Sydney commuters would be paid to ride an e-bike or e-scooter to work under a European-inspired financial incentive scheme being assessed by the NSW government, in a bid to promote the uptake of electric-powered devices on streets across the state.
Financial incentives for e-micromobility devices were proposed in a secret internal document circulated by a senior government bureaucrat in October, three days before then-transport minister Jo Haylen announced a pathway for the legalising of e-scooters on public roads.
Eugenio Tarantola rides an e-bike to the office in Sydney.Credit: Flavio Brancaleone
Among the sweeteners suggested were a tax incentive that would allow riders to claim a per-kilometre allowance for each commute, which could replicate successful schemes applied in the Netherlands, Belgium and France, with the latter country observing cycling participation more than doubled in the second year of the program.
Transport for NSW projected that e-bike riders would undertake four additional trips a month with the backing of the financial incentive, while e-scooters, which would be made legal subject to the passing of legislation later this year, would be used on six further occasions a month.
“When the conditions are right, the experience in other jurisdictions shows that financial incentives can increase ownership and ridership,” read the internal document, obtained by the Herald.
“Locally, research has shown that financial incentives would encourage people in NSW who already own a bike (including e-bikes) and e-scooters to take more trips.”
The document also suggested introducing one-off rebates to offset the expense of purchasing an e-bike, mirroring schemes implemented in Queensland and Tasmania over the past two years
Australia Institute research manager Morgan Harrington, who last year co-wrote a discussion paper recommending a ride-to-work cycling allowance be introduced, said fresh ideas are needed to confront transport challenges posed by rising populations and urban sprawl.
“If you invest in roads for cars and incentivise driving, you get more traffic and more pollution. But if you build more bike paths, you’ll get more people on e-mobility devices, which means less congestion and less pollution,” Harrington said.
How e-bike financial incentive schemes work around the world
- France – a per kilometre tax incentive scheme was originally introduced in 2014, improving cycling participation rates by 50 per cent in the first six months and 125 per cent in the second year.
- Netherlands – a tax-free cycling allowance aimed at encouraging car users to swap to an e-bike increased the number of e-bike commutes to 68 per cent in the first month, and 73 per cent in the first year.
- Belgium – tax credits paid out from the capped financial incentive riding scheme, which is paid through employers as part of a worker’s salary, doubled from €33 million in 2014 to €61 million in 2019.
“Australians are addicted to travel by car, even for short trips that might be more efficiently made on a bike or scooter.”
There are more than 1 million e-bike and e-scooter owners in NSW. Almost a third of residents in central Sydney own an e-bike, the internal document says, which are most often used by those in their teens and twenties.
E-bikes have drawn safety concerns due to the fire threat posed by their lithium-ion batteries, while an e-scooter trial in Melbourne was abruptly ended last year after the city’s footpaths were declared unsafe for pedestrians.
Roads Australia policy manager Harri Bancroft said financial incentives can “break down the first barrier” for riders but wouldn’t suffice to retain new users.
“It needs to be a two-pronged approach, where we’re incentivising and supporting people to uptake micromobility,” Bancroft said. “We need to make sure we’re also investing in safer infrastructure or implementing safer speed so that people feel comfortable, no matter where they are.”
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