First home saver accounts finally scrapped

First home saver accounts have been abolished more than a year after the federal government announced it would ditch the Labor initiative.

Legislation to scrap the accounts, which included a government contribution of up to $1020 per year and could only be used for first home deposits, passed the Senate on Wednesday.

The government says Australians have voted with their feet on the measure, with fewer than 50,000 existing accounts with an average balance of less than $12,000.