About half a million e-scooters would be off-limits to under-16s but could mingle with cars, bikes and pedestrians in certain areas under possible NSW law changes.
E-scooters are stuck in a legislative bind, being available to purchase but illegal to operate in public spaces.
Draft rules released on Monday propose allowing them on bike paths and shared pathways, provided riders give way to pedestrians and stick to 20km/h speed limits.
Riding on roads would be allowed to a maximum speed of 50km/h.
Helmets would be mandatory, 0.05 blood alcohol limits would be enforced and, consistent with all jurisdictions except ACT and European recommendations, a rider would need to be at least 16 years old.
Transport Minister Jo Haylen said NSW had left e-scooter use in a legal grey area while all other states had introduced regulations.
"We want to fix what is a bit of a legal anomaly," she told ABC radio.
The plan would help the state realise the benefits of increased use of e-mobility devices, including e-scooters and e-bikes, the NSW government said.
The NSW changes would prevent under 16s from riding e-scooters on the roads. (Diego Fedele/AAP PHOTOS)
The devices would reduce small car trips, reduce strain on parking spaces and make train stations, jobs, services and retail precincts easier to access.
Under the draft plan, councils would retain the power to regulate shared e-scooters, including setting speed limits and banning them from parts or all of a local government area.
Shared e-scooters trials are underway in Kogarah, Wollongong and a handful of other council areas.
Large Sydney councils are due to address MPs on Tuesday on the benefits and dangers of e-scooter use amid concerns that riders will leave the vehicles all over footpaths at the end of their journeys.
Vision Australia has recommended forcing shared e-mobility companies to install technology that allows their devices to be moved remotely when parked outside designated areas.