Fears NSW first home buyers could miss out on federal government grants have been allayed, with state government legislation to administer the payments being passed on Wednesday.

NSW Treasurer Eric Roozendaal had warned that federal payments of up to $14,000 for first home buyers purchasing a new property and $7,000 for an existing home were at risk because the state opposition planned to vote against the enabling legislation in the lower house.

The opposition said it voted against the bill because other sections of the legislation contained a host of unpopular measures, including a duty on the transfer of businesses.

With the NSW government not holding a majority in the state upper house, it called on the opposition to support the bill, so that first home buyers wouldn’t miss out on receiving their grants.

Although the opposition voted against the bill in the Legislative Council, the government won minor party support, allowing it to pass.

Passage of the bill came on the same day that Premier Nathan Rees announced a record number of first home buyers had taken up government grants and cuts to stamp duty in May.

The grants can be worth up to $24,000 for new homes, once federal and state grants are added together.

About 7,300 first home buyers took advantage of both federal and state grants and stamp duty cuts, worth around $178 million, last month.

It was the third record month of first home buyers in a row, with more than 21,000 first home buyers taking up the offers of federal and state grants in that time, Mr Rees said.

“We’re getting more young families into their first homes than ever before and helping them get on with establishing their lives,” he said.

The biggest number of grants were handed out for properties bought in Sydney’s western suburbs, Mr Rees said.

AAP