What is the difference between TPD and income protection?

TPD (Total and Permanent Disability) pays a single lump sum when an illness or injury permanently prevents you from working. Income protection pays an ongoing monthly benefit (typically 75% of your pre-disability income) while you're off work, usually for a fixed benefit period. Many Australians hold both inside the same super fund. You can claim on both for the same condition if your circumstances qualify.

How much does a TPD claim pay out in Australia?

Lump-sum payouts typically range from $50,000 to $500,000 per super fund, with some payouts exceeding $1.5 million. The amount is set by your insurance cover at the time you stopped work, not when you claim. Because many Australians have multiple super accounts with separate TPD cover, claimants can sometimes lodge claims against more than one fund for the same condition.

Do I need a lawyer to claim TPD?

You can lodge a TPD claim directly through your super fund without a lawyer. However, statistics published by lawyer associations and AFCA suggest that claims with legal representation have higher approval rates and shorter timelines. A specialist TPD lawyer typically works on a no-win-no-fee basis and can help with policy interpretation, medical evidence, and disputes if the insurer initially rejects your claim.

Can I claim TPD if I am still working part-time?

It depends on your policy definition. "Any Occupation" TPD definitions (the standard for most super-linked cover) require you to be unable to work in any job for which you are reasonably suited by education, training or experience. Limited part-time or modified-duty work that you cannot reasonably sustain may still leave you eligible. "Own Occupation" definitions are easier to satisfy but are less common in super. A specialist can review your specific PDS.

Will my TPD payout affect my Centrelink payments?

Yes — TPD lump sums are usually treated as an asset for the Centrelink assets test, and the deemed earnings on the lump sum count toward the income test. Receiving a TPD payout can reduce or cancel Disability Support Pension, JobSeeker, and other payments. Tax treatment is concessional but not zero. Speak to a financial counsellor before you receive the payment, not after — Centrelink and ATO timing matters.

Is there a time limit to claim TPD?

TPD policies don't have a single statute-of-limitations clock the way court claims do, but the longer you wait, the harder evidence becomes to gather. Most insurers expect a claim while you're still a member of the fund, and many policies require you to have been insured at the time you stopped work. If you're unsure, lodge the claim now — you can always withdraw it. The main risk is leaving the fund (e.g. consolidating super) before claiming, which can extinguish the cover entirely.

TPD Claims Australia: Eligibility, Payouts, and What to Do Next

What is a TPD claim?

Total and Permanent Disability (TPD) insurance pays a one-off lump sum when an illness or injury permanently prevents you from returning to work. Unlike workers compensation, TPD is not tied to whether the injury happened at work — it covers any cause: workplace accidents, motor vehicle accidents, mental illness, cancer, stroke, chronic pain, or any other condition that meets the policy definition.

Most Australian working-age adults hold TPD cover automatically through their superannuation fund's default insurance. You may not realise you're covered. Many fund members have held TPD insurance for years without ever reading the Product Disclosure Statement (PDS).

TPD is governed by your insurance policy (the contract between the super fund's trustee and the insurer) and Australian regulators. Disputes ultimately go to the Australian Financial Complaints Authority (AFCA) rather than the courts. The Moneysmart guide to TPD insurance is a useful general primer.

Who qualifies for a TPD claim

Eligibility depends on three factors, in this order:

You held TPD insurance when the illness or injury caused you to stop work. Cover usually attaches to your super fund, so check current and former funds.
You meet the policy's TPD definition, which sets the standard for how disabled you must be (see below).
You can produce supporting medical evidence, typically from your treating GP, specialists, and (for mental health claims) a treating psychiatrist or psychologist.

"Any Occupation" vs "Own Occupation"

Most super-linked TPD policies use an Any Occupation definition: you must be unable to ever work again in any job for which you are reasonably suited by education, training or experience. This is a higher bar than Own Occupation (unable to do your usual job), which is more common in retail (non-super) policies. The wording in your PDS controls — a specialist can interpret your specific definition.

The "two-year" or activities-of-daily-living rule

Most modern TPD policies require you to have been off work for a continuous period (commonly 3 or 6 months, sometimes longer for mental health) before the insurer will assess permanence. Some policies use an "Activities of Daily Living" test that focuses on whether you can independently bathe, dress, feed, transfer between bed and chair, and toilet. The applicable test depends on your policy and how you stopped work.

Read the full eligibility test The 4-question check most claimants can answer in under a minute →

How much can you claim

Your TPD lump sum is fixed by the cover amount inside your super fund's policy at the time you stopped work. It does not increase with the severity of your condition — TPD is binary in that sense. You either meet the definition (full payout) or you don't (no payout).

Cover amounts vary widely:

Member type	Typical TPD cover (indicative)
Default cover, retail super, age 30–50	$80,000–$300,000
Default cover, industry super, age 30–50	$150,000–$500,000
Member with voluntary top-up cover	$500,000–$2,000,000
FIFO / high-income occupations with bespoke cover	$1,000,000+

These ranges are indicative based on publicly available super fund insurance guides. Your exact cover amount is shown in your annual super statement or by logging into your super account online.

Multiple funds, multiple payouts

If you have held more than one super fund — common for anyone who has changed jobs or industries — you may be eligible to claim against each fund's TPD policy for the same condition. This is one of the most under-claimed entitlements in Australia. See our guide to claiming multiple TPD policies.

See real TPD settlement examples Settlement bands by condition, occupation, and fund →

The TPD claim process

At a high level, every TPD claim follows the same six steps, regardless of which super fund or insurer is involved:

Notify your super fund that you intend to claim. They will send claim forms and request your authority to obtain medical records.
Complete the claim forms. These are detailed — typical packs are 25 to 60 pages and include a member statement, employer statement, treating doctor statement, and Statutory Declaration.
Provide medical evidence. Your treating GP and specialists complete medical attendant reports. The insurer may request additional reports from independent medical examiners.
The insurer assesses the claim against the TPD definition in your policy. This is the longest step — typically 3 to 6 months once full evidence is in.
The trustee makes the final decision. Under the Superannuation Industry (Supervision) Act 1993, the super fund trustee must independently consider the insurer's recommendation and act in your best interests as a member.
Payout, or dispute. If approved, the trustee releases the lump sum (subject to a release condition under super law). If declined, you can dispute internally and then escalate to AFCA.

How long does a TPD claim take

Most claims that don't go to dispute resolve in 6 to 12 months from the date of full lodgement. The single biggest determinant of timeline is medical evidence — claims with clear, consistent specialist reports decide faster than claims that rely on contested or conflicting medical opinions.

Where claims drag past 12 months, the most common causes are:

Insurer requesting additional independent medical examinations (IMEs)
Surveillance reports or social media checks where the insurer contests the severity of your condition
Disputes over the date you stopped work (which determines which policy applies)
Pre-existing condition exclusions in the policy

Read our deeper guide to TPD claim timelines and what speeds them up.

What if your TPD claim is rejected

Initial rejection rates vary by insurer and policy. APRA disability claims data published annually shows initial decline rates between 15% and 35% across major insurers. Many declined claims are overturned on review or at AFCA, particularly where the original decline was based on incomplete medical evidence or a strict reading of policy definitions.

Your dispute pathway is:

Internal dispute resolution (IDR) — write to your super fund's complaints team with reasons. The trustee has 45 days to respond.
External dispute resolution at AFCA — free for consumers, with binding determinations up to $1,201,000 (current limit, indexed annually). AFCA decisions take 6 to 12 months on average.
Federal Court — rarely needed; reserved for matters above the AFCA cap or that involve issues of broader law.

Our full guide to rejected TPD claims walks through the AFCA process step-by-step.

If you have multiple super funds

Around 6 in 10 Australian workers have held multiple super funds at some point. If you stopped work due to illness or injury, each fund where you held TPD cover at the relevant time is a separate potential claim. Insurers and trustees do not coordinate with each other — you have to lodge each claim individually.

Before consolidating super after an illness or injury, check whether each fund has TPD insurance attached. Rolling out of a fund typically extinguishes the insurance. Many people unknowingly cancel valuable TPD cover by consolidating without checking.

TPD claim guides for the 15 largest Australian super funds

No win, no fee explained

Most specialist TPD lawyers in Australia work on a no-win-no-fee basis: if your claim is unsuccessful, you don't pay legal fees. If it succeeds, fees are deducted from the payout. Typical fee structures are 15% to 25% of the payout, capped, with the cap depending on the firm and the complexity of the claim.

The Legal Profession Uniform Law applies in NSW, VIC and WA and requires fee disclosure up front. Other states have similar regulations. Our guide to no-win-no-fee TPD lawyers breaks down what to ask before signing any costs agreement.

Next steps

If you've stopped work because of illness or injury and you have super, the practical first step is to find out what TPD cover you actually held. CompoCheck's free 60-second form passes your details to a specialist TPD lawyer in your state who can pull your insurance details, assess your eligibility, and explain your options — at no cost to you.

We are not a law firm and do not provide legal advice. We are a free matching service that connects Australians with qualified, no-win-no-fee TPD lawyers.