CANBERRA — The Liberal-National Coalition has today, August 24, 2026, announced a new energy policy aimed at driving down Australian power bills, which it claims have surged by nearly 40 per cent since 2022. The ‘More Australian Gas’ plan proposes a series of ‘State Energy Deals’ to unlock new domestic gas supply, with the promise of more affordable and reliable electricity for households and businesses.
Opposition Leader Angus Taylor stated that the policy directly addresses the cost-of-living crisis, asserting that current Labor governments have made it harder to produce Australia’s abundant gas resources. “Australia has gas under our feet, workers ready to develop it and families desperate for relief from high energy bills, yet Labor’s answer has been to make Australian energy harder to produce,” Mr Taylor said.
The Coalition’s strategy involves the Commonwealth partnering with states and territories willing to commit to increasing gas supply. This could mean opening new gas fields, expediting stalled projects, or streamlining regulatory hurdles. In exchange, the federal government would offer support for critical infrastructure such as pipelines, storage facilities, or new gas-fired generation. The objective is to foster greater competition and enhance grid reliability, particularly when renewable generation is lower.
Matt Canavan, Leader of The Nationals, criticised what he called the ‘weaponisation’ of environmental legislation and Labor’s safeguard mechanism for hindering crucial energy projects. “Labor has made Australia poorer by locking up our resources and obsessing over select forms of energy production,” Senator Canavan stated.
Shadow Minister for Resources, Senator Susan McDonald, emphasised the economic benefits, highlighting that the gas industry supports approximately 200,000 Australian jobs, many in regional areas. She argued that the Coalition’s approach would signal a welcome environment for investment in Australian resources.
“More Australian gas means stronger competition, more reliable electricity, more secure manufacturing jobs and downward pressure on the energy bills families and businesses pay.” — Angus Taylor, Leader of the Opposition.
This announcement comes as Australian households continue to grapple with elevated energy costs. While the Australian Energy Regulator (AER) and the Australian Energy Market Operator (AEMO) have reported easing wholesale electricity prices in some regions due to increased renewable energy and battery storage, these reductions have not fully translated into lower retail bills for all consumers. The AER’s Wholesale Electricity Market Performance Report 2026, released on August 20, 2026, found that while wholesale prices eased in 2025 compared to 2024 across all periods, prices remained above pre-2022 levels during evening peaks and overnight in most states, except Queensland.
For small businesses, the Coalition’s plan promises relief from high energy costs that are squeezing margins and forcing price increases for Australian-made goods. Major manufacturers, producing essentials like food, glass, and chemicals, depend on reliable and affordable energy to maintain operations and secure jobs. The policy frames gas as a critical component to ensure stable generation when intermittent renewables are not performing optimally.
The concept of state-level energy deals is not new. Mr Taylor referenced previous Coalition Government negotiations that delivered over $3 billion in bilateral energy deals with New South Wales, South Australia, and the Northern Territory, focusing on supply, infrastructure, and reliability commitments.
While the federal government’s universal Energy Bill Relief Fund concluded on December 31, 2025, some targeted state and territory concessions remain available for eligible groups. Households concerned about ongoing costs can explore options like energy-efficient upgrades to reduce consumption. For those looking to manage their energy use more effectively, understanding their current plan and exploring market offers remains crucial.
As the energy landscape continues to evolve with significant investment in renewables and battery storage, the Coalition’s ‘More Australian Gas’ policy introduces a renewed focus on traditional fossil fuel sources as a means to stabilise prices and ensure energy security. The effectiveness of these proposed State Energy Deals in delivering tangible bill reductions for Australian families and businesses will be a key area of scrutiny. For consumers, staying informed about market changes and actively comparing energy plans is essential. You can find more information on comparing options in our guide to Energy Plans No Lock-In Contracts Australia 2026: Complete Guide.
Furthermore, for households aiming to take control of their energy consumption and potentially mitigate rising costs, investing in home energy management systems or exploring virtual power plant (VPP) programs can offer significant savings. Understanding how to Maximise Your Home Battery Savings: Earn $1,000+ Annually with a VPP in 2026 could provide a buffer against market fluctuations. Similarly, reviewing guides on Australia’s Top Energy-Efficient Home Upgrades 2026: Maximise ROI as Electricity Bills Soar This Winter can offer practical steps to reduce overall energy demand and associated costs. The debate over the optimal energy mix to achieve both affordability and reliability continues to be a central theme in Australia’s energy future.