Increased tax breaks set to benefit about 13,000 NSW first-home buyers have crossed the first hurdle amid attempts to retain recent reforms.
The first-home buyer assistance scheme, ensuring stamp duty exemptions cover about five in six new entrants to the housing market, passed the NSW Legislative Assembly late on Tuesday.
Meanwhile, the Nationals opposed a move to put Sydney Water and Hunter Water in the NSW constitution, after the party's coalition partner Liberals supported Labor's bill in another late-night vote.
Both bills will go to the upper house this week for further debate where the government will have to rely on the support of the crossbench to get them over the line.
The first home buyer changes would lift the thresholds for stamp duty exemptions from $650,000 to $800,000 and stamp duty concessions from $800,000 to $1 million.
Treasury estimates the changes would grant about 8600 first-home buyers an exemption and another 4400 will pay a lower rate.
Stamp duty adds about 4.5 per cent to the price of homes in NSW and must be paid upfront.
The bill passed the lower house after Labor, the Greens and a host of independents united in squashing a bid to retain the coalition's stamp duty reforms alongside the new tax breaks.
The reforms, passed in November, allow first-home buyers to opt out of stamp duty and into a land tax scheme if their property is between $800,000 and $1.5 million.
The amendment also sought to index the new tax breaks to keep up with inflation.
But the coalition could only garner crossbench support from Kiama MP Gareth Ward and Wakehurst's Michael Regan, losing the vote 35-51.
It came after the coalition split on a bill to place two water utilities in the constitution.
The Liberals and Nationals had wanted all water utilities in the state added to the constitution but could only draw support from Mr Ward.
The original bill, which prevents future governments from privatising Sydney Water and Hunter Water without parliament's approval, then passed with Liberal support.
The next battle will be over Labor's bid to simplify and improve an infrastructure tax levied on developers.
The bill is due to be put to a vote in the lower house on Wednesday without the opposition's support.
"The government claims that funds raised by this measure will support infrastructure in the region, but with all of Greater Sydney being treated as one region, charges raised from a development in Penrith could be used to support infrastructure spending in Petersham," housing spokesman Scott Farlow said on Wednesday.
