North Sydney Council Phases Out Gas from July 2026 — What It Means for the Northern Beaches
— Northern Beaches Hot Water
Source: North Sydney Council / Mosman Collective
North Sydney Council will phase out gas connections in new developments from 1 July 2026. Here's what this means for Northern Beaches homeowners — and why it matters even if you're not in North Sydney.
North Sydney Council has confirmed that new residential developments will be required to demonstrate all-electric design — including hot water — from 1 July 2026. The decision, adopted on 23 February 2026, makes North Sydney the latest Sydney council to move away from gas in new buildings.
This follows the City of Sydney, which banned gas in new residential developments from 1 January 2026. Between the two councils, a significant stretch of Sydney's lower North Shore is now moving toward all-electric buildings.
Why This Matters for the Northern Beaches
The Northern Beaches Council hasn't announced a gas phase-out yet — but the trend is clear. Eight or more NSW councils have now moved to restrict gas in new developments. North Sydney is the closest council to the Northern Beaches that has taken this step.
For Northern Beaches homeowners, the practical question isn't whether gas will eventually be phased out — it's whether it makes sense to install a new gas system today knowing where regulations are heading. Nobody is forcing anyone to rip out existing gas — this only applies to new developments and major renovations. But if your current gas hot water system is at end of life and you're deciding what to replace it with, the regulatory direction is worth considering.
What's Driving the Change
The councils cite two main factors: household energy costs and emissions. All-electric homes with heat pump hot water save approximately $626 per year compared to gas-connected homes, according to City of Sydney modelling. Gas connections require a standing connection fee of $280+ per year regardless of how much gas you use.
There's also a safety and infrastructure angle. Gas networks require ongoing maintenance and the cost of maintaining ageing gas infrastructure is passed on to all connected customers. As more homes disconnect from gas, the cost per remaining customer increases — a trend that makes gas progressively less competitive.
What Are the Alternatives for Hot Water?
For hot water specifically, the all-electric replacement for gas is a heat pump. Heat pumps use about a quarter of the electricity of a traditional electric element system, running costs sit around $480 per year, and government rebates through the STC scheme and NSW Energy Savings Scheme help offset the upfront cost.
On the Northern Beaches, our mild climate means heat pumps operate at peak efficiency year-round. We install Reclaim Energy CO2 systems, Emerald, Stiebel Eltron, and others — each suited to different property types and budgets.
What Should You Do?
- If your gas hot water is working fine — no rush. Keep using it until it reaches end of life.
- If your gas hot water is failing or 10+ years old — consider a heat pump replacement rather than a like-for-like gas swap. The maths increasingly favours heat pumps.
- If hot water is your only gas appliance — the $280+ annual connection fee is dead money. Switching to a heat pump and disconnecting from gas eliminates that cost immediately.
- If you're building or renovating — plan for all-electric. Even if Northern Beaches Council hasn't mandated it yet, future-proofing your build makes sense.
We install both gas and heat pump systems — we'll always give you an honest recommendation based on your property, not push one over the other. But we'd be doing you a disservice if we didn't point out where the market is heading.
Thinking about switching from gas to heat pump? We offer free on-site assessments across the Northern Beaches. Call 0448 581 325 for a no-obligation chat about your options.