This proposal consists of 5 components.

The proposal would provide financial assistance to households and small businesses (with less than $10 million in turnover in the previous financial year) to disconnect from the gas network, and prevent new residential developments from connecting to the gas grid.

Financial assistance would be available for any of the following upgrades:

• Upgrading from single to 3-phase power.
• Replacing gas space heating with an electric heat pump.
• Replacing gas hot water heating with an electric heat pump or solar hot water.
• Replacing gas stovetop ovens and other gas-based kitchen appliances with induction or other electric alternatives.
• Installing level-2 electric vehicle (EV) chargers, with a limit of one for households and 5 for business, including any existing chargers.
• Replacing gas-reliant industrial technologies (such as boilers, furnaces or other industrial scale energy systems) with electrical alternatives, such as heat pumps (business only).

Component 1 would provide grants of up to $10,000 to households. Grants would be limited to 20% of the total upgrade cost, or 50% if the applicant disconnects from the gas grid within 6 months of completion of all eligible works.

Component 2 would provide loans of up to $20,000 to households. Loans would be offered at the rate of the Reserve Bank of Australia (RBA) overnight cash rate with a maximum 10-year fixed term.

Component 3 would ban the connection of any new residential development to the domestic gas network.

Component 4 would provide grants of up to $25,000 to small business. Grants would be limited to 20% of the total upgrade cost or 50% if the applicant disconnects from the gas grid within 6 months of completion of all eligible works.

Component 5 would provide loans of up to $100,000 to small business at the rate of the RBA overnight cash rate with a maximum 10-year fixed term.

The proposal would have effect from 1 July 2022.