House debates Bills
Domestic Gas Reservation Bill 2026; Consideration in Detail
Madeleine King Brand, Australian Labor Party, Minister for Northern Australia
1:09 pm
I thank the member for Bradfield for her engagement with respect to this package of domestic gas reservation bills. I understand the intent of the amendments proposed, and I agree with the member for Bradfield that there should be a very high bar when considering whether a domestic supply obligation should be varied. Variations for pre-existing contracts or infrastructure constraints should not be blanket exemptions—and, indeed, they absolutely are not. Additionally, there are disincentives in the scheme for seeking a domestic supply obligation variation, such as that exporters will not get the benefit of demand calibration where they already have a variation in place. Under the scheme, all exporters will be expected to make contributions to the domestic market commensurate with their export volumes. There are transitional provisions that protect existing commercial arrangements—that is, contracts executed before the scheme was announced on 22 December 2025—and that recognise that infrastructure constraints will take time to address. These provisions are transitional. Applications for variation are open only in the first year of the scheme.
As the responsible minister for each application I receive seeking a variation for a pre-existing contract, I will consider whether the full domestic supply obligation would cause the contract to be breached and whether there are practical alternatives to avoid a contract breach, such as bringing on additional supply or swaps. This ensures that supply obligations are met, including through demand reduction and renewable gas supply. Enabling more renewable gas supply is a really important part of this package, and I look forward to that. We absolutely support electrification. This government has invested heavily in batteries and solar panels for people's houses right around the county, and it's a really important initiative and part of our commitment to reaching net zero. This collection of bills, and the Domestic Gas Reservation Bill 2026 in particular, is a package around ensuring that Australians get benefit from the gas that belongs to this country and, in doing so, lowering prices and avoiding shortfalls into the future. So whilst I appreciate the amendments and the intent behind them, the government will not be supporting these amendments at this time.
Question negatived.
Bill agreed to.
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