The original proposal announced in the Budget included the removal of end benefits tax for individuals over age 60 from 1 July 2007 and the abolition of RBLs and age-based contribution limits.

In addition to these proposals, the Government has indicated transitional concessions will apply to ensure the changeover to the new system will be easier and includes the following:

• Individuals will be allowed up to $1 million of post-tax undeducted contributions between 10 May 2006 and 30 June 2007.
• The $150,000 annual limit on post-tax contributions will commence on 1 July 2007.
• Individuals under the age of 65 will be entitled to bring forward two years of contributions, enabling individuals to contribute $450,000 in one year.
• In addition to the annual $150,000 cap, individuals will be able to contribute a lifetime limit of $1 million from the sale of small business assets held for 15 years and settlements for injuries resulting from permanent disablement.