“Racial hatred is unacceptable – and under this new legislation, it will be a crime to publicly and intentionally incite racial hatred,” Attorney-General Michael Daley said.
“It is important for members of our community to be protected from conduct that causes them to fear for their safety, or to fear harassment, intimidation or violence.”
The law would cover public acts that intentionally incite hatred on the basis of race and include a carveout for “directly referencing religious texts during religious teachings”.
Offences would carry a maximum two-year jail term or fines up to $11,000 for individuals and $55,000 for corporations.
The government said the change was aimed at responding to “recent disgusting instances of antisemitic conduct and hate speech, and makes clear that inciting racial hatred has no place in NSW”.
A group comprising Labor LGBTQIA+ members said the law targeting harassment outside places of worship should protect more than just religious people.
“Hate is not specific to any one community, and the law must reflect that. It must protect everyone,” Rainbow Labor NSW said.
NSW Council for Civil Liberties called the proposed expansion of police powers to move on protesters near religious buildings was a “knee-jerk reaction” that only suppressed the right to protest.
“The police already have broad powers to move people on and prosecute the use of hate symbols, arson, graffiti and property damage,” president Timothy Roberts said.