Nad,  you never mentioned what payments you are on -- is it the OAP or some other?

They may want you to spend it on a house deposit but it isn't their money, it is yours, you are a grown woman and I would think it is up to you to spend it the way you want.

If you are worried about being penalised by a government Agency, why not arrange an appointment and ask them about it face to face?  It seems to me that if you only have $700.00 in the bank, and you have had a windfall of $30,000.00, it would not interfere with a government payment if you used some or all of it.  You're not sitting on a couple of million in assets are you?  

Beware of advice from armcahir experts though, myself included, go to the people who actually know for advice.

Yes. I have rang centrelink honest to God 8-9 times and everyone gave me an “i dont really know, this is complex”

I even got ahold of my local MP for some clarity. Even she had a hard time getting a straight answer but she just reccomended I ring centrelink and do whatever that person suggests and save the call information for any troubles in the future. 

This guy on the phone now with centrelink is saying i can use it as my own money. Idk who to believe haha 

Ordinary people are confused and disempowered by the complexity of government regulations and by bureaucratic-legal speak.  Here is the relevant example [click for link]

I am not familiar with Centrelink.  However, from a search of the Centrelink site, I found that the Financial Information Service is provided to help (contact details below).  If it was me I would make a list of my questions and don't be afraid of any silly ones, all matter and ring and make an appointment.  They cannot give advice but you can ask the powerful what questions: What happens if I do X,  What happens if I do Y etc.  The FIS officers do not keep any notes from your conversation.  That is their rule.

If you can have a friend go with you all the better and that is OK.  We miss a lot of what is said to us (same as with doctors) and having someone there taking notes and reminding us is great.

If you don't get what you want or if over a cup of tea or a night of sleep you think of more questions, write down what worries you and go back again.

Here is the contact [click for link]

If you are a War Widow or qualify in any way for veterans benefits get in touch with DVA for a chat, which they are pleased to do.

Okay. Finally got off the phone. So the money is treated as an asset and I CAN buy a car, computer or any other goods that retain a value. 

I can use up to 10k a financial year towards gifting, medical expenses or anything I do not gain something of value. Thats considered disposal of assets. Makes so much sense now haha

3 hours working with Luca from Centrelink. What a lovely young man. He read through legislation and gave me the exact sections tonwrote down in case of any trouble. 

Thanks Old Man, I believe he has turned a simple enquiry into a Manifesto and still given incorrect information after spending 3 hours with NAD on the phone. That was my point. This enquiry was not complex, it was simple.

The reason it took so long was because he was looking up legislation since we were looking for specifics. I had talked to so many ithers that couldnt give me a definitive answer. I dont want to do the wrong thing or get penalised for mishandling my money. Im sorry I took advantage of this social service. This young man was eager to find the answers as well. He really deserves some praise.

If a Centrelink staff member can't answer that question within say 20 minutes, then they shouldn't be answering those type of calls. He has led you down the garden path by discussing "Disposal of Assets" which it is not. Luckily for you and the rest of Australia that the amount is not large enough to impact a payment, but it could have been and then you would'nt be praising him so highly. You called the service in good faith, maybe if you had given this forum some more information at the start, we could have saved you the trouble and time.

Was no trouble at all ;) 

Anytime Reagan, happy to help. You’re missing the point though. The horses mouth in this case was wrong. 

Treat the funds as if you already had them in your account.  If you need an operation, then have it.  The $10,000 pa is for gifting only, not for anything else.  If you 'need' another car, then purchase one.

My only advice (which I have also done), is that when you receive it, tell Centrelink, as it will then become an asset, then when you spend it, also advise Centrelink. Centrelink will 'deem' that if you have the funds in a bank account, you'll receive a certain amount of interest, and will assess this interest as income, and the funds as an asset.

There's a generous amount of assets you can have, whether you're a home owner, or not, and unless you're on the threshhold, the $30,000 won't, or shouldn't affect your pension.

Oh deary me Reagan, tsk tsk. I'm with McDaddy and his comments on this one.