Be honest—would you travel to a town if you couldn’t hire a bike there?

A looming change in e-bike laws has left some New South Wales tourism operators fearing for their livelihoods.

For Dubbo businessman Mick Cooper, an 18-month grace period has felt less like a lifeline and more like borrowed time.

And with the February 2026 deadline drawing closer, the clock is ticking for many regional bike hire operators.


Mr Cooper, 70, spent five years building his bicycle tour and hire business, with 13 e-bikes making up 80 per cent of his revenue.

But from 1 February 2026, none of his e-bikes will be legal to hire under new NSW safety regulations—putting him at risk of fines of up to $825,000 for non-compliance.

The changes form part of a new certification scheme aimed at reducing fires caused by unstable or damaged lithium-ion batteries.


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New e-bike laws threaten regional hire businesses. Image source: Pexels/G-FORCE Bike
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.


Under the law, hiring a bike is classed as selling one, which means hire operators are bound by the same rules as retailers.

While retailers can clear out uncertified stock before the deadline, hire businesses must either rely on manufacturers to get the required certification or replace their fleets entirely.

Bicycle Industry Australia general manager Peter Bourke said many in the sector were unaware the rules applied to them.

‘It includes anyone who hires out bikes, from a caravan park to a hotel,’ he said.

Mr Bourke described the impact as ‘extremely problematic’ for regional operators and urged the government to consider more support measures, such as an extension, grandfathering clause, or grants for fleet replacement.

NSW Fair Trading said hire operators had been given one and a half years to adjust, with an extra six months granted for further transition.

Despite this, there are currently very few compliant e-bikes on the market as manufacturers are still working on certification—some opting out entirely because NSW is the only jurisdiction in the world with this ‘whole-of-bike’ requirement.

Mr Cooper’s e-bike brand is not being certified, leaving him facing a replacement bill of at least $50,000.

‘It’s probably not viable to continue the business,’ he said.


In Murwillumbah, Campbell Shepherd operates 50 e-bikes that are all about three years old.

He said manufacturers were only certifying newer models currently in production and available in stock.

Exploring private certification would mean paying about $9,000 for testing and $1,200 for certification per model, plus supplying two bikes worth $5,000 each that would be destroyed in the process.

‘We don’t expect to get them back because they’re going to trash them,’ he said.

Outdoors NSW & ACT chief executive Lori Modde said $51.8 million had been invested in bike trails in recent years, but the new rules risked undermining tourism gains.

She said there had been a ‘lack of consultation’ with the tourism sector, which had not anticipated the scale of the impact.

On the NSW south coast, upgraded trails around Narooma saw visitor numbers jump 89 per cent and visitor spending rise by $69.5 million.

Bike hire operator Sally Bouckley said her business had expanded from two part-time staff in 2023 to three full-time workers and eight casuals—but her 17 e-bikes, all more than two years old, would not be certified.

‘It’s just a real kick in the teeth for quality tour operators who already have really good bikes,’ she said.

In Eden, Jessica Taunton had been told her 14-month-old fleet should be eligible for certification but said the uncertainty was stressful.

‘There’s no timeline [for when it will be done] and there’s no guarantee that they will make the certification criteria,’ she said.


In Mooball, Steve Back rebuilt his hire business in 2023 after floods wiped out his operations in 2022, but feared losing half of his 50 e-bikes.

He said even small design changes, such as a new handlebar or seat, would require full retesting.

‘If [the manufacturer] changes that design … all my bikes will be illegal,’ he said.

If the new e-bike certification laws have you wondering why these two-wheeled machines spark such heated debate, you’re not alone.

From safety concerns to the joy of easier travel, opinions on e-bikes and their close cousin, the e-scooter, are anything but unanimous.

Here’s a closer look at why these devices are winning fans in some corners and raising eyebrows in others.

Read more: Why some people either love or hate the spread of e-bikes and e-scooters in NSW

Key Takeaways
  • Many NSW e-bike hire businesses face closure by 1 February 2026 due to new certification rules.
  • The regulations require ‘whole-of-bike’ testing to reduce fire risks from lithium-ion batteries.
  • Some manufacturers are choosing not to certify older models, leaving operators with costly replacement options.
  • Tourism advocates warn the changes could undo recent gains in visitor numbers and spending.

The future of NSW’s e-bike tourism industry may depend on whether operators can adapt—or if the rules will leave trails without the bikes that bring them to life.
 

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