Muslim prisoners classified as "extreme high-risk restricted" will be allowed to purchase Halal meat again after the Baird government relaxed a ban imposed on them receiving money from family.
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Tough restrictions on 13 prisoners accused or convicted of terrorism offences were introduced by former attorney-general Brad Hazzard during the March election campaign, including forcing them to speak English during visits.
Weekly allowances to the prisoners were also cut from $100 to $13, preventing them from buying Halal-prepared meat, which cost $32 a week. Only "religious friendly" vegetarian dishes were provided by Corrective Services.
Families of the young men, some awaiting trial, said the rules could be a breach of human rights and were causing the families great distress.
Six of the men began a seven-week hunger strike in April and refused visits.
Minister for Corrective Services David Elliott on Friday changed the regulations to allow the Commissioner for Corrective Services, Peter Severin​, to permit small amounts of money to be paid into the inmates accounts by family for food purchases, on a case by case basis.
The Australian National University's Clarke Jones, an expert on the impact of prison systems on the rehabilitation of terrorists, said it was important to allow young offenders to observe religious beliefs and help them to access Halal food.
Being able to discuss religion with imams inside prisons, in Arabic, was "healthy" and assisted their re-education, he said.
If NSW Corrective Services wanted to understand the conversations between inmates and visitors, it should appoint Arabic speakers, he said.
"The more restrictive the conditions, the more justification they have for their grievances against the West and of the oppression of Muslims," Mr Jones said.
"The last thing we want to do is contribute to this justification for violence."
He said the NSW prison system was very strict, with no cash, and very different to prisons in the Philippines and Indonesia, where there was concern that prisoner money may be going to support drug operations or terrorist operations.
"Australia needs to rethink knee-jerk political responses to terrorism offenders. Unfounded political commentary is having a dangerous impact in Australia at the moment," he said.
A Corrective Services spokesman said: "This amendment is an administrative adjustment which gives the commissioner the discretion to relax the restriction if it is in the interests of safely managing the inmate."
