The controversial measures, which were rushed through NSW Parliament in December, allowed the police commissioner to make a declaration preventing residents from seeking authorisation for rallies in key areas of Sydney for up to three months after a terror attack.
This left protesters vulnerable to arrest for obstructing traffic or pedestrian movements if they marched through the streets.
While the state government said the laws were necessary to maintain order and peace, activist organisations Palestine Action Group and Blak Caucus took them to court.
Chief Justice Andrew Bell on Thursday found the laws were an "impermissible burden" on various constitutional freedoms in a NSW Court of Appeal decision.
The declaration was imposed after two gunmen opened fire on a Hanukkah celebration at Bondi Beach in mid-December, killing 15 people.
Its restrictions were not eased until February, about a week after police violently broke up a Town Hall protest opposing Israeli President Isaac Herzog's trip to Australia.
During the crackdown, dozens of attendees were pepper sprayed while others were beaten and arrested by police.
The event was also policed under a major events declaration that gave authorities powers to clear the area at their determination.
Asked about the laws ahead of the court's decision, Premier Chris Minns continued to back them.
"I'm not saying there wasn't clashes, I'm not saying it wasn't difficult and I don't regret moving that legislation at all," he said.
"It's tricky when you're introducing changes to legislation like that because there's a necessary infringement on constitutional principles.
"But there are other constitutional principles: the right of individual citizens to go about living their life free of intimidation, persecution or violence."
24°C