Australia is one of the most blessed nations on earth when it comes to natural resources. From iron ore to gold, nickel, cobalt and silver—in fact, most of the periodic table—Australia surely leads the world in these riches. But the point needs to be clearly made that they are Australia's assets, a national asset, and for the benefit of all Australians, and that includes our liquefied natural gas, LNG.

Good legislation is based on extensive and thorough consultation across all stakeholders and interested parties. In December 2025, the Albanese Labor government released the Gas Market Review and announced its intention to introduce a Domestic Gas Reservation Scheme. Since then, consultations have included gas producers, exporters, peak bodies, manufacturers, unions, states and territories, and trade partners. Further, an exposure draft of the legislation package was released on 10 September 2026 for public consultation which closed on 24 September 2026. As a result of this exposure draft consultation, 130 submissions were received. The feedback received varied considerably by stakeholder group. The package before us then has been refined as a result of this consultation process.

The fundamental premise underlying the bill is that it recognises national gas as a national asset and, further, that LNG exports are important to supporting jobs and Australians must have access to cheaper and more domestic gas. Surely no-one can argue with these things. The package before us comprises three bills. Firstly, the main bill, the Domestic Gas Reservation Bill 2026, establishes the export licensing, domestic supply obligation, administration and enforcement framework. Secondly, the Domestic Gas Reservation (Consequential Amendments) Bill 2026 amends a number of other acts, including the Competition and Consumer Act 2010. Thirdly, the Domestic Gas Reservation Levy Bill 2026 will ensure costs associated with administrating the scheme are paid for by the gas industry.

The main bill relates to the proposed Domestic Gas Reservation Scheme and has two components. Firstly, LNG exporters will be and are required to hold an export licence. Secondly, these export licence holders are required to contribute to domestic gas supply through a domestic supply obligation, the DSO. The scheme's standard setting, the DSO, will require licence holders to contribute to the equivalent of 20 per cent of annual export volumes to domestic gas markets. Importantly, in relation to the second point, as demand forecasts firm, the Australian Energy Regulator, the AER, will align domestic supply obligations to forecast domestic demand.

This calibration or adjustment will ensure domestic supply prices do not sink to levels that would cause a collapse in gas production or undermine Australia's renewable goals. Further, regarding existing contracts and infrastructure, these will be respected and contractual commitments that predate the scheme's announcement may be recognised through an adjustment system. These adjustments will not operate as a blanket exemption from the domestic gas supply but rather will be limited by time and circumstances. Other flexibility mechanisms incorporated into the package recognise operational realities while maintaining the integrity of the domestic supply obligation.

The main bill also aligns with the Albanese Labor government's commitment to a net zero economy. It does this by enabling the Gas Market Code to prescribe circumstances in which renewable gas, or arrangements that reduce demand for gas, may contribute towards meeting a domestic supply obligation.

Finally, the main bill reflects Australia's two physically and very distinct gas markets, the east coast market and the west coast WA market. The two-speed approach recognises that market fundamentals and effectiveness of state based regulation are very different in these two markets. In other words, the package allows WA's existing state based gas reservation scheme to continue to operate within constitutional constraints.

The Domestic Gas Reservation (Consequential Amendments) Bill 2026 commences when the domestic supply obligations begin and repeals the Australian domestic gas security mechanism from 1 January 2028. The reason why the ADGSM is being replaced is that it was designed to respond to forecast gas shortages. The new framework establishes an ongoing system that operates prospectively, preventing forecast gas shortages.

Finally, the Domestic Gas Reservation Levy Bill 2026 imposes a levy on export licences to recover the cost of administering and regulating the framework. The levy reflects the principle that the efficient costs of regulating an industry should be recovered from that industry rather than from the wider public.

The new framework and the new scheme outlined and detailed in these bills don't put a limit on the total amount of LNG that may be exported. In fact, exporters can continue to export as much LNG as they want, provided they meet their domestic supply obligations. Let me be clear. The Albanese government remains committed to Australia's role as a major LNG exporter and trusted trading partner, but this cannot come at the expense of domestic gas supply and users who have the right to demand reliable access to gas at prices they can afford.

In summary, access by Australians to reliable liquefied natural gas at an affordable price is fundamental to these bills, and the measures and reforms in these bills ensure that. Equally, these bills provide certainty for export of Australia's LNG and do not cap what can be sent to overseas markets. In this respect, these bills get the balance right. This legislation has and will generate debate. The debate is welcome. I commend to the House the bills and the work the ministers have done to get to this point.