diff --git a/src/services/tx/__tests__/safeUpdateParams.test.ts b/src/services/tx/__tests__/safeUpdateParams.test.ts
index 1adc17e7a3..d3e74623e2 100644
--- a/src/services/tx/__tests__/safeUpdateParams.test.ts
+++ b/src/services/tx/__tests__/safeUpdateParams.test.ts
@@ -30,7 +30,7 @@ describe('safeUpgradeParams', () => {
 
   jest.spyOn(sdkHelpers, 'getSafeProvider').mockImplementation(() => getMockSafeProviderForChain(1))
 
-  it('Should add empty setFallbackHandler transaction data for older Safes', async () => {
+  it('Should add setFallbackHandler transaction data for 1.0.0 Safes', async () => {
     const mockSafe = {
       address: {
         value: MOCK_SAFE_ADDRESS,
@@ -58,7 +58,12 @@ describe('safeUpgradeParams', () => {
     // Check setFallbackHandler
     expect(sameAddress(fallbackHandlerTx.to, MOCK_SAFE_ADDRESS)).toBeTruthy()
     expect(fallbackHandlerTx.value).toEqual('0')
-    expect(fallbackHandlerTx.data).toEqual('0x')
+    expect(
+      sameAddress(
+        decodeSetFallbackHandlerAddress(fallbackHandlerTx.data),
+        getFallbackHandlerDeployment({ version: getLatestSafeVersion(mockChainInfo), network: '1' })?.defaultAddress,
+      ),
+    ).toBeTruthy()
   })
 
   it('Should upgrade L1 safe to L1 1.4.1', async () => {
diff --git a/src/services/tx/safeUpdateParams.ts b/src/services/tx/safeUpdateParams.ts
index 3d9fff40b9..9b0fc5f320 100644
--- a/src/services/tx/safeUpdateParams.ts
+++ b/src/services/tx/safeUpdateParams.ts
@@ -9,11 +9,10 @@ import { hasSafeFeature } from '@/utils/safe-versions'
 import { getLatestSafeVersion } from '@/utils/chains'
 
 const getChangeFallbackHandlerCallData = async (
-  safe: SafeInfo,
   safeContractInstance: SafeContractImplementationType,
   chain: ChainInfo,
 ): Promise<string> => {
-  if (!hasSafeFeature(SAFE_FEATURES.SAFE_FALLBACK_HANDLER, safe.version)) {
+  if (!hasSafeFeature(SAFE_FEATURES.SAFE_FALLBACK_HANDLER, getLatestSafeVersion(chain))) {
     return '0x'
   }
 
@@ -36,11 +35,13 @@ export const createUpdateSafeTxs = async (safe: SafeInfo, chain: ChainInfo): Pro
   const latestMasterCopyAddress = await (
     await getReadOnlyGnosisSafeContract(chain, getLatestSafeVersion(chain))
   ).getAddress()
-  const readOnlySafeContract = await getReadOnlyGnosisSafeContract(chain, safe.version)
+  const currentReadOnlySafeContract = await getReadOnlyGnosisSafeContract(chain, safe.version)
+
+  const updatedReadOnlySafeContract = await getReadOnlyGnosisSafeContract(chain, getLatestSafeVersion(chain))
 
   // @ts-expect-error this was removed in 1.3.0 but we need to support it for older safe versions
-  const changeMasterCopyCallData = readOnlySafeContract.encode('changeMasterCopy', [latestMasterCopyAddress])
-  const changeFallbackHandlerCallData = await getChangeFallbackHandlerCallData(safe, readOnlySafeContract, chain)
+  const changeMasterCopyCallData = currentReadOnlySafeContract.encode('changeMasterCopy', [latestMasterCopyAddress])
+  const changeFallbackHandlerCallData = await getChangeFallbackHandlerCallData(updatedReadOnlySafeContract, chain)
 
   const txs: MetaTransactionData[] = [
     {