The changes will begin on 1 January 2026, when new residential developments will have to use electric cooktops, ovens and space heating.
Lord Mayor of Sydney, Clover Moore AO welcomed the new rules for indoor electric appliances, which will come into effect in just over 6 months.
“Relying on fossil fuel gas is bad for the planet, bad for our finances and bad for our health. Ensuring all-electric buildings into the future is simply a logical next step to take,” the Lord Mayor said.
We’ll also open a suite of broader proposals for public consultation soon.
These proposals will add outdoor appliances to the electrification rules for new residential developments. They’ll also require new larger commercial buildings and hotels to be all electric from 1 January 2027.
"These changes will create healthier and more energy-efficient buildings which will meet future energy standards and avoid expensive retrofitting,” the Lord Mayor said.
A broader shift to electrification
In drafting both proposals, we consulted with community, industry and peak bodies to develop the best approach.
Larger commercial developments include new tourist accommodation with more than 100 rooms and large commercial buildings of more than 1,000 square metres of floor space.
This aligns with the NSW Sustainability State Environmental Planning Policy which encourages the design and delivery of sustainable buildings.
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 are still able to use gas, provided there is capacity for electrification in the future.
A healthier option
The move follows our exploration of the benefits and challenges of building all-electric buildings in an effort to create healthier homes and ease cost-of-living pressures.
With gas prices forecast to keep increasing due to network charges, each new household would save around $626 a year in energy bills in an electrified development. Electric systems are more efficient and have just one connection and daily rate.
Using electric induction appliances instead of gas cooktops offers significant health benefits. Exposure to pollutants from gas cooktops has been found to have a similar health impact as passive smoking.
Following Council endorsement, the commercial building proposals will be open for public comment from 30 June to 28 July 2025.
Published 24 June 2025
