Gas is a big line item in the budget for many Australian homes and businesses – especially those using gas for space heating, hot water and cooking. Knowing the average annual gas bill can help you benchmark what you are paying and spot opportunities to save.
This guide explains how gas bills work in Australia, what typical gas costs look like for households and small businesses, and practical ways to bring those costs down. It’s written for busy business owners and decision-makers who want clear, no‑nonsense answers – and a simple way to find a better deal.
What is the average annual gas bill in Australia?
There isn’t a single national figure that applies to everyone. Your gas bill depends on:
- Which state or territory you are in
- Whether you are a residential or business customer
- Your usage (how many megajoules or gigajoules of gas you consume)
- Your tariff (supply and usage rates set by your retailer)
- Appliances (gas heating vs reverse‑cycle air conditioning, gas cooktops, etc.)
Recent public data from regulators, consumer advocates and industry reports shows that:
- Typical household gas bills often sit in the range of roughly $400–$900 per year, depending on income, location and usage.
- For small businesses, average annual gas bills can be much higher – anywhere from $1,500 to well over $5,000 per year, especially for gas‑intensive businesses such as hospitality, food manufacturing, laundries and accommodation.
These figures move around each year as wholesale gas prices, network charges and retail margins change. That’s why regularly reviewing your gas contract is so important.
Why gas bills vary so much by state
Average annual gas bills differ between states because of:
- Network charges: what distributors charge to transport gas to your premises.
- Wholesale gas costs: linked to domestic supply and export markets.
- Retail competition: some states have more retailers and sharper discounts than others.
- Climate: colder climates such as Victoria and Tasmania tend to use more gas for heating.
As a rough guide, public comparison reports often show that:
- Western Australia can have some of the lower average household gas bills because of local supply and tariff structures.
- New South Wales, Victoria, Queensland and South Australia usually sit in the mid‑range, with big differences between low‑usage and high‑usage homes.
- ACT and regional areas can see higher delivery charges, which flow through to your bill.
Use these figures as a benchmark only – the most useful comparison is between your current bill and what you could be paying on an alternative plan.
How to read your gas bill
Before you can work out whether your gas bill is high, you need to understand how it is put together. Most Australian gas bills – residential and business – break charges into two main components:
- Daily supply charge – a fixed fee per day simply for being connected to the gas network. You pay this even if you don’t use any gas.
- Usage (consumption) charge – a variable charge per megajoule (MJ) or gigajoule (GJ) of gas you actually use.
Your bill may also include:
- Demand or capacity charges (more common on large business sites)
- Environmental scheme costs and market fees (usually built into the rates)
- Late payment fees or card payment fees, depending on retailer policies
The total amount payable is your daily supply charge multiplied by the number of days in the billing period, plus your usage multiplied by your usage rate, plus GST.
For more background on how business energy charges are structured, see our article on business gas and electricity bills explained.
Average annual gas bill for households
To gauge whether your household gas bill is in a reasonable range, consider the following factors.
Household size and usage
- 1–2 person households with limited gas use (e.g. cooking only) might see annual gas bills at the lower end of the scale.
- Families of 3–4 people with gas hot water and some heating could sit around the middle.
- Larger households with multiple bathrooms and gas ducted heating may be towards the upper range.
It is also important to look at your usage in MJ/GJ on your bill. If your usage is significantly higher than similar homes in your area, it could point to inefficient appliances, poor insulation or a tariff that doesn’t suit your usage pattern.
Tariffs, discounts and bill timing
Two households using similar amounts of gas can still have very different annual costs if:
- One is on a discounted market offer with a competitive usage rate
- The other is stuck on an old or standing offer with higher base rates
Many retailers also offer conditional discounts, like “pay on time” or “direct debit” discounts. If you regularly miss the conditions, you may lose the discount and end up paying much more than you expected.
It’s smart to review your bill at least once a year to make sure you’re still on a competitive plan.
Average annual gas bill for small businesses
For Australian small and medium‑sized businesses, gas is often used for:
- Commercial kitchens and food preparation
- Water heating for hospitality, gyms and accommodation
- Process heat for manufacturers and laundries
- Space heating for warehouses and offices in cooler climates
Average annual business gas bills in Australia vary widely, but some common patterns include:
- Lower‑usage businesses (light commercial) might spend from $1,500–$3,000 per year on gas.
- Gas‑intensive businesses such as bakeries, restaurants, food manufacturers and large laundries can see annual gas costs of $5,000–$20,000+ per site, depending on scale and tariffs.
Because tariffs for business customers are often individually negotiated, it is very common for similar‑sized businesses on different contracts to pay very different rates for the same amount of gas.
If your gas bill feels high compared with peers in your sector, it is worth getting a professional comparison. Zembl’s energy experts can review your bills and check offers from multiple retailers to see if there is a better deal available from our panel.
You can get started via our energy comparison page or our business gas comparison form.
What is considered a high gas bill?
There is no strict definition of a “high” gas bill because it depends on your usage, location and premises. However, some warning signs include:
- Your annual bill has increased sharply without a change in usage.
- You are paying noticeably more than similar households or businesses in your area.
- Your tariff rates appear much higher than those advertised by other retailers in your state.
- You are on a standing offer or an old contract that has rolled over without negotiation.
If any of these apply, it’s worth seeking an independent comparison. Many businesses find significant savings without making any changes to their operations – simply by switching to a more competitive plan.
Key drivers of your average annual gas bill
Understanding what’s behind the number on your bill can help you control it. The main drivers are:
1. Usage (how much gas you consume)
Gas usage is measured in megajoules (MJ) or gigajoules (GJ). The more gas you use, the higher your bill. Key usage factors include:
- How long your heating or hot water system runs each day
- The efficiency and age of your gas appliances
- Insulation, draught‑proofing and building design
- Operating hours for businesses and opening times for venues
2. Tariff structure and prices
Your tariff includes daily supply charges and one or more usage rates. For some larger business customers, there may be block tariffs (different rates for different usage bands) or separate demand/peak charges.
Even small differences in usage rates – for example, a few cents per MJ – can make a significant difference to your annual bill, especially for high‑usage customers.
3. Contract terms and discounts
Contract length, automatic rollovers, conditional discounts and penalty fees all affect your effective gas price over a year. It is important to:
- Know when your contract expires
- Review any discount conditions and how long they last
- Check for exit or termination fees if you decide to switch
4. Regulatory and market changes
The Australian gas market is influenced by:
- Australian Energy Regulator (AER) determinations for network revenues in the National Gas Rules framework
- State regulators such as the Essential Services Commission (Victoria) and ESCOSA (South Australia)
- Wholesale gas price movements linked to LNG exports and domestic supply
- Environmental schemes and emissions reduction policies
These factors can cause retail gas prices to rise or fall over time. Keeping an eye on your bills and reviewing contracts regularly can help you stay ahead of increases.
How to reduce your average annual gas bill
Whether you are a homeowner or a business, there are practical steps you can take to bring your gas costs down.
1. Review your current plan
Start by checking:
- Your current supply and usage rates (c/MJ or $/GJ)
- Contract end date and any automatic rollovers
- Discounts and conditions (e.g. pay‑on‑time, direct debit)
If you are on an outdated plan or a standing offer, there may be immediate savings available by switching to a more competitive market offer.
Zembl can help you compare plans from a panel of leading gas retailers and find a better fit based on your actual usage. Our team does this every day for Australian businesses – you can learn more on our business energy page.
2. Improve energy efficiency
Reducing the amount of gas you use is one of the most effective ways to lower your annual bill. Consider:
- Servicing or upgrading old gas heaters, hot water systems and boilers
- Installing programmable thermostats and timer controls
- Improving insulation and draught‑proofing in your premises
- Optimising operating hours for heaters and hot water in businesses
In some cases, businesses may also consider fuel‑switching – for example, replacing older gas boilers with high‑efficiency electric heat pumps if the economics stack up.
3. Consider bundled energy offers
If your site uses both electricity and gas, some retailers provide bundled plans that may deliver a lower overall energy cost. Bundled offers can also simplify billing and administration.
Zembl regularly reviews gas and electricity quotes for businesses across Australia to identify where a combined offer could deliver savings.
4. Avoid bill shock with regular reviews
Waiting until after a large price increase hits your bill can be expensive. Instead, set a reminder to review your gas plan every 12–24 months or whenever your contract is due to expire.
If you’re short on time, you can simply upload a recent bill to Zembl. We’ll do the heavy lifting – analysing your charges and checking live offers from our retailer panel to see whether we can find you a better deal.
Government regulations and consumer protections
The Australian energy sector is heavily regulated to protect consumers and ensure fair, transparent pricing. Key protections for gas customers include:
- Energy Made Easy (AER) and state comparison sites, which allow residential and small business customers to compare retail offers in many jurisdictions.
- Fact sheets and Basic Plan Information Documents (BPIDs) that clearly disclose tariffs, fees and contract terms.
- Billing and hardship protections, including requirements around billing frequency, payment difficulty assistance and complaint handling.
- Retailer obligations to notify customers of significant price changes and end‑of‑benefit periods for discounts.
Businesses can also work with accredited and reputable energy comparison services. Zembl is a proud signatory to the relevant industry codes of conduct and is committed to transparent, obligation‑free comparisons.
How Zembl can help with your gas bill
Zembl works with businesses across Australia to reduce their electricity and gas spend. Here’s how we can help you manage your average annual gas bill:
- Free, no‑obligation comparison: You send us a recent energy bill; we analyse your usage and check offers from a panel of leading Australian retailers.
- Clear savings breakdown: We show you how your current plan compares to alternative offers, including any discounts and contract terms.
- Support for SMEs and large businesses: Our Energy Experts support smaller sites, while our Energy Brokers manage complex, multi‑site and large‑market tenders.
- End‑to‑end switching support: If you decide to switch, we coordinate the paperwork with your chosen retailer so you can focus on running your business.
For more insights on why regular energy reviews matter, visit our article on why you should review your business energy plan, or explore our guide to big business energy savings.
Next steps: check your gas bill today
If you’re unsure whether your gas bill is competitive, the simplest step is to have it reviewed.
- Grab your latest gas (or dual fuel) bill.
- Visit Zembl’s business gas comparison page or our energy comparison page.
- Upload your bill or enter your details for a free comparison.
Our team will assess your current plan, look at your average annual gas bill, and let you know if there’s a better option from our panel. If there is, we’ll help you switch – saving you time, effort and, potentially, a significant amount of money each year.
Ready to see if you’re paying too much for gas? Get in touch with Zembl today for an obligation‑free energy review.
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