The New South Government has put its controversial proposals to change the management of Crown lands on hold after a strong backlash from the state's Aboriginal land councils.

A large protest marched on New South Wales parliament house on Tuesday against proposed amendments to the management of Crown lands, following an emergency meeting of Land Council leaders on Monday.

The government retreated from the plans late on Wednesday.

Critics of the proposed changes described them as an "attack by stealth" on the NSW Aboriginal Land Rights Act.

There are roughly 60,000 unresolved land claims under the Act at present, which could have faced serious implications if the proposed amendments become law.

NSW Aboriginal Land Council chairperson Dr Raymond Kelly said the proposed changes could see substantial amounts of Crown Land removed from the Crown Land register, which could have major effects of some of the local land councils.

Dr Kelly, a Dhangatti Gumbayngirr man, told NITV the proposals had not been "appropriately... communicated" or subject to appropriate consultation; "not just for us in the land rights movement, but to all people of NSW".

The current Act stands allows land councils to claim land if it is unused or has been improperly leased. One of the amendments, put forward in a statutory review introduced to parliament last week, allows for any lease, even those for unused land, to be deemed legal.

NSW Aboriginal Land Council chief executive, Dunghutti Gamilaroi woman Clare McHugh, told NITV the proposed amendments would have been of concern to all residents of NSW.

"It really is the NSW government seeking to overturn decisions by the High Court, which didn't fall in their favour," she said.

"There are bigger and broader implications that everyone should be concerned about. It might start with Aboriginal people in NSW, but where does it end? We're the canary in the coalmine."