How to navigate the downsizer contribution rules for super

Q: Regarding your recent column on making non-concessional super contributions when you have reached the $1.9 million transfer balance cap (TBC), I thought the $300,000 downsizer contribution from the sale of a family home was exempt from the TBC. Is this true? I’m asking because I have another question about downsizer contributions. I also understand downsizer contributions can be from any property that you have ever lived in – that is, it doesn’t need to be your current residence. In our case, it would be an apartment that we once lived in but now rent out, and will subsequently sell. Can you clarify this? Paul.

A: Bryce Figot, a special counsel with DBA Lawyers in Melbourne, says although a person who has a total super balance (TSB) of $1.9 million or more typically cannot make non-concessional contributions, downsizer contributions are indeed the exception to the rule. Of course, this is subject to them satisfying all the other criteria associated with downsizer contributions.