Better Super is the Government's biggest reform to Australian superannuation ever.

Here is a summary of the reforms that started on 1 July 2007:

Tax-free super payouts from age 60.

• From 1 July 2007, everyone who has paid tax on their super (that's most workers) can look forward to paying absolutely no tax on their super payout after they turn 60.
• Whether you take it as a lump sum or as a superannuation pension, you'll pay no tax on your payout, as long as you take it after 60. You won't even have to declare it on your tax return.

Lower tax on payouts from untaxed super from age 60.

• If you have untaxed contributions (mainly public servants) you will still be taxed on your payouts. This is because you haven't paid any tax on these contributions.
• However, the rate of tax will be reduced once you're aged 60 or over.

More flexibility and choice in how you take your super payout.

• Until now, there have been strict rules about how and when you took your payout. For example, once you reached 65 and were no longer working, you had to take out all your super - whether you wanted to or not.
• From 1 July 2007, things will be much more flexible. To take the same example of someone retired over 65: you can take some of your super out - as a lump sum or as a pension - and leave some in to continue making money. Or you can work part-time and keep adding to it.

A better pension deal for people with assets.

• Under the current rules, people with quite modest assets lose access to all or part of government pension payments.
• From 20 September 2007, the rate at which your Age Pension is reduced because of the value of your assets will be halved.
• This means that many people will receive more money. Some of them because they will become eligible for a pension for the first time, while some current part-pensioners will have their payments increased.

A better deal for the self-employed.

• From 1 July 2007, if you are self-employed you will be able to claim a full tax deduction for your super contributions.
• You may also be eligible for the Government Super Co-contribution scheme if you make after-tax contributions.

Easier to find and transfer super from different jobs.

• If you have a number of super accounts from different jobs, it's probably a good idea to join them all together in the one fund.
• But the process has now been simplified so that all you have to do is fill in one form and send it to the super fund of your choice.
• It will be easier to use the Government service that helps you find super you may have lost track of.