Green Square Construction Image Credit City of Sydney Adam Hollingworth

City of Sydney

Proposed new planning rules will require new residential buildings, large commercial buildings and hotels in the City of Sydney local area to be all electric by 1 January 2027.

The changes kick off on 1 January 2026, when new residential developments will need to ensure their indoor appliances (cooking and heating) are electric.

In addition, the City of Sydney will place a suite of broader proposals on public exhibition shortly.

These proposals will add outdoor appliances (heaters) to the electrification rules for new residential developments as well as require new large commercial buildings and hotels to be all electric from 1 January 2027.

The move follows the City of Sydney’s exploration of the benefits and challenges of building all-electric buildings in an effort to create healthier homes and ease cost-of-living pressures.

Lord Mayor of Sydney, Clover Moore AO welcomed the new rules for indoor electric appliances, which will come into effect in just over six 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.

“These changes will create healthier and more energy-efficient buildings which will meet future energy standards and avoid expensive retrofitting.

“They also spare households from being locked into increasingly expensive gas prices and potential shortages.”

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.

In drafting both proposals, the City of Sydney consulted with community, industry and peak bodies to develop the best approach.

The wider proposal means that development applications for all new residential developments and large commercial developments will be gas free from 1 January 2027 if they’re adopted by Council after the exhibition period.

And new residential developments will have to use electric cooktops, ovens and space heating from 1 January 2026.

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.

Following Council endorsement, the commercial building proposals will be open for public comment from 30^th of June to 28 July 2025.

For more stories from your local area, visit news.cityofsydney.nsw.gov.au

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