In the May 2006 Budget the government presented a series of superannuation reforms designed to improve retirement incomes and increase incentives to work and save. 
 
The key initiatives are: 

• People aged 60 and over who have already paid tax on their superannuation contributions and earnings would not pay tax on their superannuation benefits from 1 July 2007 
  
• Reasonable Benefit Limits (RBLs) would be abolished 
  
• Streamlined rules for contributions would be introduced to give individuals greater flexibility as to how and when they draw on their superannuation in retirement 
  
• The ability to make deductible superannuation contributions would be extended to age 75 
  
• Self-employed people would be able to claim a full deduction for their superannuation contributions as well as being eligible for the government co-contribution for their personal post-tax contributions.