NSW is the only mainland state that funds emergency services by taxing property insurance customers, a levy that has been blamed for ballooning premiums and putting cover out of reach for many.
But a NSW Treasury paper has put forward a series of proposals for a broad land tax to replace the controversial measure.
The change would mean a fairer, more sustainable and more transparent system that would make insurance more affordable, the government said.
"We have an old system that's out of date, that punishes working families," NSW Treasurer Daniel Mookhey told reporters on Sunday.
"People with mortgages have no choice but to pay, people with cars have no choice but to pay, but some of our biggest corporate landholders can buy their way out of making any contribution whatsoever (to emergency services) by self-insuring.
"We do need to confront cost-of-living pressures wherever we encounter them."
Mr Mookhey acknowledged any changes would need cross-party support to proceed and the state opposition has yet to offer its blessing, although the coalition previously tried and failed to overhaul the levy while in government.
The government is yet to announce the details of any planned overhaul of the levy.
At the 2023 state election, Labor committed to repealing an annual land tax introduced by the former Liberal-led government to replace stamp duty for first home buyers who opted in.
Labor branded the measure a "forever tax" on homes and abolished it after taking office.
But the Treasury paper contains five different proposals for tiered land taxes based on the value of residential, commercial, industrial, public and farm properties.
Every option requires all property owners to make a minimum contribution, although the paper acknowledges those with lower land values will generally have less capacity to do so.
Those in the lowest residential bracket, with a land value of up to $302,100, could pay an annual levy between $158 and $189, while property owners in the highest residential bracket, with land values of more than $1.41 million, would face an annual levy of $509 to $573.
"Putting aside (Premier) Minns and Mookhey's vow not to place a forever tax on the family home, we have always been concerned that those currently paying for insurance will be worse off under any new system," NSW shadow treasurer Scott Farlow said in a statement.
The former Berejiklian government tried to replace the levy with a fee based on land values in 2017.
But it was forced into an embarrassing backflip following concerns some ratepayers could be left out of pocket.
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