Legislation to give first-home buyers the option to choose between paying an annual land tax, or a larger one-off stamp duty payment, on all properties up to $1.5 million is being debated in the NSW parliament on Thursday.
Premier Dominic Perrottet said if the Property Tax (First Home Buyer Choice) Bill 2022 passes, he will call Governor Margaret Beazley to have the legislation is enacted quickly.
This will mean first-home buyers could potentially access the scheme by Saturday.
"I say to the NSW Labor Party, get out of the way and allow first-home buyers to reach the great Australian dream," Mr Perrottet said.
"We know there could be nothing more important than home ownership, particularly for young families.''
He said talks with cross-bench MPs had been constructive and he is hopeful the bill will pass, although some cross benchers claimed the premier had not consulted with them.
Labor Leader Chris Minns remains opposed to the legislation, saying it is a "Trojan horse" created by the government to introduce a broad-based land tax on families, that will steadily increase over time.
If Labor wins government at the March election, they have vowed to repeal the legislation.
"Our concern is that future governments will jack up the land tax rate," Mr Minns said on Thursday.
"If you're already on that merry-go-round, you have to trust this premier, and all future premiers, not to up the land tax rate on your family home."
Greens MP Abigail Boyd says she wants the bill amended, so no changes can be implemented until after the election.
She said division between Liberal and Labor over the policy, and a possible change of government at the March election, could lead to the policy being scrapped at huge expense to taxpayers.
"It seems like an incredible waste of time and money, as well as creating huge uncertainty for first homebuyers, if we allow this ... bill to take effect now only to have it unwound if Labor win the next election," Ms Boyd told AAP.
The premier has insisted the reform will allow first-home buyers to make a decision to suit their own financial circumstances.
"This will enable young people particularly to get into the housing market faster, to have their wealth grow with them,'' Mr Perrottet said.
The bill passed the lower house last month, before being referred to an inquiry in the upper house.
The inquiry received 15 submissions and held one public hearing, making one recommendation for the upper house to proceed with a debate, addressing concerns identified by stakeholders.
The inquiry heard arguments in support of the bill, while others raised concerns, including how frequently the scheme would be reviewed and whether it would cause property prices to rise, committee chair, Labor MP Tara Moriarty, said on Thursday.
Others wanted more home buyers to be able to opt into the scheme.
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