Society

E-bike Safety Laws Threaten NSW Tourism Industry

New South Wales has delayed e-bike safety laws to February 1, 2026, raising concerns among regional bike hire businesses. These new regulations require rigorous certification that could lead to closures for businesses unable to comply. The lack of consultation with the tourism sector has sparked criticism and calls for financial aid to mitigate impacts on local economies.

Published

8 months ago

August 15, 2025

Chiara Reid

New e-bike safety laws in New South Wales, aimed at reducing fire risks from lithium-ion batteries, have been delayed until February 1, 2026. However, the extension offers little relief for regional bike hire businesses, many of which will be faced with closure should the laws pass, due to the price of meeting the new compliance requirements.

Under the new rules, all e-bikes sold – or rented out, which under NSW law constitutes a ‘sale’ – must be certified under a “whole-of-bike” scheme, which includes rigorous impact testing. Impact testing is critical, given that e-bikes are susceptible to high-impact incidents such as crashes or rough use. These impacts can compromise the integrity of electrical systems, posing serious fire risks.

Unlike retailers, who can sell off their uncertified stock prior to the February deadline, hire operators must rely on manufacturers to certify existing models – or else replace entire fleets themselves.

Business owners like Mick Cooper in Dubbo say the costs are prohibitive. Cooper, whose 13 e-bikes generate 80% of his revenue, could face fines of up to $825,000 for non-compliance. He estimates needing at least $50,000 to replace his fleet, as his manufacturer is not certifying the models he currently owns. Certification costs are expensive, with testing one model costing around $9,000, with an additional $1,200 for certification.

“It’s just a stay of execution,” -Mick Cooper

Tourism operators are going to be affected by this law change as well. E-bike tourism has surged across NSW, supported by over $51 million in government trail investments. Businesses like Sally Bouckley’s in Narooma have expanded rapidly due to increased demand, yet none of her 17 bikes meet the new standards. Furthermore, these rules affect all businesses that might rent out e-bikes, including hotels and campgrounds. The lack of consultation with the tourism sector is drawing criticism, with calls for grants, grandfathering clauses, or further extensions to avoid widespread closures.

Manufacturers are slow to certify older models, and some refuse altogether because NSW is the only jurisdiction with such stringent requirements. Without intervention, many regional businesses may be forced to shut down, undermining both local economies and the state’s growing cycle tourism industry.