The NSW gun buyback is another major burden being placed on people who have done nothing wrong, says Member for Orange Phil Donato.

With the firearms buyback scheme announced over the weekend, Mr Donato has raised serious concerns over compensation, the treatment of licensed firearms owners and dealers, and whether the program will actually address illegal firearms and firearm-related crime.

The fixed compensation arrangements are expected to range from approximately $450 for an air rifle to $1,000 for centre-fire firearms, with handguns also included in the scheme.

“The government needs to explain how it arrived at these figures. A fixed payment of $450 or $1,000 does not necessarily reflect what these firearms are actually worth,” Mr Donato said.

“These are law-abiding people who have complied with the rules, paid their fees, stored their firearms properly and followed the law.

"They are now being told that property they lawfully purchased can be taken from them – in most cases for well below its market value.”

Mr Donato is also querying phase 2 of the program which provides for some higher-value firearms to receive compensation of up to $10,000 each from early next year.

“What exactly is a ‘higher-value’ firearm? Who decides what it is worth? What valuation methodology will be used, and what right will an owner have to challenge an assessment?” Mr Donato said.

“These are not minor details. We are talking about people's property and, potentially, thousands of dollars in value.”

The impact on firearms dealers is another major concern.

Eligible businesses are able to apply for grants of up to $25,000, which Mr Donato said was nowhere near sufficient.

“A $25,000 grant is simply not an adequate response for a business that may have hundreds of thousands of dollars legitimately invested in stock," he said.

“These dealers purchased their stock lawfully and operated their businesses within the rules set by government.

"They should not be left carrying the financial burden of a policy change they did not cause.

“This scheme could push otherwise viable small businesses to the wall, and many will not survive long enough to receive the government’s paltry offer."

The overall cost of implementing, administering and compensating people under the scheme has been estimated at close to $1 billion.

“Think about what that money could do in regional hospitals, schools, roads, public transport, or essential services," Mr Donato said.

He also says the scheme targets people who are already licensed, registered and operating within the law.

“Taking firearms away from people who have done nothing wrong does not, by itself, solve the problem of criminals possessing illegal firearms," he said.

Mr Donato said the NSW Government should provide greater transparency before the scheme gets underway.

“People deserve clear answers about how their property is going to be valued, how compensation was calculated and what avenues of appeal will be available," he said.

“Dealers deserve to know how the government intends to deal with the very real financial consequences for their businesses.

“And taxpayers rightly deserve to know why they are being asked to spend close to a billion dollars and what measurable result they can expect in return.”