The New South Wales government is exploring a proposal to incentivize commuters in Sydney to use e-bikes and e-scooters, aiming to reduce traffic congestion and pollution.

This initiative is inspired by successful financial incentive schemes in Europe, which have encouraged increased use of e-mobility options.

The proposal may include a per-kilometre tax allowance for commuters, similar to successful initiatives in the Netherlands, Belgium, and France, where such measures have significantly boosted e-bike usage.

Additionally, the government is considering one-off rebates to help offset the purchase costs of e-bikes, reflecting similar initiatives in Queensland and Tasmania.

Research suggests that financial incentives could lead e-bike users to make four extra trips per month, while e-scooter users might increase their trips by six, pending the legalization of e-scooters.

E-scooters are expected to be legalized on public roads in New South Wales later in 2025, which may help address safety concerns through proper measures and public awareness campaigns.

However, safety issues, particularly regarding lithium-ion battery fires and past e-scooter trials in Melbourne, highlight the need for careful implementation of these incentives.

Harri Bancroft, a policy manager at Roads Australia, emphasized that while financial incentives can attract new users, they must be coupled with investments in safer infrastructure to retain them.

Successful international programs in countries like France, the Netherlands, and New Zealand have demonstrated widespread acceptance and participation in cycling initiatives.

Despite potential challenges such as Sydney's hilly terrain, the benefits of cycling—including improved health, reduced carbon emissions, and financial savings—make it an attractive commuting option.

Morgan Harrington from the Australia Institute advocates for innovative transport solutions, arguing that promoting e-mobility could significantly alleviate congestion and pollution.

If the proposal is approved, it may lead to increased demands for dedicated bike lanes, charging stations, and improved bicycle parking at train stations.