As the government moves to increase housing supply, people aged 65 and older will be able to make non-concessional contributions of up to $300,000 from the sale of their principal place of residence, owned for 10 years or more.

Both members of a couple can participate from July 2018, up to a combined $600,000. Contributions are exempt from the existing $1.6 million transfer balance cap on retirement contributions.

Pensioners hit by asset test changes in January will have concession cards reinstated, allowing 92,300 more people to access discounts.

Annette Barbetti, a 30-year veteran of the public service who retired in 2004, welcomed the moves as well as the gradual thawing of the freeze on Medicare rebates paid by the government and $20.7 million to help older Australians find work.

"A lot of older people will be very pleased about house sales and super," the 74-year-old said.

"I have friends rattling around in great big houses, just a widow or single person, but they are concerned it will cost them so much to downsize.

"One friend told me she would spend too much moving and could not put the money into super so this will be very helpful."

Dr Barbetti, a former Australian Bureau of Statistics officer and president of the Superannuated Commonwealth Officers' Association, said special payments to welfare recipients to help with winter power bills would also be welcomed.

Singles will receive $75, couples $125.

"Winter power bills will be big this year, and I dare say the government's plans to secure domestic gas supply will take a long time to come to fruition," she said.

The downsizing incentives, expected to cost $30 million over four years, could prove popular with sections of the Coalition's voter base disadvantaged by cuts to superannuation tax concessions in the 2016-17 budget.

Proceeds from sales added to super accounts will count towards the pension assets test.

The Coalition under Tony Abbott scrapped a similar trial scheme established by Labor in 2013.