The NSW government will close a loophole to protect community facilities from Aboriginal land claims after Bondi Icebergs became the centre of a dispute.

Crown Land Management legislation is set to return to State Parliament this month after debate was paused earlier in the year amid concerns raised by Aboriginal land councils.

The reforms aim to close what the government calls a 'loophole' in the current system, where community facilities operating on Crown land can become vulnerable to land claims if they have breached lease conditions, even while continuing to serve the public.

The La Perouse Local Aboriginal Land Council on Friday confirmed it had lodged a land claim over the Bondi Icebergs complex, which sits at the southern end of Bondi Beach and includes the ocean pool, swimming club and licensed venue.

The venue, in Sydney's eastern suburbs, is widely regarded as one of Australia's most photographed destinations and attracts tourists and celebrities from around the world.

Oprah Winfrey, Mick Jagger, Mariah Carey, Paris Hilton and Kim Kardashian, as well as Margot Robbie, Kylie Minogue and Chris Hemsworth are among the stars who have visited.

The land claim follows rising tension between established community facilities and the state's Aboriginal land rights framework.

Across NSW, 44,026 Aboriginal land claims are awaiting assessment.

More than 30 claims involve surf lifesaving clubs, including every surf club along Sydney's eastern beaches.

Claims have been lodged against Bondi, North Bondi, Bronte, Tamarama, Clovelly and Coogee surf clubs, while newer applications have targeted facilities at Killcare, Soldiers Beach and Toowoon Bay on the Central Coast.

Government sources say concerns that more community organisations could face uncertainty over their future are adding pressure for legislative change.

The issue comes after the Northern Suburbs Tennis Association was ordered to leave its long-time home on Sydney's north shore by an Aboriginal land council that gained ownership following a successful land claim in 2022.

Under current laws, Crown land can become claimable if it is not being used or occupied for a valid public purpose at the time a claim is lodged. 

Critics argue technical breaches of lease conditions can create uncertainty, even when facilities remain heavily used by the community.

The proposed reforms aim to clarify how land claims are assessed and prevent minor or unintended breaches from impacting the status of community facilities.

One example raised during consultations involves surf clubs that may have inadvertently breached lease conditions through activities not specifically approved in Crown land agreements, such as operating a coffee cart or similar venture.

Supporters of the changes argue community assets shouldn’t face uncertainty because of minor administrative issues when they continue to provide services for thousands of people every year.

The Minns Government has spent months consulting with community groups, sporting organisations and Aboriginal land councils after pausing debate on the legislation.

The government says the reforms are intended to better reflect the original purpose of Crown land laws while giving greater certainty to both land councils and community organisations.