I am 61 year old single female who has small amount of super…

Good Afternoon

At 61 it is free

You will not be taxed on the release of superfunds.

If it is an insurance claim that is from the insurance on your superfund then you may be taxed on the amount that is loss of wages.

But if it is your super money it will not be taxed

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Regards
Leon

Good Afternoon

It all depends on how it will be paid

If it is paid as an income then it will be assessed

If it i a lump sum they will need to see what it is characterised as and they will then aportion what is income and what is capital and then decide what they do with your payments.

Here is some information

https://www.humanservices.gov.au/organisations/business/services/centrelink/centrelink-compensation-information-lawyers-and-insurers

It is not a simple thing to answer as I do not know what it is made up of and centrelink will also ask

It is a PDS settlement

So I am not sure what you have claimed and what they are paying.

Super is usually paid either as a lump sum which means it is an asset or as a pension which is income.

In your case it is a lump sum payment for an injury or compensation I do not know what you are claiming and if it is from the insurance or your actual super

You need to speak to them and ask how is is being characterised and what do you have to declare to centrelink

I cannot see what they are paying you.

It will not be income and the pension will not be affected by this.

What doesn't count in the income test

Lump sums may be exempt from the income test if they’re:

• unlikely to happen again
• hard to predict
• not for a service
• not profits.

They include:

• a one off gift
• a one off amount of superannuation
• an inheritance
• a payout for damages to property or personal effects
• flood, bushfire and drought assistance
• some redress payments, such as for negligence
• one off payments for a prize, reward or lottery win
• a gambling win unless this happens often or you gamble for a living
• compensation from an Australian trust.

​https://professional-secure.justanswer.com/chat/index/8030856f7bf1461ebacc2a89771c5989

Once in an account it will be an asset

if you are under the assets test then your payments will not be affected

$12,000.00 is not a large amount of money and you can have assets to $258,000.00 plus your home if you are single and you get the full pension

Here is the link about the asset thressholds before the pension is decreased

https://www.superguide.com.au/accessing-superannuation/age-pension-asset-test-thresholds

It is not an issue if you meet these criteria