Almost 800,000 people failed to have their votes counted at the 2023 NSW election, prompting a government-led inquiry into the state's "democratic gap".
Special Minister of State John Graham said the inquiry would look at ways to boost the state vote after 791,759 eligible voters failed to get their vote counted at the March poll, which was won by Labor after 12 years in opposition.
Some 74,677 people were eligible to vote but not enrolled, 553,646 were enrolled but did not vote and 163,436 people cast an informal vote.
"It is both alarming and disappointing that almost 800,000 votes did not count at last year's NSW election," Mr Graham said in a statement on Monday.
"Unless we tackle this problem, our political system will be less representative and less responsive than it should be.
"Closing this democratic gap is important for the future of our electoral system."
The parliamentary inquiry would examine potential reforms to support an "ambitious" target of 100 per cent participation in future NSW elections, Mr Graham added.
Findings and recommendations will be considered before the next state poll, which is due in 2027.
The voter-turnout rate - the proportion of people who vote at an election - slipped to 90.16 per cent in 2023 from 92.60 per cent at the 2011 election, according to NSW Electoral Commission data.
The informal-voting rate was 3.46 per cent in 2023, up from 3.20 per cent in 2011. More than 100,000 extra non-voter notices were issued.