Relief for first home buyers in NSW will come at the expense of local and foreign investors under a plan the state government is spruiking as a "huge win".
Under the changes, which will come into effect from July, stamp duty will not be paid by first homebuyers of new or existing properties worth up to $650,000.
Stamp duty on lenders' mortgage insurance will also be abolished altogether.
Foreign investors will have their stamp duty surcharge doubled from four to eight per cent and the land tax surcharge hiked from 0.75 per cent to two per cent.
"This is a huge win for people aspiring to own their first home in NSW," Premier Gladys Berejiklian said on Thursday.
Opposition leader Luke Foley claimed the government missed an opportunity to significantly address Sydney's housing affordability crisis and dismissed the changes as a "tight-fisted grab bag of initiatives".
Mr Foley said the government has failed to address reform of negative gearing and capital gains tax concessions.
