New South Wales will become the first Australian state to impose strict new regulations on e-bike rental operators such as Lime, giving councils and police much greater power to control where the devices are used and parked. The move follows growing complaints that thousands of hire bikes have been left blocking footpaths, pedestrian crossings and driveways across Sydney, with residents and local authorities, including Northern Beaches Council, accusing companies of rolling out fleets without proper consultation.

Under the new rules, operators face fines of up to $55,000 for failing to remove bikes from banned locations, and could be suspended if they do not meet safety obligations covering helmets and insurance. Companies will now need approval from Transport for NSW and local councils before operating, and there are believed to be more than 14,000 Lime bikes across Sydney with few dedicated parking spots. Police will also gain powers to seize and crush illegally used private e-bikes, while the legal power limit will be cut from 500 watts to 250 watts, changes prompted partly by the death of a rider in a collision with a garbage truck in December.