2 days ago
E-bike safety law changes set to impact tourist bike hire businesses across NSW
A recent deadline extension for new e-bike laws in New South Wales has been no reprieve for small business owner Mick Cooper.
The 70-year-old has spent five years building his bicycle tour and hire business in Dubbo.
He said a fleet of 13 e-bikes accounted for 80 per cent of his revenue.
But from February 1, 2026, none of Mr Cooper's e-bikes will be legal to hire.
He could face fines of up to $825,000 for non-compliance.
He said the issue had been a new certification scheme for the sale of e-bikes being implemented by the NSW government, which aimed to reduce fires from unstable or damaged lithium-ion batteries.
Under NSW law, a hire is classed as a sale.
Unlike retailers who can sell non-certified stock before the February deadline, hire operators rely on the e-bike manufacturers to get the certification, or replace their fleets themselves.
Bicycle Industry Australia general manager Peter Bourke said many hire operators did not realise the laws applied to them.
He described the potential fallout as "extremely problematic" for regional operators and urged the state government to assist cycle hire and tourist businesses with a further extension or grandfathering clause or a grant program to replace fleets.
NSW Fair Trading declined to be interviewed about the scheme but said in a statement that hire operators had been given one and a half years to adjust.
"NSW Fair Trading announced the new safety requirements in August 2024 and provided a 12-month transitional period," a spokesperson said.
"Recognising the need for further adjustment, an additional six-month extension has been granted, bringing the total transition period to 18 months, ending on 1 February 2026."
There are very few e-bikes on the market that comply with the new rules because manufacturers are still certifying new or existing models.
Mr Bourke said some manufacturers were choosing not to certify at all given NSW was the only jurisdiction in the world with the new testing framework and "whole-of-bike" certification requirement.
The extra six months has not provided Mr Cooper with more options.
He said his e-bike manufacturer was not certifying the model he carried and without a minimum of $50,000 to replace his 13 bikes, "it's probably not viable to continue the business".
Campbell Shepherd in the Northern Rivers town of Murwillumbah faces a similar dilemma.
The models of his 50 e-bikes are all about three years old.
He has been exploring costly private certification, or he said he would be forced to close and fire six employees.
"Each model needs to be certified and my understanding is to test one costs about $9,000 and to certify is another $1,200," he said.
"We also have to give them two bikes [that cost $5000 each] per model that we don't expect to come back because they're going to trash them … they have to put it through all the paces of being broken or hit."
NSW Fair Trading said the new whole-of-bike certification was required to reduce fires from unstable or damaged lithium-ion batteries.
"In some cases, this includes impact testing, which is critical given e-bikes are susceptible to high-impact incidents such as crashes or rough use," a spokesperson said.
"These impacts can compromise the integrity of electrical systems, particularly lithium-ion batteries, posing serious fire risks.
"Ensuring the entire e-bike model can withstand such impacts is essential to maintaining safety."
E-bike tourism has surged alongside investments in cycleways around the state.
Outdoors NSW & ACT chief executive Lori Modde said the sector had received $51.8 million in government trail funding in the past few years.
She said the "lack of consultation" with the tourism and recreation sector over the new laws came as a shock.
"I don't think [NSW Fair Trading] understood the implications of their legislation into industries that rely on income from hiring e-bikes," she said.
Visitor numbers rose by 89 per cent from the previous year on the NSW south coast where upgraded bike trails were launched by the state government in April around Narooma.
An economic boost of $69.5 million in visitor spending was also recorded.
The announcement highlighted Sally Bouckley's local bike hire business which had grown from "two part-time workers in 2023 to three full-time workers and eight casuals" because of demand.
But from next February, none of Ms Bouckley's 17 e-bikes will be certified because they are more than two years old.
She contacted the international manufacturer and asked if any models had been associated with a fire. The answer was no, likely because of its certified high-grade battery.
In nearby Eden, Jessica Taunton only added 10 e-bikes to her hire business last year after demand from customers.
She has been given some reassurance from the manufacturer that they were recent enough models to be certified, but said the process had been stressful.
Steve Back in the northern Tweed Shire town of Mooball has already weathered the COVID pandemic and 2022 flood that destroyed his business when it wiped out the national park trails around Mullumbimby.
He rebuilt in 2023 with the launch of the Northern Rivers Rail Trail and now has 50 e-bikes.
He said at least half might be certified by February but any design change, even to the handlebars or seat, required new testing.
"I have one model which is about 60 per cent of my fleet," he said.
"That model is currently selling … so in theory, that should be OK.
"But if [the manufacturer] changes that design … all my bikes will be illegal."
