The First Home Super Saver Scheme has been amended to increase the amount of superannuation savings that can be put to the purchase of a first home from A$30,000 to $50,000.

The change was included in legislation that passed both houses of Parliament last week. Another provision in the legislation is a reduction in the age for eligibility for the home downsizer contribution.

Other changes in Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Act 2021, include removing the minimum monthly income threshold for eligibility for superannuation guarantee payments and repealing the work test for superannuation contributions.

The First Home Super Saver Scheme was introduced in 2017, allowing super fund members to make voluntary contributions up to $30,000 that could be earmarked as savings for a first home purchase.

Under the new law, FHSSS contributions of up to $15,000 a year can be made, up to a total of $50,000. If the money is not used to purchase a home, it is absorbed into the member’s superannuation account.

The aim of the FHSSS is to encourage savings by providing first home buyers with access to the tax concessions in the superannuation system.

Assistant Treasurer Michael Sukkar said in a statement that 26,800 people have used the scheme to put a total of $371 million of savings towards a first home purchase.

Under the change to the downsizer contribution scheme, eligibility has been brought down from age 65 to 60. The new rule takes effect on July 1.

The amended downsizer scheme allows people over 60 to sell their home and contribute up to $300,000 of the proceeds to their super fund. If the property is jointly owned, each member of the couple can contribute up to $300,000.

Sukkar said 36,800 people have contributed $8.9 billion to super under the scheme.