experts have raised constitutional concerns about the proposed export levy, questioning whether it could be classified as a discriminatory tax under Australian law.