Plans to introduce shorter-term leases of 25 years on graves in NSW with the option of renewing for a maximum of 99 years - or buying the rights to a burial site forever - could face further delays as they come under fresh scrutiny.

The proposals could create two classes of citizens in death, claims Labor, while the government argues they will provide more choice, certainty and free up much-needed burial space.

Sources said Labor seemed to catch the government off guard when it successfully referred proposed regulations for renewable tenure and interment rights in cemeteries to an Upper House committee for review.

Waverley Cemetery offers renewable tenure for its graves. Credit:Michele Mossop

Jason Masters, the administrator of Rookwood General Cemeteries Trust, said he was "surprised" by the "high level" review given the legislation had been passed for five years.