In accordance with the resolution agreed to on 27 October 2026, the House will now consider the bill in detail as a whole. The question now is that the amendments circulated by the member for Ryan be agreed to.

Australian Greens' circulated amendments—

(1) Clause 15, page 22 (after line 24), after the heading "Other obligations", insert:

Licence holders (as well as persons that have, within the previous 12 months, applied for a licence or for renewal of a licence) are prohibited from making certain kinds of political donations. One purpose of these prohibitions is to prevent the making of donations that might influence the exercise of discretions by Ministers under this Act.

(This Part imposes these obligations relating to political donations by applying certain provisions of the Commonwealth Electoral Act 1918 to licence holders and to persons that have applied for a grant or renewal of a licence within the previous 12 months.)

(2) Clause 15, page 22 (line 25), omit "A licence holder must comply with other obligations", substitute "A licence holder must also comply with certain other obligations".

(3) Page 59 (after line 17), after Division 3, insert:

Division 3A — Political donations

40A Covered gas entities must not make political donations to members of Parliament etc.

(1) In addition to the way that the Commonwealth Electoral Act 1918 applies apart from this section, that Act also applies as if a reference in that Act to a foreign donor included a reference to a covered gas entity.

Note: Among other things, a foreign donor commits an offence, and is liable to a civil penalty, under Part XX of the Commonwealth Electoral Act 1918 if the foreign donor makes a gift to certain persons (including a member of the House of Representatives or a Senator) for certain purposes (see section 302F of that Act).

(2) For the purposes of applying the Commonwealth Electoral Act 1918 in accordance with subsection (1) of this section, a covered gas entity is a person that:

(a) is a licence holder for the purposes of this Act; or

(b) in relation to a provision of the Commonwealth Electoral Act 1918 that applies in relation to a gift made by, or on behalf of, a foreign donor—has, within the period of 12 months ending on the day on which the gift is made:

(i) applied under subsection 46(1) of this Act for an export licence; or

(ii) applied under subsection 52(1) of this Act for a renewal of an export licence.

(3) For the purposes of paragraph (2)(b) of this section, it does not matter what the outcome is of the application mentioned in subparagraph (2)(b)(i) or (ii).

(4) Clause 18, page 25 (line 5), omit "subsection (2), (3) or (4)", substitute "subsection (2) or (3)".

(5) Clause 18, page 26 (lines 24 to 26), omit subclause (4).

(6) Heading to subclause 19(5), page 28 (line 19), omit "Rules or gas market code", substitute "Gas market code".

(7) Clause 19, page 28 (lines 20 to 26), omit subclause (5) (not including the heading).

(8) Clause 19, page 28 (lines 27 to 29), omit subclause (6).

My amendments deal with some serious flaws in this bill. By setting up extensive new ministerial powers, including the power to exempt individual gas companies from regulations, this bill creates fertile ground for favours. Some would call it corruptibility. It would build a favour factory between gas companies and resource ministers: 'A few hundred thousand dollars in donations? Thank you very much. We'll put a carve-out in the regulation for you.' Specifically, this bill allows the minister to exempt gas corporations from the proposed domestic supply obligation. The entire purpose of this bill is to increase domestic gas supply, yet it gives the minister the power to exempt any company they like. We know that the gas companies are very generous donors to both sides of politics—and One Nation, too. They have covered all their bases, hedged their bets. This set-up means it doesn't matter if the government changes; decisions will always be made in the gas corporations' favour.

To dismantle this favour factory between the gas industry and political parties, my amendments prevent all political donations by the gas exporters regulated by this gas reserve legislation. My amendments also remove the open-ended ministerial discretion to create any circumstances in which a gas company meets its obligations to supply gas. We're deeply worried about this, because the minister can say to Santos, for example, 'If you promise to build a pipeline to open up Beetaloo Basin and release its 27 billion tonnes of emissions, we'll give you an exemption from the scheme for a few years.' In short, these powers, as they exist, can be used to encourage new gas development and create an incentive to open up new fields, even if they aren't economic.

I thank the member for Ryan for her amendment and engagement with the Domestic Gas Reservation Bill 2026. I reject entirely the implication around corruptibility or other things she has put onto the record. The bill that is before parliament today is a landmark economic reform in the form of a domestic gas reservation. The simple matter is that this bill is about getting more Australian gas to Australian consumers and Australian industries. This is not a bill in regard to electoral reform or donations. That is an important matter, and it warrants careful consideration and proper scrutiny. Agreeing to these amendments would bypass the consultation, analysis and scrutiny that good lawmaking requires. Labor has had a position for years, and the government has followed that, that we do need to stop the influence of big money in politics and improve transparency across the system. With the help of the parliament, this was achieved through the passage of the legislation at the end of the last term.

The question is that the amendments moved by the honourable member for Ryan be agreed to.

The question now is that the amendment circulated by the member for Curtin be agreed to.

Member for Curtin's circulated amendment

(1) Clause 27, page 43 (line 30) to page 44 (line 2), omit subclause (3) (not including the heading), substitute:

(3) The Minister may only make a DSO adjustment determination for a licence holder for a domestic gas market for a regulated period or extended period for the reason set out in paragraph 26(1)(b) if the Minister is satisfied that:

(a) the demand and supply conditions for natural gas in the market over the regulated period or extended period are such that it is appropriate to make the determination; and

(b) there are arrangements in place for the licence holder to supply, or arrange to supply, natural gas to the domestic gas market during the regulated period or extended period in accordance with the existing domestic gas reservation arrangements that apply in relation to the licence holder.

This is a modest amendment about the interaction between WA and this national domestic gas scheme. Technically, the domestic gas reservation would apply nationally, but the bill gives the minister the power to carve out facilities covered by an existing scheme. It's clear that the minister's intention is to carve out WA facilities, and I support this. WA has had its own domestic gas reservation policy since 2006, and it makes sense not to simply impose a second overlapping obligation on exporters operating under that scheme.

But the WA scheme has its problems. It generally requires LNG exporters to make the equivalent of 15 per cent of their gas exports available to the domestic market, but the obligation is measured over the life of the project rather than year by year. The terms are negotiated project by project and they're confidential, and there are questions about whether some exporters are delivering what Western Australia needs. The Institute for Energy Economics and Financial Analysis estimates that WA gas producers supplied five to 10 per cent of their production to the domestic market between 2018 and 2024—clearly below the 15 per cent target. The DomGas Alliance, which represents major gas users, including Alcoa, Wesfarmers and Yara, says that since 2017 Woodside's Pluto LNG project has supplied just 3.7 per cent of the gas it's exported to the domestic market. If the Commonwealth is going to rely on the WA scheme as the reason for exempting exporters from the national scheme, we should have some confidence that the WA scheme will be honoured. That's the issue that my amendment addresses.

As the bill currently stands, the minister can reduce an exporter's federal obligation because an existing domestic gas reservation arrangement applies. The minister doesn't have to be satisfied that the exporter has arrangements in place to supply gas under the state scheme. That creates a fairly obvious gap. An exporter could receive relief from its federal obligation because the WA scheme exists without having arrangements in place to provide the gas that the WA scheme is supposed to secure. The exporter gets the benefit of the carve-out, but Western Australians may not get the gas. My amendment adds a simple safeguard; it keeps the government's existing test but requires that the minister be satisfied of one additional thing—that arrangements are in place for the exporter to supply or to arrange to supply gas to the domestic market in accordance with the reservation arrangements that apply to it. Importantly, this does not change the WA scheme. It doesn't remove the WA carve-out and it doesn't impose new obligations on WA exporters. It simply says that, if an exporter is going to receive the benefit of the carve-out, there should be arrangements in place to meet the WA scheme.

I acknowledge that this amendment doesn't solve every problem with the WA scheme; it only tests whether those arrangements are in place. It's a very low hurdle to meet, but that should make it easier to accept. This amendment will become more important as WA's gas market tightens. The Australian Energy Market Operator projects gaps in the WA market from 2030, with those gaps growing in the years that follow. Before projected shortages are used to make the case for new gas developments like Browse, with the significant climate pollution that that would bring, we should make sure exporters are delivering the gas they have already agreed to provide to Western Australians.

This is a modest amendment. If the WA scheme is the reason an exporter receives relief from the national obligation, the minister should at least be satisfied that the arrangements are in place to honour that scheme. I'd hope that this outcome would be supported by both sides of the House as well as the people and government of WA. It tells the gas exporters who are not delivering on their state based obligation that this isn't good enough. This is an improvement that delivers for Western Australians and Western Australia, and I commend the amendment to the House.

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.

The question is that the amendment moved by the honourable member for Curtin be agreed to.

I once again remind all members that, once I give the instruction to lock the doors, that is the instruction not to enter the chamber. If this continues—there have been some close calls—I will continue to remove members. I remind all members that, once I say, 'Lock the doors,' that means, even if the door is not closed, do not enter the chamber. The question now is the amendments circulated by the honourable member for Mackellar be agreed to.

Member for Mackellar's circulated amendments—

(1) Clause 3, page 3 (line 2), omit "liquefied natural gas.", substitute "liquefied natural gas; and".

(2) Clause 3, page 3 (after line 2), after paragraph (c), insert:

(d) to achieve these objects in a way that does not jeopardise the achievement of Australia's greenhouse gas emissions reduction targets.

(3) Page 4 (after line 13), at the end of Division 1, add:

4 Australia's greenhouse gas emissions reduction targets

(1) This section applies:

(a) to a Minister (the relevant Minister), in relation to the exercise of powers, and the performance of functions, by the relevant Minister under, or in relation, to this Act; and

(b) to the Regulator, in relation to the exercise of powers, and the performance of functions, by the Regulator under, or in relation, to this Act.

(2) The relevant Minister and the Regulator must take all reasonable steps to ensure that the exercise of the powers, and the performance of the functions, does not result in this Act operating in a way that jeopardises the achievement of Australia's greenhouse gas emissions reduction targets.

(4) Clause 9, page 8 (after line 28), after the definition of Australian territory, insert:

Australia's greenhouse gas emissions reduction targets has the same meaning as in the Climate Change Act 2022.

(5) Clause 45, page 65 (lines 10 to 11), omit "at least 20 regulated periods", substitute "no more than 10 regulated periods".

(6) Clause 47, page 67 (lines 28 to 33), omit subclause (4) (not including the note), substitute:

(4) The expiry day must be the last day of a regulated period, where that regulated period is no later than the tenth regulated period beginning on or after the day the licence came into force.

(7) Clause 52, page 72 (lines 15 to 19), omit all the words from and including "where that regulated period is:" to the end of subclause (5), substitute "where that regulated period is no later than the tenth regulated period beginning after the initial expiry day.".

I rise to speak to my amendments to the Domestic Gas Reservation Bill 2026. These are relatively straightforward amendments that seek to improve the operation of the scheme and ensure it remains responsive to changing circumstances over time. The first amendment would limit LNG export licences to a maximum term of 10 years, rather than allowing licences to be issued for periods of 20 to 50 years. This amendment reflects recommendations from stakeholders including Climateworks and the Institute for Energy Economics and Financial Analysis. Australia's gas market will not look the same in 10, 20, 30 or 50 years as it does today. We know the LNG export sector is projected to decline over the coming decade, including under assumptions outlined in the government's Future Gas Strategy. Given the uncertainty, it makes sense to periodically reassess export licences rather than lock in arrangements for several decades at a time.

A 10-year licence period would reduce the risk of government needing to intervene to amend or revoke long-term licences as domestic gas market conditions, reserve estimates or emissions policies change. It would also allow consideration of the impact of proposed exports on Australia's emission reduction targets as circumstances and policy settings evolve. Importantly, it would provide a clear and predictable review process, allowing licences to expire and be reassessed rather than relying on governments having to intervene ad hoc if circumstances change significantly.

At the same time, the amendment would continue to provide certainty for industry and LNG export contracts. Most east coast LNG sale agreements are due to expire by 2036, and there are currently no new major LNG export projects under development. The amendment would also ensure there is an opportunity to periodically assess whether licence holders remain fit and proper entities to hold an export licence.

My second amendment would make clear that the reservation scheme should operate consistently with Australia's emission reduction commitments. Specifically, it would add an object to the act requiring that its objectives be achieved in a way that does not jeopardise Australia's greenhouse gas emission reduction targets. It would also require the minister and regulator to take all reasonable steps to ensure decisions made under the act do not undermine achievement of those targets. Decisions made under the gas reservation scheme should take into account Australia's existing emissions reduction commitments, and measures designed to improve domestic gas supply should not have unintended consequences for those objectives.

These amendments reflect recommendations made in the ongoing inquiry into this bill and would, in my view, strengthen the bill in a practical and sensible way. I commend the amendments to the House.

I thank the member for Mackellar for her engagement on this package of bills. We all want, and agree that there should be, an orderly and ambitious energy transition, and that's why the Albanese Labor government has legislated emission targets; reformed the Safeguard Mechanism; and published the Future Gas Strategy, which mapped out the role of Australian gas in the energy transition and, of course, the transition of our whole region and our regional trading partners. We have also invested heavily in electrifying homes and installing batteries, with record take-up right around the country, and we've invested in building renewables at record rates.

The Domestic Gas Reservation Scheme will ensure that Australians can still access affordable gas while they still need it. Five million homes in this country still rely on gas for heating; that's especially the case in Victoria and here in the Australian Capital Territory. They also rely on gas for cooking and hot water. Cheaper gas prices will help some industries decarbonise. For example, decarbonising steel production involves switching from coal to gas.

The bills do include demand calibration to ensure gas prices are lower but do not sink to levels that would undermine, in particular, the economics of renewable energy and energy storage products or further undermine investment in other projects. Additionally, renewable gases and demand reduction will be able to be used to equip domestic supply obligations under the reservation. Together, these features ensure affordable, secure gas supply is achieved in a way consistent with our net zero and renewable energy ambitions.

The member's amendment also proposes limiting export licences to a maximum of 10 years.

It's important to our economy and to our country's future that Australia does remain a reliable trade and investment partner, so, in designing our domestic gas reservation scheme, the government has sought to balance protecting domestic supply while maintaining investment certainty and supply to nations that absolutely depend upon our country's energy exports for their long-term energy security. The long-term export licences within the regime provide the long-term regulatory certainty that is key to attracting investment to this country and to ensuring we have a energy-secure region. For these reasons, while I appreciate the input, the government will not be supporting the amendment.

The question is the amendment moved by the honourable member for Mackellar be agreed to.

The question now is that the amendments circulated by the honourable member for Bradfield be agreed to.

Member for Bradfield's circulated amendments—

(1) Clause 27, page 43 (line 16), omit "the licence holder.", substitute "the licence holder; and".

(2) Clause 27, page 43 (after line 16), after paragraph (1)(b), insert:

(c) if a gas market code has prescribed circumstances for the purposes of paragraph 19(7)(a)—the licence holder is unable reasonably to bring it about that the licence holder is taken under paragraph 19(7)(a) to have made a DSO supply of natural gas in the market during the regulated period or extended period.

Note: For paragraph (c) of this subsection: paragraph 19(7)(a) allows a gas market code to prescribe circumstances in which a licence holder is taken to make a DSO supply of natural gas in a domestic gas market during a period. The circumstances must relate to supplying renewable gas in the market or reducing demand for natural gas in the market (see subsection 19(8)).

(3) Clause 27, page 43 (line 28), omit "natural gas.", substitute "natural gas; and".

(4) Clause 27, page 43 (after line 28), after paragraph (2)(b), insert:

(c) as mentioned in paragraph (1)(c)—take into account:

(i) if the gas market code has prescribed circumstances for the purposes of paragraph 19(7)(a) that relate to a matter mentioned in paragraph 19(8)(a)—the options available for supplying renewable gas in the market during the regulated period or extended period; and

(ii) if the gas market code has prescribed circumstances for the purposes of paragraph 19(7)(a) that relate to a matter mentioned in paragraph 19(8)(b) or (c)—the options available for reducing demand for natural gas in the market during the regulated period or extended period.

(5) Clause 27, page 44 (after line 13), after paragraph (4)(b), insert:

(ba) if a gas market code has prescribed circumstances for the purposes of paragraph 19(7)(a)—the Minister is satisfied that it would be uneconomic for the licence holder to bring it about that the licence holder is taken under paragraph 19(7)(a) to have made a DSO supply of natural gas in the market during the regulated period or extended period; and

Note: For paragraph (ba) of this subsection: paragraph 19(7)(a) allows a gas market code to prescribe circumstances in which a licence holder is taken to make a DSO supply of natural gas in a domestic gas market during a period. The circumstances must relate to supplying renewable gas in the market or reducing demand for natural gas in the market (see subsection 19(8)).

(6) Clause 27, page 44 (before line 18), before subclause (5), insert:

(4A) The Minister must, in considering whether the Minister is satisfied as mentioned in paragraph (4)(ba), take into account:

(a) if the gas market code has prescribed circumstances for the purposes of paragraph 19(7)(a) that relate to a matter mentioned in paragraph 19(8)(a)—the options available for supplying renewable gas in the market during the regulated period or extended period; and

(b) if the gas market code has prescribed circumstances for the purposes of paragraph 19(7)(a) that relate to a matter mentioned in paragraph 19(8)(b) or (c)—the options available for reducing demand for natural gas in the market during the regulated period or extended period.

I rise to speak to the amendments circulated in my name to the Domestic Gas Reservation Bill 2026. In my second reading speech, I said that this bill is a step forward but that it leaves too much to ministerial discretion. These amendments deal with one of those discretions. Clause 27 lets the minister make an adjustment to an exporter's obligation to supply gas domestically under the reservation scheme. That means lowering or deferring the obligation. As drafted, the minister can do that in three ways: if the exporter can't reasonably supply enough gas to the domestic market because, for instance, of existing contracts, if it's already supplying gas under an existing reservation scheme like in WA, or if infrastructure constraints stand in the way. On their face, those are reasonable grounds, but the bill already recognises that there's more than one way to meet a domestic supply obligation. Under clause 19, the Gas Market Code can count things as domestic supply even though they aren't a direct gas sale—supplying renewable gas, reducing a gas exporters own gas use or helping other energy users cut their gas use, including through electrification.

I welcome this deemed supply provision because it recognises that the cheapest gas is the gas Australians never have to buy. The problem is that, in clause 27, the minister's discretion to adjust gas supply obligations ignores this part of the bill. An exporter could say, 'We can't get the molecules to market,' and have its domestic supply obligation reduced without the minister interrogating whether it could have met that obligation another way. My amendment seeks to strengthen the domestic supply obligation by ensuring that the minister can't make an adjustment unless the exporter is unable reasonably to meet its obligation through renewable gas or demand reduction. Before we let an exporter off the hook, we should check whether it could have helped a household switch to a heat pump or helped a factory electrify its process heat.

These amendments make the 'deemed DSO' component of the bill consistent with the 'DSO adjustment' part of the bill, and they ensure that, before companies are given a leave pass, they should try the cleaner options offered by electrification. Every adjustment to an exporter's domestic gas supply obligation is gas Australian households and businesses don't receive. So, if an exporter can still meet its obligation by lowering demand, the domestic market gets the same benefit, and a more enduring one, that lowers the cost of living, improves energy security and reduces emissions. While a gas reservation scheme might protect Australians from international gas prices, electrification means that they don't rely on that gas anymore. I commend the amendment to the House.

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.