I thank the member for Curtin for her engagement in relation to this package of bills. The domestic gas reservation scheme does apply nationally. Our constitution prevents, quite rightly, the Commonwealth from giving states and territories preferential treatment. This bill defines a domestic gas market as a market and a part of Australia where natural gas is acquired and supplied by means of a physical network of interconnected gas pipelines. Under the legislation, all LNG exporters will be required to hold an export licence regardless of their location.

In practice, as the member will know, the east and west coast markets are physically separate, certainly in terms of those interconnected pipelines, and conditions in one market do not necessarily reflect conditions in the other. The scheme has the flexibility to recognise this, and it is fit for purpose. The legislation does recognise existing reservation arrangements and allows for domestic supply obligations to be adjusted in appropriate circumstances to take into account demand and supply conditions in the market. Domestic supply obligations are linked to the domestic market from which the LNG is exported, meaning exporters continue to supply the market to which they are physically connected.

Western Australia introduced its gas reservation policy many years ago and has largely managed its supply well. I accept too that it has not been perfect, and I acknowledge the comments of others, especially those from Western Australia, about that. However, it does have a system, and it's different to the system we're proposing, with different means of addressing demand over time and their demand calibration. Whilst working not perfectly but largely well, it is wise to let that remain in place. For these reasons the government will not be supporting the amendment, but I thank you for your contribution.