A new law that affects government land being transferred to Indigenous ownership is being described as a "regression" by a peak body.
The change comes as more than 43,000 land claims remain unresolved in NSW.
Premier Chris Minns said the legislation was "hugely important" but needed change.
Aboriginal Land Councils can claim unused or unoccupied Crown land, or land held by the state government on behalf of the public, under the Aboriginal Land Rights Act.
The amendments enable the lands minister to retrospectively convert an invalid or defective lease on Crown land into valid one by marking it as in-use.
"The minister can, by the stroke of a pen, make a decision that certain land claims are now not on the table," council chair Raymond Kelly said.
The government first proposed the bill in March, deferring it for further community consultation and winding back some of the changes.
Lands and Property Minister Steve Kamper said at the time the amendment aimed to address "edge cases" in which community assets became claimable due to technical errors.
Paul Francis has managed the Love'n Deuce tennis club in Naremburn on Sydney's lower north shore for the past 40 years.
Love'n Deuce has now been evicted from the site, which Mr Francis partly puts down to "poorly worded legislation".
Mr Francis said the lease had been granted to new tenants, Racquet Club.
Dr Kelly said the consultation period for the law changes was "forced" and "short", but the NSW Aboriginal Land Council was open to further discussion.
Councillor Charles Lynch said despite the legislation change being "very disappointing," NSWALC was committed to moving forward.