Labor will give local councils the power to "dramatically strengthen" planning and trading rules to support live music venues if it wins government next month.
Leader Chris Minns announced on Wednesday that a Labor government would invest $103 million in the state's "contemporary" music scene, including "bringing back lost venues".
The strategy includes allowing live music venues longer trading hours and lower licence fees.
Labor would establish a "Cultural State Environmental Planning Policy" allowing councils to extend trading hours and change rules governing outdoor performances, planning and sound regulations.
The strategy also includes "harmonising" liquor and planning approvals to make it easier to open new venues and incentives to allow floor space and density bonuses for developments which include music venues.
Labor said it would streamline sound complaint processes for venues as seven NSW agencies now regulated venue sound.
The issue of live music clashing with the amenity of neighbours has grown in the Newcastle CBD in recent years as new high-rise apartments have proliferated around pubs and clubs.
Labor said two weeks ago that it would establish an entertainment precinct in inner-city Newcastle in which noise levels would be governed by the council and not the Liquor Act.
Swansea MP Yasmin Catley, the shadow minister for customer service, said a Labor government would work through noise and other issues with councils and communities.
"It's important we demonstrate to the industry that we support them and we want them to grow," she said.
"We have to be respectful. No one's suggesting we're going to be anything but respectful, but that doesn't mean you don't do it because it's too hard."
She said a more vibrant industry would develop opportunities for the Hunter's talented performers and jobs in lighting, sound and other aspects of music production.
Ms Catley cited changes to outdoor dining as an example of successfully revised planning and licensing rules.
"We have to be a little bit creative. Just because something was done a certain way in the past doesn't mean it can't be done a different way into the future.
"We all want our cities to be vibrant. Well, they aren't vibrant if there aren't people in them.
"It's a 10-year plan. We're not going to do anything overnight. We think it will take that long to revitalise what is decimated.
"Music's just disappeared from this city, and there's nothing good about that."
The Labor policy announced on Wednesday includes establishing a new Sound NSW office, modelled on Screen NSW, to develop and deliver a 10-year music strategy.
Labor would provide up to $250,000 to develop business cases for permanent outdoor festival and concert infrastructure in Sydney and regional NSW and set up an $8 million fund to support soundproofing, ventilation and video screen technology in venues.
Newcastle's once-thriving live music industry has declined in recent decades as venues have either closed or stopped booking acts.
The Cambridge Hotel, one of the city's few large performance spaces for contemporary music, is due to close in June to make way for high-rise student accommodation.
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