The increased use of electric bicycles and scooters for commercial and transport purposes across Australia has sparked calls for regulatory enforcement and safety reforms amid growing insurance claims and public safety incidents.
The Victorian Automotive Chamber of Commerce (VACC) has renewed its push for state and federal authorities to uphold existing regulations under the Road Vehicle Standards Act 2018.
The law limits e-bikes to 250-watt motors and 25 km/h assisted speed thresholds, yet many bikes in urban areas – particularly those used by gig economy workers – reportedly exceed these specifications and remain unregistered.
“The rules are already there under the Road Vehicle Standards Act. But they’re being ignored by overseas sellers, by delivery platform operators, and increasingly by riders who use these bikes for commercial gain,” said Peter Jones (pictured), CEO of the VACC.
He noted that some delivery operators and riders are using high-powered models, effectively treating them as commercial transport without meeting corresponding regulatory obligations such as vehicle registration, rider licensing, or insurance.
Jones expressed concern about the recruitment of underage and unlicensed individuals to operate these vehicles, citing safety, legal, and insurance implications.
“It’s one thing to ride a compliant e-bike recreationally,” he said. “But when you’re using a 1,000-watt machine all day in city traffic to deliver for a company, you’re operating a commercial vehicle. That must come with legal responsibilities, just like it would for a van, a ute, or a motorbike.”
The VACC, in partnership with Monash University, is conducting a compliance study focused on e-bike activity in Melbourne’s central business district to gather data on usage trends and potential risks.
The VACC’s recommendations include:
In Queensland, the Royal Automobile Club of Queensland (RACQ) is backing a state-level parliamentary inquiry into the safety of personal mobility devices (PMDs), including e-scooters. The review follows a rise in hospital admissions and insurance claims connected to scooter-related incidents.
RACQ is contributing to the inquiry based on findings from research conducted with the Jamieson Trauma Institute, which identified a notable increase in injuries and fatalities involving e-scooters across the state.
In 2024, 1,504 emergency department presentations involved e-scooters, up from 1,273 the year before. Eight fatalities related to PMDs were recorded.
RACQ Insurance also observed a 22% rise in claims involving bicycles and e-scooters from March 2024 to February 2025, totalling 186 incidents. High-traffic tourist areas like the Sunshine Coast and Townsville were identified as hotspots, particularly during afternoon hours coinciding with peak travel and school pickups.
