Coalition on track to lose NSW election

The NSW government is on track to lose the March state election as Premier Dominic Perrottet's popularity wanes.

A YouGov poll, published in The Sunday Telegraph, shows the coalition well behind in both first preference and two-party preferred standings.

Labor led the coalition by 56 per cent to 44 per cent on a two-party preferred basis, while it was ahead by 39-33 per cent on first preferences.

Both figures point to a parliamentary majority for Labor, which was buoyed in the poll by strong backing from young voters.

Support for Mr Perrottet also dropped, with only 44 per cent of those surveyed preferring him over Labor leader Chris Minns.

But Mr Minns says he isn't paying attention to the latest poll as many voters remain undecided.

"I don't want anyone in NSW to think we're taking anything for granted," he told reporters on Sunday.

"We've got a huge task ahead of us. We're hungry but we're humble as well about our prospects."

A September poll from Newspoll and Resolve also showed NSW Labor on track to claim government for the first time since 2011, leading 54-46 per cent on a two-party preferred basis.

Sunday's YouGov poll comes after Mr Perrottet confessed earlier this month that he wore a Nazi costume to his 21st birthday party.

The premier apologised for his behaviour, describing the incident as a naive mistake that did not reflect his current views.

He made the admission after the issue was raised by Transport Minister David Elliott, but Mr Perrottet maintained he had the support of his party.

Meanwhile, NSW Labor has also been embroiled in controversy with one of its high-profile upper house candidates pulling out of the election race on Friday.

The withdrawal of Khal Asfour, the mayor of Canterbury Bankstown, came after allegations he used ratepayer funds to buy designer clothing and spa treatments.

Mr Minns took exception to some of the allegations and defended backing Mr Asfour.

"I didn't know about these revelations ... at any stage of the election cycle, you're going to have situations like this," he said last week.

NSW voters go to the polls on March 25.