Did the government back down on its gas reservation policy? No – most changes make sense

by bpckle | Sep 10, 2026 | In the Media

After months of gas industry pushback, the federal government has made sensible changes to its much-vaunted gas reservation policy.

Instead of forcing gas exporters to supply 20% of their export volumes to the domestic market, they will be made to supply “up to” 20%, with the precise amount set each year based on domestic demand. These details are in the newly released draft legislation.

This has been seen as a concession in the face of an intense industry backlash. But it’s not a concession at all – this is how the scheme was originally designed to work.

As I argued in July, the 20% figure was always a ceiling, not a floor. Both supply of and demand for gas will fluctuate over time, and the resources minister needs to be able to respond to that.

The scheme lets the minister decide how much gas to reserve each year, up to the cap, based on the market’s needs. Even Australia’s gas and oil peak body calls that “sensible”.

But there are still big questions over key elements of the design.

A carve-out for one producer?

One especially controversial element of the scheme is the minister’s power to reduce domestic gas obligations for individual companies.

This rule has divided the industry because one of the three east-coast exporters – GLNG – is unique in having signed contracts to export vastly more gas than it plans to produce until at least 2036.

Under the proposed law, the minister can reduce obligations on an individual company if meeting their obligations would require them to break their export contracts and if they are taking “active steps” to try to deliver domestic gas.

How this power is exercised in practice remains to be seen. The minister could use it to effectively exempt GLNG – or another producer – from domestic gas obligations.

An oversupplied market?

The government has not budged on a key element of its design: its supposed aim to push down prices by engineering a “modest oversupply” of gas.

Despite initially supporting the gas reservation, in recent months, domestic-only gas producers have pulled their support for the scheme over this proposal.

Their concern is that forcing an oversupply of gas into the market would force gas companies to sell gas below cost, making production unviable. This concern is not unfounded.

But again, the proposed legislation offers little clarity on what will actually happen in practice.

The minister will have the power to set the “oversupply” percentage each year somewhere between 0% and 10% of demand. In an east coast market using about 450 petajoules, that represents a huge range – anywhere from zero to 45 petajoules.

The government should cap this at 5% and codify how it will be set each year.

A truly national scheme?

The proposed gas reservation will really be two separate schemes – one for the east coast and one for the west. This is because the two systems are not physically connected and because Western Australia has long had its own scheme.

The obligations for each exporter will be set based on the demand in their system, not the nation as a whole. No one will be made to ship gas between coasts.

But in the hours since the draft legislation was released, the resources lobby in WA has rejected the goverment’s push to include the west. This is because the national scheme would be much stricter than the state’s scheme and would likely force WA exporters to deliver more domestic gas, more often.

Whether WA escapes the new tougher rules remains to be seen. Under the proposed rules, the federal resources minister can decide to reduce domestic gas obligations in recognition of existing state policies. This gives the minister carte blanche to exempt WA – or not. No one has any idea which way that decision will go.

A driver of decarbonisation?

The reservation law specifies that extracting gas from the ground is not the only way exporters can meet their domestic gas obligations.

First, they can also produce renewable gases such as biomethane, which can be collected from food waste or wastewater. Biomethane offers a critical way for many manufacturing businesses to decarbonise. Australia produces almost no biomethane at present. If the reservation policy creates demand for biomethane, it could accelerate this critical new industry.

Second, gas exporters can use demand reduction to meet their legal requirements. For example an exporter could fund a manufacturing business to electrify a gas boiler, permanently reducing demand for gas.

Designed right, the reservation could be a driver, not a dampener, on the shift to clean energy.

What problem is this meant to solve, again?

Gas is in structural decline in Australia.

The use of gas to generate electricity in the National Electricity Market has fallen by two-thirds over the past decade. Demand for gas on Australia’s east coast fell 6% last year alone – largely due to big batteries pushing out gas peaking plants. The number of households using gas for cooking and heating is now shrinking.

Despite declining demand and bountiful supplies of gas, Australia still risks running short. The energy market operator is still warning of looming shortfalls on both the east and west coasts.

In part, this is because traditional east coast supplies – the Bass Strait gas fields – are close to empty. But a bigger reason is the fact that 80% of all gas produced in Australia is exported.

East coast gas exports only really began in 2015 when three giant LNG export plants opened on Curtis Island, near Gladstone in Queensland.

Because they can attract much higher prices selling gas to international customers, exporters have strong financial incentives to export gas instead of selling it to domestic customers.

So the goal of the gas reservation is a to deliver enough gas to avoid shortfalls, and keep prices low, without slowing the phase out of gas in Australia.

Is this a good outcome?

The government has framed these laws as sensible. This is largely correct.

They will let the government of the day ensure the domestic market is well supplied without risking heavy-handed intervention that could tank the industry.

Whether it works or not will comes down to how the minister of the day chooses to use it. With the scheme not due to start until 2028, we may still have a long wait to find out.

Hamish McKenzie works for the Grattan Institute, which has been supported by government, corporations, and philanthropic gifts since 2008. A full list of supporters is published at www.grattan.edu.au.

Worried your pet might catch bird flu? Here’s what you can do

by bpckle | Sep 10, 2026 | In the Media

As a veterinarian who studies infectious diseases in cats, I’ve been repeatedly asked whether Australia’s outbreak of the H5 bird flu poses a risk to pets. The short answer is yes.

As this lethal virus continues to infect more mammals, poultry farmers and backyard chook owners remain on high alert. But outbreaks overseas suggest pets – particularly cats – can also contract H5 bird flu and develop severe disease.

To date, Australia has not recorded any cases of the deadly H5 bird flu in pets and the risk to most cats and dogs remains very low. But if infection does happen, the consequences can be serious.

As a nation of pet owners – with 7.7 million Australian households sharing their homes with a pet – we must understand how cats and dogs may become infected, what signs to watch for and which practical measures can reduce exposure to H5 bird flu.

Not just birds

Cats and dogs can catch bird flu in four main ways:

• direct contact with infected wildlife

• being in places where infected wildlife have been

• eating or drinking infected animal products

• coming into contact with the virus at home, including via clothing, shoes or equipment.

H5 bird flu outbreaks abroad – including in Poland, South Korea and Belgium – suggest infected cats can deteriorate rapidly and often die within days of exposure. Dogs can also become infected but appear less vulnerable to severe sickness. Many develop only mild symptoms or none at all.

Currently, no vaccinations are available for pets, and there is limited data on whether existing influenza antivirals could be a safe and effective treatment for cats and dogs.

This means prevention is the most effective tool we have.

Read more: The first wave of bird flu is the worst: what Australia can learn from overseas

How would I know if my pet is infected?

The early signs of H5 bird flu infection resemble those of many common animal diseases.

Infected pets may initially look unwell, develop a fever, become lethargic and go off their food. Common respiratory signs include coughing, difficulty breathing and discharge from the eyes or nose.

In cats, H5 bird flu can quickly progress and lead to serious neurological symptoms such as tremors, seizures or sudden blindness.

If your pet develops any of these symptoms, don’t arrive at your veterinary clinic unannounced. Call ahead and discuss your concerns with a vet, telling them if your pet has recently had contact with wild birds, wildlife or raw animal products. This will allow your vet to assess your pet’s level of risk and determine the safest way to examine them.

If your vet suspects your pet may have bird flu, they may conduct an initial assessment outside the hospital and implement additional infection control measures, such as wearing protective clothing and caring for your pet separately from other animals. They may also consult with the government veterinarian coordinating the bird flu response in your area.

If directed to do so by the government veterinarian, your vet may collect samples – most commonly respiratory swabs similar to COVID tests – to determine whether H5 bird flu could be involved. Currently, there is no in-house test that veterinary clinics can perform, so samples must be sent to a dedicated government laboratory for analysis.

Read more: What happens next with bird flu? An expert explains why monitoring matters

What you can do

Here are four practical steps owners can take to help keep their pets safe.

1. Avoid contact with wildlife

Leashing dogs and keeping cats indoors where possible will stop them from touching, scavenging or hunting infected wildlife. This also prevents pets from hunting healthy native wildlife, which need all the help they can get as this virus spreads.

2. Stay away from contaminated environments

H5 bird flu can be present in bird droppings, feathers, carcasses and contaminated water. Depending on environmental conditions, the virus can survive for days or even weeks. To protect your pet, bring food and water bowls inside when not in use and cover outdoor cat enclosures with roofing or tarp to keep contaminated bird droppings out. You can also shift bird baths and feeders from areas your pet frequents or remove them altogether.

Read more: Backyard bird feeding could be a bird flu ‘superspreader’. An expert explains

3. Steer clear of raw animal products

H5 bird flu is likely to spread into poultry or other farmed animals, making raw animal products a potential source of infection.

Most feline cases overseas occurred when cats ate raw foods – including raw meat, unpasteurised dairy products and improperly processed pet food – later found to be contaminated with the virus. Owners should avoid feeding their pets such products. And it’s worth noting, freezing or freeze-drying food does not reliably kill or inactivate avian influenza viruses.

4. Don’t bring the virus home

To avoid accidentally infecting your pet, it’s important to boost hygiene measures. This is especially true if you work with birds, wildlife or farmed poultry.

Only handle sick or injured wildlife if you are trained to do so. If you do have contact with them, wash your hands thoroughly, disinfect any equipment and change clothing and footwear before returning home.

For most Australian pets, the risk of getting H5 bird flu is extremely low. Taking some simple precautions can help keep it that way.

If you encounter sick or dead wildlife, remember to “avoid, record and report” any sightings to the Emergency Animal Disease Hotline on 1800 675 888. You can stay informed about where H5 bird flu has been detected by regularly checking the Australian government’s bird flu website and detection map.

Read more: Australia has long relied on volunteers and wildlife carers. As bird flu spreads, they will need support

Sally Coggins does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.