A Traditional Indigenous ceremonial site under threat of development in the central tablelands of New South Wales has become central to the state's Greens' push for greater cultural heritage rights.

Ahead of next week's state election, Wiradjuri and Badu Island woman and Greens upper house candidate Lynda-June Coe has called for Gaanha-bula (Mt Canobolas), five kilometres south-west of Orange, to be protected in line with her party's reform proposals on cultural heritage for greater community decision-making power.

Council proposals for a bike trail on Gaanha-bula have circulated since 2015, leading to community division with more formal plans coming together in recent years.

The area is a Traditional men's initiation site and a birthing place with significant ties to Dreaming stories.

The Greens say New South Wales is the only jurisdiction in Australia without standalone First Nations cultural heritage laws.

Where cultural significance is recognised across the state, developers can apply for an impact permit which, according to the NSW government website, is a "legal document that gives permission to harm Aboriginal objects or places and sets out conditions to comply with".

"Anyone proposing to carry out an activity that may harm an Aboriginal object or a declared Aboriginal place must investigate, assess and report on the harm that may be caused by the activity they propose," the Government's Guide to Investigating, Assessing and Reporting on Aboriginal Cultural Heritage in New South Wales reads.

The assessments are intended to determine what harm could be caused, which impacts are avoidable and which are not and reducing the impact of developments where possible.

"Where harm to Aboriginal objects and declared Aboriginal places cannot be avoided, proposals that reduce the extent and severity of harm to should be developed and detailed in an Aboriginal cultural heritage assessment report," it reads.

On Friday, Ms Coe said the current laws in NSW are "failing First Nations people across the state".

"The measures in place do not protect our sacred sites, histories and the stories that are written in the land," she said.

"The Greens are committed to strengthening our right to protect Aboriginal cultural heritage through a self-determined and First Nations-led legislative reform to ensure the desecration and destruction of significant sites is no longer common Government practice."

Last August, Greens MLC Sue Higginson addressed NSW Parliament campaigning for Gaanha-bula to be recognised as a sacred site and greater consultation processes amid a disconnect between the council, the local Aboriginal community and grassroot activist groups after independent surveys from archaeologists and elders found stone tools and rock engravings on the mountain in 2021.

​​In response, NSW Minister for Aboriginal Affairs Ben Franklin called the bike trail "an excellent project" among concessions on significance to Indigenous people.

"But this (the proposal) must be balanced with the protection and preservation of Aboriginal cultural heritage, which includes our culturally significant sites.

"I appreciate the concerns raised and I understand that the proposed development is being designed to leave wide buffers around areas of Aboriginal cultural heritage and known sensitive ecological areas."

In the days following Ms Higginson's comment's Wiradjuri elder Uncle Neil Ingram told the National Indigenous Times "there was no consultation whatsoever and we'd be trying and trying and trying to get consultation, but it never did happen."

Orange City Council communications and engagement manager Nick Redmond said consultations had occurred, but that the measures could go further while then-Shooter and Fishers Party, now-Independent MP for Orange Phil Donato said the bike trail presented economic and tourism opportunity in the area.

Mr Donato said a "balanced approach" was required and distanced himself from the council's management from the proposal.

On Friday, Greens Candidate for Orange, David Mallard said Gaanha-bula highlights the cultural protection issues in NSW and that he is proud to back Ms Coe and Wiradjuri elders to set out new framework empowering First Nations people in decision-making.

"The proponents, in this case Orange City Council, are in the driver's seat, while the First Nations people who are traditional custodians and knowledge holders of such significant sites are subject to 'consultation' which all too often falls short of seeking to genuinely understand and accommodate their views," Mr Mallard said.

"(New) approach would create the opportunity to ensure places like Gaanha-bula can be protected, shared and enjoyed in ways that respect and celebrate their full and true history."

Ms Higginson, also chair of the Upper House Inquiry in Culture is Identity Bill 2022, said the current laws threaten to give mining companies too much sway.

"It is high time NSW puts the decision making power back to communities so they can determine how sites are managed and protected," she said on Friday.

"There is a huge opportunity in Orange for Gaanha-bula to become a celebrated destination for tourism and storytelling - but the cultural knowledge holders need to be empowered to make those decisions."

The National Indigenous Times has contacted the offices of the NSW Minister for Environment and Heritage James Griffin, and Mr Franklin, for comment.