Australia’s most populous state will launch a gun buyback scheme later this year, becoming the first to offer cash in exchange for firearms in the wake of the Bondi Beach terror attack.

Gun owners in New South Wales (NSW) will be offered up to AUS$1,000 (£523) to hand over eligible handguns, shotguns and rifles from 2 November.

Australian authorities had pledged sweeping firearm law reforms after 15 people were shot dead at a Jewish festival on Sydney’s Bondi Beach, which is located in NSW, last December.

The state’s premier Chris Minns said on Saturday: “We want those guns handed in, compensated for and safely destroyed.”

He said the move could see hundreds of thousands of guns surrendered.

Gun ownership reforms already introduced by the state mean individuals can only own four firearms – although some people, such as farmers and sports shooters, can own a maximum of 10.

The scheme will be offered to those who have more weapons than permitted by the new rules, or who are no longer covered by a licence – with terms having been reduced from five years to two.

The scheme will be implemented in two phases. The first – from the start of November – covers types of handguns, shotguns and rifles.

Those handing over a revolver, for example, will be paid AUS$1,000, while an air rifle will fetch AUS$450.

The second phase will begin early next year and cover “higher-value firearms” valued above AUS$3,000, capped at AUS$10,000.

The National Gun BuyBack Scheme is being jointly funded by New South Wales and the federal government.

Businesses will be able to receive up to AUS$25,000 in support to help them adjust to the reforms, with help also offered to gun-dealers.

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

“That includes meaningful nationwide gun reform.”

On 14 December last year, 15 people including a 10-year-old girl and a Holocaust survivor were killed as Hanukkah celebrations took place near Australia’s most famous beach.

Australian authorities had initially planned a nationwide gun buyback, though plans have been delayed over funding and how it would be implemented.