New E-Bike Regulation Risks Derailing Trail Tourism and Local Economies

The NSW Government’s new safety standard for lithium-ion batteries in e-micromobility devices, effective from February 2026, has blindsided tourism and recreation operators, placing the future of many e-bike hire businesses—and the trails they support—at serious risk.

While Outdoors NSW & ACT supports the intent of safer e-bike operations and greater consumer protection, the implementation of this new regulation has failed to consider the broader impacts on regional tourism, recreation, community health, and the economy.

Over recent years, the NSW Government has invested more than $51.8 million into mountain bike and rail trail infrastructure, recognising the enormous potential of biking tourism to activate regional communities. E-bikes, in particular, have played a key role in increasing accessibility to these trails—enabling people of varying fitness levels and ages to enjoy the outdoors and achieve the equivalent health benefits of walking.

But now, the very organisations that have supported this growth are being left behind.

Bike hire operators—many of whom are small businesses or not-for-profit bike clubs—are facing the sudden redundancy of their e-bike fleets. With manufacturers unwilling or unable to recertify older but safe stock, operators are facing losses in the tens of thousands of dollars, and in some cases, complete operational shutdown.

"Businesses followed the government’s lead—investing in e-bikes, training, and infrastructure to support this boom in outdoor recreation. To now be effectively forced out of business, without consultation or transition support, is both unfair and economically short-sighted," said Lori Modde, CEO of Outdoors NSW & ACT.

These businesses are not just commercial hire outlets. Many are run by local cycling groups or not-for-profit organisations that use hire income to maintain and improve the very trails the government has invested in—maintenance that rarely receives sufficient government funding.

This abrupt regulation contradicts the recent momentum from within the mountain biking community, such as the release of the Mountain Biking Manifesto, a sector-led initiative to grow the sport responsibly, safely, and sustainably across NSW. The Manifesto highlights collaboration and shared vision between riders, land managers, tourism operators, and government. This regulation undermines that effort.

“We strongly support the goal of safer e-bikes and reducing fire risk. But this legislation should have involved genuine engagement with industry and operators—many of whom could have contributed to a safer rollout without destroying their livelihoods,” Modde said.

Outdoors NSW & ACT calls on the NSW Government to:

• Immediately engage with the bike hire and tourism sector to assess the impacts of this legislation,

• Provide a transitional support plan for businesses with existing stock,

• Work collaboratively to implement safety improvements that also protect economic viability.

Let’s not make safety a trade-off for sustainability, community health, and regional economic strength. We can and must do both.