The research will examine how often counselling notes are being subpoenaed and used in court proceedings in NSW.
It will also look at how this affects victim-survivors' experience of the court process and their decision to seek support.
The measure follows calls from victim advocates, alongside counsellors and other workers, who have spoken about the impact of having counselling notes forcibly disclosed during criminal proceedings.
The research will examine how existing protections under NSW's longstanding sexual assault communications privilege provisions are operating.
It will also consider alternative models and whether reform is required.
In NSW, the law does not allow for the production of a sexual assault complainant's counselling communications during any preliminary criminal proceedings.
Once a matter reaches trial, sexual assault complainants' counselling records are covered by qualified privilege.
They cannot be compelled, including by subpoena, or adduced unless the court determines the records have substantial probative value, other relevant documents or evidence are not available, and the public interest of disclosure outweighs the public interest of non-disclosure.
Attorney-General Michael Daley said the state government was looking for ways to improve the experience of victims in criminal proceedings.
"We know the criminal justice system can be difficult and re-traumatising for victim-survivors of sexual violence," he said on Sunday.
"This important research will consider existing protections for counselling records in sexual assault matters and how the system can be strengthened to reduce trauma to victim-survivors."
NSW women's safety commissioner Hannah Tonkin said no one should have to choose between seeking justice and seeking therapy to support their healing.
"This research will help identify potential reforms to improve legal protections for victim-survivors' counselling records and ensure they can access support without fear of repercussions," she said.
However, the NSW Bar Association has previously spoken against the proposal, saying courts must reserve the right to assess all available evidence before making a decision.
The move follows steps by the Victorian government to reform laws around access to sex assault victims' confidential counselling records and pre-recording of evidence.
The reforms were also among a suite of recommendations floated by the Australian Law Reform Commission in a 2025 review and the Victorian Law Reform Commission in 2021.
The University of Sydney will conduct the research, led by Professor Rita Shackel, and report back to the government in June.
The research builds on $4.9 million committed in the latest NSW budget to improve victim-survivor experiences in the justice system.
The Labor government recently appointed the state's first independent victims of crime commissioner, who will work to improve the experiences of those impacted by crime and advocate for reforms.
1800 RESPECT (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028