New South Wales will become the first state to launch the Albanese government’s gun buyback scheme in response to December’s Bondi terror attack.

The NSW and Commonwealth governments struck an agreement and will evenly share the cost of the scheme.

Most other states have rejected or are uncommitted to the reforms. 

The buyback is the largest such scheme since the Port Arthur massacre in 1996 when 35 people were killed.

Under the new reform, a revolver handgun and centrefire rifle could receive about $1000 each, while a double-barrel shotgun could get $850.

The ABC reports that as many as 274,000 firearms — about a quarter of those registered in NSW — and 50,000 licence holders could be impacted.

“We want those guns handed in, compensated for and safely destroyed,” NSW Premier Chris Minns said in a statement.

“This is a big undertaking, but the principle behind it is simple: fewer dangerous guns in our community means a safer New South Wales.”

NSW tightened its gun laws in the days after the deadly Bondi shooting with limits on gun ownership, reclassifying some weapons, boosting background checks and reducing firearms licences from five years to two.

However the buyback is considered the next step in the reforms.

Compensation will be paid from November 2 for firearms beyond the new ownership limits and for newly reclassified firearms, along with a flat fee for associated ammunition.

The scheme will also provide financial assistance for businesses and industry to adjust to the reforms.

“We must do everything we can to make sure the antisemitic terrorist attack in Bondi doesn’t happen again,” Prime Minister Anthony Albanese said on Sunday.

“That includes meaningful nationwide gun reform.”

The Commonwealth will contribute 50 per cent for administration costs and fully fund the destruction of surrendered weapons.

A fixed price schedule will apply for individual licence holders beyond the new legal limit to return their firearms in exchange for compensation.

Eligible businesses and dealers will be offered up to $25,000 in grants and one-off licence fee relief worth $500 over two years per dealer.

Early 2027 will see a pathway to compensation, for a fee, for eligible higher-value firearms with an indicative market value above $3000 and capped at $10,000 per firearm.

It’s estimated up to 274,000 registered firearms or about 24 per cent of the total number of registered guns in NSW — and some 50,000 licence holders are affected by the new limits on ownership.

“After Bondi, we promised … we would introduce the toughest gun laws in the country and that’s exactly what we did,” Mr Minns said.

“The next step is getting the guns that are no longer permitted under those laws out of circulation and permanently off our streets.”

This scheme is informed by the recommendations of the antisemitism royal commission.

-with AAP