NSW’s E-Bike Crackdown Threatens Regional Tourism and Jobs

Outdoors NSW & ACT
Jul 1
2 min read

Outdoors NSW & ACT urges immediate action on unworkable e-bike certification rules

Outdoors NSW & ACT is calling on the NSW Government to urgently review and amend its implementation of new lithium-ion battery safety regulations, warning that the rules will devastate cycle tourism, force business closures, and risk millions of dollars in government investment in regional adventure tourism.

From 1 August 2025, all e-bikes hired or sold in NSW must comply with a unique certification, not required any where else in Australia, under new regulations introduced by the NSW Office of Fair Trading. This includes certified lab testing for each individual e-bike model's battery, charger, and complete system — a process that takes up to six months and can cost over $20,000 per model.

Lori Modde, CEO of Outdoors NSW & ACT, says while the sector supports improved safety outcomes, the timeline and requirements are impractical and damaging.

“These rushed regulations, introduced with just 68 days' notice, will effectively shut down bike hire operations across NSW — including along popular cycle tourism trails the government itself invested in,” Ms Modde said.“We support the intent around battery safety, but without an achievable pathway to compliance, these rules will collapse a growing, job-generating segment of regional tourism.”

The new standards will leave no certified bikes available to replace ageing fleet stock, particularly for tourism operators. As an example, seven e-bike hire businesses along the Northern Rivers Rail Trail stand to lose 19 jobs and thousands in potential revenue. Across NSW, over 260 bike shops are at risk — with no clarity or support for legacy stock now rendered unsellable.

Outdoors NSW & ACT joins Bicycle Industries Australia in requesting:

A minimum 12-month extension for businesses operating e-bike hire services;
Grandfathering of existing hire fleet stock;
Or financial compensation for operators whose bikes cannot be made compliant.

“The very businesses we were encouraging to invest in new infrastructure and build regional tourism will now be penalised for following that advice,” said Ms Modde.

With over $50 million invested in NSW mountain bike trails — many of which encourage e-bike access and hire services — these new rules risk undermining years of work to grow outdoor tourism and boost rural economies.