The Coalition government of NSW Premier Dominic Perrottet is facing an electoral wipeout when voters go to the polls in March, according to a new poll.

A YouGov poll, published in The Sunday Telegraph, shows the government 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 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.

It comes after the Premier confessed earlier this month that he wore a Nazi costume to his 21st birthday party.

Mr Perrottet 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 the premier maintains he has 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 pay for 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.

-AAP