NSW Premier Chris Minns addressed his party's slump in support, vowing Labor would fight to keep leading Australia's most populous state.
"Voters will make their decision in the next few months ... we're up for that challenge," he told reporters in Sydney on Monday.
Support for Labor and the coalition in NSW dropped to record lows in the latest Resolve Political Monitor polling.
Labor's primary vote was 29 per cent - down three points since May.
It was the party's equal-worst result since its 2023 election win, potentially worrying news ahead of a state vote in March 2027.
Support for the coalition also dipped three points to 23 per cent.
Conversely, support for Pauline Hanson's One Nation surged to 25 per cent - up three points since May.
Election analyst Ben Raue said it was a trend happening across the country.
"We're seeing this trend in every jurisdiction in Australia - One Nation reaching new highs," he told AAP.
If an election went the way of Monday's poll, Mr Raue suspected a Labor victory with a fierce battle on the right between One Nation and the coalition.
"The coalition has demonstrated it's not in a very strong position ... it's not really capable of winning elections federally at the moment," he said.
Mr Minns conceded One Nation was in its strongest-ever position but vowed to up the fight.
Labor won 45 of NSW's 93 lower-house seats in 2023 to govern in a minority.
"We've got a stable government that has had as its guiding principle responsibility and common sense," Mr Minns said.
"Our values and our principles are so antithetical to that party."
Mr Minns remains the preferred premier, with 36 per cent of voters believing he is best for the job - down from 38 per cent.
It was a significant lead over Opposition Leader Kellie Sloane, whose rating dropped from 18 per cent to 16 per cent.
Federal Opposition Leader Angus Taylor said One Nation did not have the answers to issues such as housing.
"One Nation is a one-person show," he said.
"It's not fit to govern, and they don't have the policies that will get us out of the crisis."
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