Huge Lime bike law change as NSW becomes the first state to catch up to the company flooding the streets with the popular devices

By JOANNA HYNDS FOR DAILY MAIL AUSTRALIA Published: 10:33, 13 August 2026 | Updated: 10:38, 13 August 2026 NSW will be the first state in Australia to introduce much tighter regulation of e-bike rentals, giving councils and police greater powers to control their use.  The changes follow mounting complaints about Lime bikes blocking streets across Sydney, with concerns the thousands of bikes deployed are a danger to pedestrians.  Daily Mail has confirmed that under the new rules, companies can face fines of up to $55,000 for failing to remove bikes from inappropriate locations. These include footpaths, pedestrian crossings, bus stops and taxi zones. Operators such as Lime could also be suspended from operating if they fail to meet their obligations, which include new safety standards covering issues such as helmets and insurance.  Under the new laws, e-bike operators will need approval from Transport for NSW and local councils before providing their services.  The crackdown follows frustration in Northern Beaches Council, where Lime bikes were introduced in April without consultation, leaving residents furious about bikes being left outside homes and blocking garages. Former prime minister Tony Abbott, a keen cyclist, called them 'street junk' and by June, the council had intervened, with rangers issuing notices to the company to remove bikes parked in unsafe locations. The new laws will give councils greater powers to determine where bikes can and cannot be parked. Lime bikes have become a staple of Sydney, but have also been shrouded in controversy over claims they are cluttering the city's streets  New rules will require Lime to comply with restrictions on where its bikes can be parked  There are estimated to be more than 14,000 Lime bikes across Sydney, with very few dedicated spots to leave them. Daily Mail reported this week on the chaos caused by bikes being discarded around the city and blocking streets following the City2Surf. Minister for Transport John Graham said the changes were aimed at making e-bikes 'safer and more reliable' for everyone. 'Up until now shared bike operators have been able to put their bikes wherever they wanted. That's changing.' 'This is a fast-changing space, and we don't want to miss out on the great transport benefits these bikes provide, but we have to strike the balance on their impact on the rest of the community and these laws do that in a comprehensive way.' There is also a crackdown on illegal private e-bike use, with police given powers to seize and crush bikes that breach the rules. The legal power limit for e-bikes will also be reduced from 500 watts to 250 watts in a bid to improve safety. The changes come after months of safety concerns, following the death of a rider who was killed in a collision with a garbage truck in central Sydney in December last year. The new rules will be introduced in stages over the coming months. Should councils have powers to fine and suspend e-bike operators over street clutter and safety issues? What's your view? Transport Minister John Graham said the NSW Government will have greater control over which e-bikes can operate  Crackdowns on e-bikes have also been announced across the state