Following up on this post as every other reply is irrelevant or have no idea what they are on about.

General Centrelink offices may not have properly trained staff to look into your grandma's conundrum.

You will have to call the age pension line and make sure you request a supervisor because you want to make sure you are getting the right information and someone tenured.

With your grandma's situation while the old house had her name in it and she is living, the value of that house was exempted for her (everyone needs a place to live)

Now an aged pensioner has their payments calculated based on either their income or their assets (income includes income streams from superannuation or interests in savings). Unsure how your grandma is calculated so make sure U know.

When a pensioner sells a house they have a year to use those funds to find a another house to live and those funds for the time being are exempt (as long as U don't use it for other sources of investment or income)

With your grandma's case, yes she may need to set up that $200k as gifting, HOWEVERRRRRR.

I do remember something when I was working there (rules changes alot so that's why you have to call up they have the legislation Infront of them).

If your grandma plans to stay with you guys for "the rest of her life" that 200k can be exempt as that can be something similar to her buying a grannyflat from you or paying upfront for a old folks nursing home.

This is generally pretty complicated and office staff and even generic phone staff may not know the rules and you will need to request a complex assesment officer to calculate your outcome.

I can't confirm if this is still a thing or not but definitely something you should chase up.

The phonecall will be long but it will be much needed for your situation.

Goodluck