NSW government pushes back e-bike certification fine after industry 'confusion'

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2 days ago

A safety requirement deadline for e-bikes that some believed would threaten food delivery, tourism and consumer options in NSW has been pushed back after outcry from the industry.
Fines of up to $825,000 were meant to commence from August 1 for manufacturers and suppliers who did not have e-bike models and parts certified on time — including lithium-ion batteries or chargers.
The new product standards introduced earlier this year were a nationwide first to tackle fire risk, also applying to hire e-bikes and similar micromobility products like e-scooters or skateboards.
But stakeholders argued there would be adverse effects from the "unrealistic accreditation deadlines" and said the bigger concerns were homemade kits, illegal imported e-bikes and poor quality versions being bought online or overseas.
Retailer 99 Bikes began clearing stock in preparation, while US manufacturer Trek said it would have been forced to withdraw from sales in NSW in order to comply by the original date.
After some pressure, the NSW government quietly announced last week the cut-off was postponed until next February.
Here's how the new date will affect customers trying to buy or rent e-bikes in the state.
Like dishwashers or hair dryers, e-bikes must now meet international electrical standards and be approved before sale.
NSW Fair Trading said the new standards — including providing information about safe use, storage, charging and disposal — would help ensure only compliant products were available on the market.
Regulation and Fair Trading Minister Anoulack Chanthivong said it would also crack down on fires sparked by low quality batteries.
According to Fire and Rescue NSW (FRNSW), there have been 166 lithium-ion-related incidents in the state so far this year.
General manager of Bicycle Industry Australia Peter Bourke said the government's "one size fits all" approach bunched together "good quality" e-bikes with "lower end" alternatives.
"This declared articles framework the New South Wales government utilises has been designed around household goods," he said.
"They've actually compared e-bikes to the same electrical frameworks as toasters and electric blankets."
After receiving feedback, NSW Fair Trading said consultation concerns included "delays in obtaining test reports, costs associated with testing, and confusion around the scope" of the process.
Applying for certification with the consumer regulator costs about $1,200 per bike, but additional lab testing can be over $20,000 per model and take up to six months, Mr Bourke said.
"The challenge is not about meeting the certification, it's about going through the testing protocols," he said.
Chief executive of 99 Bikes, Andrew Garnsworthy said the chain was supportive of the "overall objective to have high quality e-bikes and a reduction in e-bike battery fires".
He said the initial "unrealistic accreditation deadlines" would have led to safer models being pulled from the market.
In turn, Mr Garnsworthy said consumers could resort to lower quality alternatives available online from overseas, which could "backfire and unfortunately increase the amount of battery fires".
He welcomed the "sensible" extension, but said the testing costs, even pushed back, could "increase the costs of e-bikes in NSW" for consumers.
Outdoors NSW said at the start of July that the implementation would "devastate cycle tourism, force business closures, and risk millions of dollars in government investment in regional adventure tourism".
This is because hire e-bikes, used by tour companies and in food delivery, were not exempt from the certification rules.
"Good quality hire bikes for food delivery … operate on a monthly hire process," Mr Bourke said.
"So those [third party companies] wouldn't have been able to hire their product out either, and so the gig economy workers would also have been messed up."
A spokesperson for NSW Fair Trading said the cost of certification was "expected to be borne by manufacturers, with small businesses primarily responsible for verifying that the products they sell are compliant".
"Matters relating to illegally imported bikes fall under the jurisdiction of the Commonwealth Government," they said.
NSW Fair Trading confirmed the new compliance deadline came after "feedback from industry stakeholders".
"Despite the extension, all declared e-micromobility products must continue to meet the prescribed safety standards and NSW Fair Trading will maintain active market surveillance and enforcement action against suppliers found selling non-compliant products," the spokesperson said.
Mr Bourke said for customers hoping to buy or upgrade their e-bike next month, it would be "business as usual".
"Brands are looking to certify their product as fast as possible and over the coming months there will be an ability to replace stock," he said.
Smaller fines of up to $5,500 will still be enforced on August 1 for suppliers who do not provide clear and accurate safety information alongside products.
The final piece of the puzzle is the introduction of mandatory labelling, which is also set to kick off next February.