By the end of 2025, for the first time in history, Australia’s east coast will begin importing liquefied natural gas (LNG) to meet domestic demand. This will directly link local gas prices to international markets, leading to a dramatic price surge. The Queensland gas export industry, which already prioritises overseas buyers, will further tighten supply to drive prices even higher.
The Albanese government has pledged to extend energy rebates, but the opposition, led by Peter Dutton, has indicated plans to remove them and instead focus on increasing domestic gas supply. However, the reality is that major gas reserves are already controlled by multinational corporations, leaving little room for new supply outside of their control.
If rebates are removed and prices are left unchecked, Australians will face an economic shock equivalent to the combined effects of COVID-19 and the Ukraine war. This could add 4-5% to the Consumer Price Index (CPI), with further inflationary effects on food, building materials, and everyday essentials.
Worse still, Australia’s reliance on imported US dollar-denominated gas means that any depreciation of the Australian dollar will further increase energy costs. Global economic downturns—whether caused by war, financial crises, or recessions—will now have a direct and immediate impact on local gas and electricity prices.
If energy costs spiral out of control, the RBA will struggle to lower interest rates, even during economic downturns. This means:
Avoiding this crisis is possible—but it requires decisive action. The federal and state governments must work together to implement the following policies:
Despite these clear solutions, political leaders remain hesitant to take action. Pressure from the oil and gas lobby—comprised of multinational corporations and foreign buyers—continues to influence decision-making. If you own property or rely on affordable energy, now is the time to demand change.
Write to your local MP and urge them to take immediate steps to secure Australia’s energy future. Without action, the housing market—and the broader economy—could be heading toward a perfect storm in 2026 and beyond.