An overhaul of hate speech laws in New South Wales being planned by the State Government would make it easier for the courts to prosecute offenders.

Attorney-General Gabrielle Upton has ordered a review of Section 20D of the Anti-Discrimination Act, which will take place over the next couple of months.

Recent events such as the failure of the Director of Public Prosecutions (DPP) to charge Ismail Al-Wahwah, leader of pan-Islamic party Hizb ut-Tahrir, earlier this year after he called for a "jihad of Jews" is one of the reasons for the move.

"The section of the Anti-Discrimination Act that deals with racial vilification has been in place for quite some time. There have been no prosecutions," Ms Upton said.

"I've had meetings with members of various parts of our community who say it's just not working.

"It's too hard to get a prosecution for a criminal offence."

A parliamentary inquiry examined the section of the Anti-Discrimination Act and delivered its report into the state's racial vilification law in 2013.

It found the effectiveness of section 20D was hindered by a number of procedural impediments and made 15 recommendations for the Government to consider.

The Attorney-General said she wanted to adopt most of those recommendations, including extending the time period for when an act can be prosecuted.

"But we want to go a bit further. We really want to look at: does that criminal offence of racial vilification stack up? Does it work?" Ms Upton said.

Greens MP David Shoebridge was part of the parliamentary committee.

"This is a Government waiting two years to respond to a unanimous parliamentary inquiry that recommended some pretty sensible and obvious reforms to our racial vilifications laws to actually make them work," Mr Shoebridge said.

"We've got functioning laws at the moment but those laws need to be improved so when we find bigots in our society causing racial vilification they can actually be brought to court and prosecuted."

Opposition Leader Luke Foley agreed the legislation needed to change, but wanted the offence to come under the Crimes Act instead of the Anti-Discrimination Act.

"No one's ever been successfully prosecuted under these provision of the Anti-Discrimination Act," Mr Foley said.

"There needs to be a new offence created."

The State Government said it expected to bring changes to legislation before Parliament early next year.