If she sets up a super account and contributes the full $230,000 as non-concessional contributions and then switches it to pension mode, then the interest on the money will be tax free. Currently with a base income of $39,000 from the UN pension - as a very very broad estimate she will be paying 16% on the first $6,000 of the interest income and 30% on the rest.
An added benefit of having it in super is that for aged pension purposes (I assume she is able to qualify for a small amount of aged pension based on those income and asset levels?) the income assessed by Centrelink for aged pension purposes is lower when its in a super fund than the actual income it generates, so she will likely get a little bit more aged pension each fortnight. If the money is outside super, the actual amount earned is included as income for aged pension purposes (so $210 per week). But if the money is in a super account, they use the deeming rules which mean that the first $64,200 has the deemed rate of 0.75% applied and everything over that is deemed to earn 2.75% interest. So on the basis that the $230,000 is her only financial asset, then the deemed income would be $97 a week. So that could be an extra $55 in aged pension each week - not huge but not insignificant either.
But I would suggest you speak to a financial advisor on this. If that's too expensive, then you could setup a super fund and ask them if you can speak to their financial advisor as most super funds offer a free appointment with a financial advisor for this purpose.
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