The biggest changes target adult cyclists, who will be forced to carry identification while riding and will face a $319 fine if they fail to wear a helmet.
That’s more than four times the current fine of $71, and cyclists who fail to stop at pedestrian crossings or hold on to moving vehicles will also face a $319 fine.
Fines will leap to $425 for cyclists who disobey red lights or who are caught riding in a dangerous manner.
Cyclists will have a 12-month period of grace for the new ID rules, but fines of $106 for failing to carry ID will apply from March 2017.
NSW Roads Minister Duncan Gay said a working committee was consulted over the new rules, with the group ultimately rejecting any proposal to force cyclists to be licensed and registered.
"We hope this is the right way to do it, but if we need to do more we will, if we need to wind it back we will," Mr Gay said, speaking with Fairfax.
"We needed some way of identification and enforcement; suggestions including licences and registration were rejected by the committee. In the end we came to a consensus - that is better than being at war when going ahead."
Cyclists aren’t the only road users facing new or increased fines from March next year, with drivers also hit if they travel too closely to riders.
Vehicles must leave a gap of one metre when passing cyclists, rising to 1.5 metres at speeds beyond 60 km/h. A $319 fine and two demerit points is the penalty for failing to comply.
Riders will also be ‘advised’ to leave a one-metre gap when passing pedestrians on shared pathways.
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