Laws will be introduced to crack down on "post and boast" offences to cover serious assaults and robberies that have left members of the queer community reeling.
The NSW legislation creates a new penalty for offenders who lure victims on false pretences, including via dating apps, only to target them for their sexuality.
The changes come after an explosive ABC investigation in February uncovered confronting videos of Islamic State sympathisers hunting and bashing gay and bisexual boys on camera in Sydney.Â
Some of the victims were kicked, punched and verbally abused with homophobic epithets before videos of the "bait and bash" attacks were posted in social media chats.
Premier Chris Minns said the violence unleashed was "sickening and completely unacceptable" and needed to be remedied through tough laws.
"Everyone deserves to feel safe in NSW, no matter who they are," he said.
Publicly threatening or inciting violence on the grounds of a protected attribute, such as sexual orientation or gender identity, would be increased from three to five years' jail, the government said.
An aggravated version of this offence will also be created, carrying up to seven years' imprisonment.
Other amendments will make it easier for prosecutors to prove an offence was motivated by prejudice or hatred.
"These laws send a clear message that if you target someone out of hatred or try to lure someone into harm, you will face serious consequences," Mr Minns said.
Labor minister Penny Sharpe, who became the first open lesbian in NSW parliament in 2005, said the reforms were aimed at curbing homophobic hatred and its violent manifestations.
"Violence against the LGBTQIA+ community has no place in NSW," she said.
"The law will come down hard on those who seek to harm others."
The government apologised in 2024 to victims of hate crimes targeting gay men after a world-first inquiry investigated dozens of unsolved deaths over the span of four decades.
NSW was the last Australian state, also in the same year, to issue an apology to people convicted under laws criminalising homosexuality, 40 years after they were decriminalised.
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