Laws targeting racial and religious hate crimes were pushed through NSW parliament in February after a spate of anti-Semitic attacks.
But the selective changes fuelled complaints from other marginalised groups, and have now prompted a six-month review to determine whether their scope should be widened.
Led by a former judge who steered a prominent inquiry into gay hate crimes, the review follows plans by Victoria to expand its hate speech law to protect the LGBTQI community and people living with disability.
Equality Australia said NSW missed an opportunity in the February reforms by overlooking other minorities.
"The same extremist groups targeting Jewish communities are also threatening trans people, rainbow families, migrants and other marginalised people," chief executive Anna Brown said.
"Excluding vulnerable groups from legal protections sends a dangerous and divisive message that some people are more important than others."
Labor MP Maryanne Stuart defended the laws during debate over anti-Semitism.
"We do not think these anti-Semitic acts begin and end with graffiti and setting fire to buildings and cars," she told parliament on Thursday.
"The NSW Minns Labor government makes no apology for putting community safety first and cracking down on hatred."
The review will be headed by former NSW Supreme Court judge John Sackar, whose inquiry report on LGBTQI hate crimes as far back as the 1970s found police failed to properly investigate potential gay-hate attacks.
It was important to give vulnerable communities confidence the laws were effective, Attorney-General Michael Daley said.
"Hate speech is unacceptable and has no place in NSW," he said.
"The NSW government has put in place a number of measures to strengthen social cohesion and has made it a criminal offence to incite hatred on grounds of race."
Mr Sackar is due to report back by November 5.
Anti-Semitism and Islamophobia has risen sharply in Australia since since October 2023 when war erupted in Gaza.
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