VACC warns unregistered commercial e-bikes are flouting existing law

The Victorian Automotive Chamber of Commerce (VACC) is calling on both State and Federal Governments to urgently enforce existing national laws that regulate electric bikes (e-bikes), as growing numbers of unregistered, high-powered models are being used in commercial operations across Melbourne.

Despite the Road Vehicle Standards Act 2018 already providing a framework for what constitutes a compliant e-bike in Australia—including a 250-watt motor limit and a top assisted speed of 25 km/h—many online international sellers continue to supply bikes that exceed these limits. These vehicles, often used for food delivery or courier services, are effectively operating as unregistered motorbikes on public roads.

“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,” VACC chief executive Peter Jones says.

The issue is particularly pressing in the gig economy, where underage and unlicensed riders are frequently recruited to operate high-powered, non-compliant e-bikes. These vehicles are rarely registered, insured, or safety-checked, yet they’re being deployed daily as commercial transport across busy urban areas.

“It’s one thing to ride a compliant e-bike recreationally,” Jones says. “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 currently undertaking a compliance study in the Melbourne CBD to analyse the scale and risks of unregistered e-bike use in commercial settings. 

With public frustration growing around the unclear laws, underage riders, and the misuse of e-bikes on footpaths and bike lanes the VACC is calling for urgent action, including:

• Stronger enforcement of the Road Vehicle Standards Act 2018
• Mandatory registration for e-bikes used commercially
• Minimum age and licensing rules for high-powered models
• Penalties for businesses that enable the use of non-compliant vehicles
• A public education campaign on e-bike compliance and road use

“We’re not against innovation. We support e-bikes as part of a clean and modern transport mix,” Jones says. “But we already have the laws. Now we need governments to act, to protect the public, support law-abiding businesses, and restore fairness and safety on our roads.”