The NSW government has announced it will swap stamp duty for land tax in this week’s budget, but what does this mean for homeowners?

Only first home buyers are eligible for the scheme. Buyers who accept the offer will be taxed annually on the value of their land instead of hit with an upfront fee when they buy.

If homeowners accept the offer, the property will be out of the stamp duty system and subject to land tax only for future owners.

The state government hopes it’s a chance for first home owners to get into the property market, as it estimates it adds almost two years on average to pay the stamp duty on top of the property purchase price.

First home buyers who choose to pay a property tax will pay $400 a year, plus 0.3 per cent of the land value of the property. The program is only for homes worth up to $1.5 million.

Opponents say it locks people into paying tax forever and could be increased at any time.

What would you choose? Stamp duty or land tax?