Wagga-based NSW upper house MP Wes Fang has said he will join his fellow National members on the crossbench until the government responds to demands to protect regional land use rights.

"It will continue and there is no end date," Mr Fang said.

Deputy Premier John Barilaro announced on Thursday that the National party would no longer support government legislation until their demands to modify koala protection rules were met.

"We want to see a thriving Koala population but we won't do it blindly at the cost of rural and regional jobs and property rights, particularly for farmers." Mr Fang said.

A parliamentary inquiry report in May found that koalas, as an endangered species, would likely face extinction in the state by 2050 without government intervention as their numbers in the wild had fallen to 36,000 across NSW.

Mr Fang said coastal areas were more likely to be affected by the Koala policy but the party needed to take a stand against Sydney bureaucrats making decisions to restrict regional land use.

The exception to the National's parliamentary blockade will be legislation deemed beneficial to regional NSW.

NSW Parliament is due to hold its next sitting day on September 15th and the government has scheduled to debate bills around firearms regulation, child adoption, and budget estimates on that day.

"We will continue the process of what the National party does, which is to have a party room meeting and come to a consensus position," Mr Fang said.

"We will then go out and support [legislation] or not on that basis. All those issues will be discussed in the party room and we will determine positions on that."

Independent Wagga MP Joe McGirr, who regularly supports government legislation with his vote in Parliament's lower house, said Mr Barilaro's actions seemed "extraordinary".

"I understand The Nationals want to show themselves as different to their Coalition partners, but it does seem extraordinary they would threaten to bring down the government over this issue, which they have been dealing with for the best part of a year," Dr McGirr said.

Dr McGirr said he would look into the land use issues raised by the Nationals.

"No one wants to see our iconic koalas become extinct," he said.

"My understanding of the legislation is that it was designed to streamline the process.

"However, if The Nationals have concerns, I would be happy to look at the issues they have raised because we do need to recognise the difficult situation landowners have been put in, particularly in the wake of the bushfires."

Shooters, Fishers and Farmers Party Murray MP Helen Dalton said the Nationals' actions were "very strange" as they had "quietly rubber stamped the Koala State Environmental Planning Policy several months ago".

Labor opposition leader Jodi McKay said the people of NSW had been "betrayed" by the government's instability.

"We have at the moment in NSW about 300,000 people who do not have a job. We're in the middle of a pandemic, we are in the middle of a recession," she said.

"We have families right across NSW who today are wondering who they are going to put food on the table, how they are going to how their mortgage, how they are going to pay their rent, who are dependent on a stable, functioning government.

"Today we have seen the Deputy Premier effectively blow up that government and blow up the Coalition."

EARLIER - 12.50pm

Wagga-based NSW upper house MP Wes Fang has joined a group of Nationals that have threatened to quit government ranks unless koala protection rules are modified in favour of landowner rights.

Mr Fang accompanied Deputy Premier John Barilaro and other Nationals ministers on Thursday morning to announce that the party would no longer support government legislation until their policy demands were met.

Mr Barilaro said Mr Fang was one of the MPs who felt "outraged" by an apparent "betrayal" from the government during talks to modify land use rules.

"I don't want to be here today talking against the Coalition," Mr Barilaro said.

"I have a lot of respect for the Premier of this state...and I stayed tight and united with the premier.

"But when it comes to issues that are important to our communities, the communities that we were elected to represent, then it is important that we stand tall outside of the Coalition agreement."

IN OTHER NEWS:

The NSW National party will now be "effectively on the crossbench" and will stop attending joint party room meetings with the Liberal party and will not support government legislation in Parliament unless it was "relevant" to regional NSW.

Mr Barilaro said NSW would become the "laughing stock" of Australia if the new Koala Habitat Protection provisions in the State Environmental Planning Policy were allowed to stand and it would damage efforts for regional NSW to recover from drought and bushfires.

The Nationals have sought changes to the policy to define "core koala habitat" and remove privately held native forests and agricultural land from the koala habitat protection rules.

Mr Fang did not speak at the press conference and has been contacted for comment.

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