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AAP
AAP
Politics
Jack Gramenz

NSW land tax bound for parliament inquiry

Dominic Perrottet's plan to reduce upfront costs for NSW homebuyers has hit a hurdle in parliament. (Dan Himbrechts/AAP PHOTOS) (AAP)

Dominic Perrottet's dream of stamp duty reform in NSW has hit a speed bump, as he seeks to legislate the change before the election.

The premier wants to give first homebuyers the option of choosing to pay an ongoing land tax rather than one-off stamp duty, while the property would not be locked into the scheme.

Labor is calling it 'a forever tax' on the family home, warning it won't end with a choice for first home buyers and wants he policy to be taken to the March election, rather than introduced in January as planned.

Debate was adjourned in parliament's lower house on Tuesday, while the upper house has already decided the bill will go to a committee for inquiry once it passes in the Legislative Assembly.

Shadow Treasurer Daniel Mookhey says Labor is "relaxed" about an inquiry, even one lasting only a day.

"It's remarkable that a government that has maintained, and a premier who has maintained, this (change) is in the public interest seems to fear a public inquiry," Mr Mookhey said.

Greens MP Abigail Boyd said her party was yet to make its mind up on the bill and the government needed to "chill out".

"We are asking for an inquiry so we can hear from experts, so that we can apply our minds to it after the sitting week is done, and have an actual look at it, and perhaps at the end of that we would vote on that," Ms Boyd told parliament on Tuesday.

The government was being arrogant trying to push the legislation through quickly, she said.

One Nation MP Mark Latham also voted in favour of an inquiry, "for the common sense reason that the government's position makes no sense".

"They're basically saying, having delayed this proposed reform for three years, they can't put up with another three weeks," Mr Latham said.

"The bill can be improved in some important respects," he said.

Deputy leader of the government in the upper house Sarah Mitchell said the house should be debating and voting on the bill once it makes it out of the Legislative Assembly, rather than having an inquiry.

Independent MP Justin Field voted for the inquiry but said it should be short enough to allow a vote on the bill before the end of the year.

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