Bail laws will also be strengthened to include a temporary, extra bail test for older children charged with certain serious offences while already before the courts on similar allegations.
The proposed legal shift will mean that police and the judiciary will need to have a "high degree of confidence" that young people aged between 14 and 18 will not commit a further serious break-and-enter or car theft while on bail, the state government said on Tuesday.
A 12-month sunset clause will apply to the bail overhaul to allow the changes to be reviewed.
A new offence will be created for the act of "posting and boasting", adding an extra penalty of two years for anyone who steals a vehicle or commits a break-in and also shares material to advertise the crime.
The so-called "performance crime" could encourage others - particularly young people - to commit similar acts, the government said.
Premier Chris Minns said mayors, police and members of the public had called for more to be done to tackle crime, particularly in regional areas.
"We know there is no easy solution, but the reforms we are announcing today look at the big picture at a whole-of-community level, to really intervene and help prevent crime and give young people a chance at life," he said.
A separate pilot program will run in the northern NSW town of Moree, where $13.4 million will be spent on provisions such as extra judicial resources, the Aboriginal Legal Service and a bail accommodation and support service for young people.
Another $12.9 million will be spent on state-wide regional crime measures, including an expansion of youth action meetings and Aboriginal youth patrols in several locations.
Crime rates in regional parts of NSW are broadly higher than in the state's cities.
The Country Mayors Association of NSW has complained that residents in regional and rural areas were more likely to be sexually assaulted, have their cars stolen or homes broken into than their city counterparts.
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