Average Gas Bill in Australia: What You Are Paying

What the average gas bill actually is🔗

Based on 2024-25 data from the Australian Energy Regulator and comparison sites, the national average residential gas bill is roughly $207 a quarter, or about $830 a year. That has climbed a lot recently: wholesale gas prices are now several times higher than before Australia ramped up LNG exports, and NSW bills alone rose around 13% in 2023-24. Every bill is built from two charges:

• Daily supply charge. The "just for being connected" fee, roughly 70c to $1.60 a day. At $1 a day that is $365 a year before you burn a single megajoule, which is why low-usage homes often find gas poor value.
• Usage charge. What you pay for the gas you actually burn, measured in cents per megajoule (c/MJ), typically 2.5c to 5.5c depending on state, distributor and plan.

Bills are also highly seasonal. If you heat with gas (common in Victoria, NSW, SA and the ACT), your June to August quarter can easily be two to three times your December to February one. That is the bill shock a lot of people feel every winter.

Average gas bill by state🔗

These are estimates from energy regulators and comparison sites. Your own bill depends on household size, insulation, appliance efficiency and whether you have compared plans lately.

A note on Victoria: the state benchmark of 63,000 MJ a year reflects heavy ducted gas heating. If you use gas only for hot water and cooking, your bill will be a lot lower.

What drives your gas bill🔗

Most residential gas bills come from three things, and one of them dominates:

• Space heating (the big one). A ducted gas heater running 6 to 8 hours a day in winter can burn 100 to 200 MJ daily. At 4c/MJ that is $4 to $8 a day, or $360 to $720 over a 90-day winter quarter. This is why Victorian and ACT bills dwarf Queensland ones.
• Hot water. For homes that do not heat with gas, hot water is typically 30 to 50% of the bill. Longer showers and higher thermostat settings add up fast.
• Cooking. Gas cooktops are popular but modest, usually 5 to 10% of the bill. If you are on gas purely to cook, the daily supply charge alone may cost more than the gas you use.

Gas vs electricity: the shift happening now🔗

Gas and electricity are increasingly competing for heating and hot water, and the maths has moved. A modern reverse-cycle air conditioner (heat pump) delivers 3 to 4 units of heat per unit of electricity, while a gas heater turns 80 to 90% of the gas it burns into heat. Factoring in prices, reverse-cycle heating is now competitive with or cheaper than ducted gas in most Australian climates, and cheaper still with rooftop solar.

Heat pump hot water uses about a third of the energy of gas storage. Induction cooktops have closed the gap with gas on performance. The "electrify everything" trend is real, and state policies are steadily steering new builds off gas. The catch is upfront cost: new appliances and possibly a switchboard upgrade are not cheap, so this is not an overnight move for everyone. But when an appliance is near end of life, it is worth quoting the electric option before defaulting to like-for-like gas.

How to cut your gas bill🔗

• Compare plans on Energy Made Easy. Enter your postcode and usage at energymadeeasy.gov.au. Switching off a standing offer can save $100 to $300 a year.
• Check if you are on a standing offer. That is the pricey default. Market offers are usually cheaper. Your bill states which one you are on.
• Draught-proof. Door snakes, gap sealing and draught excluders are cheap and cut heating loss. High return, low cost.
• Mind the thermostat. Every degree above 18 to 20C adds roughly 10% to heating costs. Setting 21C instead of 24C can cut heating by about 30%. A jumper is free.
• Service your ducted heater. A dirty filter makes it work harder and cost more.
• Shorter showers. On gas continuous flow, a 4-minute shower uses about half the hot water of an 8-minute one.
• Check hot water temperature. Keep it at 60C (the Legionella-safe minimum), not 70C. Higher just wastes energy.
• Claim your concession. Around half of eligible NSW households never claim the gas rebate they are owed. Do not be one of them.

Is it worth ditching gas entirely?🔗

Honest answer: it depends. The tipping point is the daily supply charge. Once you have electrified heating, hot water and cooking, you are still paying $365-plus a year just to stay connected, so for many homes that fixed cost alone justifies cutting the cord.

But there are real upfront costs: a permanent gas disconnection (abolishment) can run well over $1,500 with some distributors, plus $1,000 to $3,000+ for a reverse-cycle unit, $2,000 to $4,000+ for heat pump hot water, and sometimes a switchboard upgrade. For a high-usage Victorian home, switching and disconnecting could save $1,000+ a year, paying back in roughly 5 to 8 years. For a Queensland home using gas only for hot water and cooking, the case is weaker.

The practical approach: do not rush it. If your gas appliances work fine, there is no urgency. But when your heater or hot water system nears end of life, get quotes for electric alternatives first, model your own numbers, and check your state for efficient-appliance rebates before replacing like-for-like.

Government concessions and rebates🔗

If you are eligible, a concession takes a real chunk off your bill. A quick tour:

• NSW: up to $110 a year for eligible Pensioner Concession Card, Health Care Card and DVA Veteran Gold Card holders.
• VIC: the Winter Gas Concession discounts winter gas bills for eligible card holders.
• SA: the Energy Concession for eligible card holders.
• QLD: mostly electricity-based concessions, since most homes heat with electricity.
• WA: the Hardship Utility Grant Scheme (HUGS) offers one-off help.

Struggling with a bill? Contact your retailer's hardship team before it reaches disconnection. Every licensed retailer must have a hardship program. You can also call the National Debt Helpline on 1800 007 007 for free, independent financial counselling. For the full state-by-state picture, see our guide to energy rebates and concessions.

❓ Frequently asked questions🔗

Keep reading🔗

• Average electricity bill by household and state
• How to lower your electricity bill
• Energy rebates and concessions by state