Hospitality industry pushes back on Sydney gas ban over restaurant concerns
Sydney’s hospitality sector has voiced strong opposition to a new City of Sydney Council policy restricting gas use in new developments, warning the move could drive restaurateurs out of the city and increase operational costs.
The council's updated development control plan (DCP), passed unanimously on Monday night, will prohibit gas connections in new residential buildings and restrict food and beverage outlets in mixed-use developments to a single gas connection from 31 December. While outdoor barbecues are exempt, the policy aims to improve indoor air quality by phasing out fossil fuel gas appliances such as cooktops, ovens and heaters.
Business Sydney executive director Paul Nicolaou called on New South Wales Premier Chris Minns to intervene, arguing the council was overreaching.
“Councils should not be unilaterally applying their own DIY building standards separate from the state government,” Nicolaou said. “Banning gas connections across the board is a blunt instrument especially when the vast majority of homes, using modern, flued gas appliances with proper ventilation, can do so safely.”
Planning and Public Spaces Minister Paul Scully confirmed the state would not be following suit.
“A statewide gas ban is not something the NSW Government is looking at,” he said. “The City of Sydney Council ‘ban’ is not mandatory... development control plans provide guidance only.”
Despite the DCP’s non-binding status, all development applications ultimately pass through council, raising concerns in the food industry that the guidelines could stifle restaurant growth. Restaurateurs like Nahji Chu, who runs Lady Chu in Potts Point, warned of broader consequences.
“You can’t do Asian cooking on induction woks,” she said. “I have tried it and spent a lot of money trying it... You just can’t get the regularity and the heat that you need.”
Siwilai Thai chef Nat Monjai added: “The smell comes from smoke. With no more gas, no more Asian food,” she told The Daily mail.
Chef Luke Mangan also questioned the rationale, stating:“The emissions are something like 7 per cent, so I believe people should have a choice.
“Gas is more efficient at home... payroll has gone up, rent has gone up, you have to look at the costs.”
Industry group the Australian Restaurant and Cafe Association echoed concerns that future redevelopments or renovations could be caught under the policy.
Chief executive Wes Lambert said: “It is super important that council consults with the industry.”
The City of Sydney stated the policy would be reviewed after a year.
“Research from the Global Cooksafe Coalition and Asian Australians for Climate Solutions shows that induction cooktops are a viable alternative in most situations,” a spokesperson said.
“Trends will change with new technologies... the report includes a recommendation to review this aspect within a year.”
The debate follows Victoria’s delayed rollout of similar gas substitution reforms, which were recently pushed back to 2027 amid implementation challenges.
Jonathan Jackson, 25th June 2025
