TPD Payouts: Real Settlement Examples by Condition and Fund

TPD payout calculator

Pick your super fund (or fund type), age band, and whether you hold voluntary top-up cover. The calculator returns the indicative single-fund range based on published default-cover figures and APRA disability data. Multiply by the number of funds with active cover when you stopped work.

Indicative only. Real cover varies by occupational class, salary multiples, premium history, and any voluntary applications. The only document that proves your cover is your insurance certificate, which we can request from each fund on your behalf.

How TPD payouts are calculated

TPD lump sums are fixed by the cover amount on your policy at the time you stopped work. They are not calculated based on the severity of your condition, your loss of income, or your future care needs. TPD is a binary insurance product: you either meet the policy definition (full cover paid) or you don't (nothing paid).

Cover amounts vary based on:

• Default cover level set by your super fund — usually scaled by age and salary
• Voluntary top-up cover you applied for and pay premiums for
• Occupational loadings — some funds offer higher default cover for high-risk roles (FIFO, mining, construction, emergency services)
• Number of funds — separate cover applies under each fund you held

Indicative settlement bands by condition

These ranges combine publicly disclosed APRA disability data, AFCA determinations, and law firm published case studies. They reflect what people typically receive, not a maximum.

Members with cover from multiple super funds typically multiply these ranges by the number of valid claims (commonly 2 to 4 funds).

Indicative bands by major super fund

These figures show the typical default cover at age 40 — actual cover depends on age, salary, occupational tier, and any voluntary additions. Always check your latest member statement for your exact cover.

Real published TPD settlement examples

Real cases settled by Australian plaintiff law firms, with client names removed by the firm at publication. Linking each example to the firm's case-results page so readers can verify and read the full facts. These are illustrative — every claim turns on its specific policy and medical facts.

• Factory worker, spinal injury — $240,000 lump sum. Claim was initially denied by the super fund insurer; reversed after legal action. Reported in Gordon Legal's TPD case studies.
• Former nurse, severe depression and PTSD — $180,000. Initially rejected by the insurer on medical-evidence grounds. Reversed after specialist forensic evidence was obtained. Reported in Gordon Legal's TPD case studies.
• Carpenter, severe lumbar spine injury — six-figure recovery. TPD claim initially rejected by Macquarie Life (now Zurich); recovered after legal action. Reported in Slater & Gordon's media release on the Justin Colosimo claim.
• Tyre inspection worker, ear injuries, hearing loss and PTSD from a tyre explosion — $630,000. Workers compensation and TPD components combined. Reported in LHD Lawyers' workers compensation case studies.
• 40-year-old underground miner, brain tumour — trauma cover paid in full. Reported in Stacks Goudkamp's TPD success stories (settlement amount not disclosed).
• 62-year-old self-employed builder, post-surgical complication — TPD ("any occupation") paid. Reported in Stacks Goudkamp's TPD success stories.
• 51-year-old bus driver, motor vehicle accident injuries — TPD ("any occupation") paid. Reported in Stacks Goudkamp's TPD success stories.

What the regulators publish on TPD outcomes

Industry-wide statistics from the Australian Prudential Regulation Authority (APRA) and ASIC's joint Life Insurance Claims and Disputes Statistics show:

• 83.8% TPD acceptance rate in the latest APRA dataset (2024 release). Group super has the highest acceptance at 90%; individual non-advised cover the lowest at 69% — see the APRA Life Insurance Claims and Disputes Statistics page for the full datasets.
• 22% of TPD claims complete within 2 weeks; 50% within 2 months. Average decision time across all TPD claims is 3.8 months. Outliers run beyond 12 months — typically claims with disputed medical evidence or pre-existing condition arguments.
• TPD and disability income insurance together account for 88% of life insurance disputes at the Australian Financial Complaints Authority (2024-25). AFCA closed 2,441 life insurance complaints in 2024-25, a 73% YoY increase — see the AFCA Annual Review.

What multiplies your payout

• Holding voluntary top-up cover — many members hold $1m+ and forget
• Multiple super funds — claim each one separately
• Occupational tier loadings — some funds default tradies and FIFO workers to 1.5x or 2x cover
• Income protection in addition to TPD — separate ongoing payment, claimed on the same condition
• Catastrophic conditions / accidental injury riders — some policies pay 2x for accidental causes

Why payouts get reduced or denied

TPD claims are insurance claims, not court damages. The insurer pays the cover amount in full when the policy definition is met — there is no negotiation around quantum. Payouts get reduced or denied for very specific reasons:

• Wrong policy definition. "Any occupation" definitions are stricter than "own occupation" — the insurer will argue you can do some work, even if not your previous role. Most super-default cover is "any occupation"; voluntary top-up is sometimes "own occupation".
• Insufficient medical evidence. The insurer requires formal specialist reports, not just GP letters. Claims with only treating-doctor evidence are routinely declined and reversed once a forensic specialist provides an opinion.
• Pre-existing condition exclusions. If you applied for top-up cover and the insurer added an exclusion for a pre-existing condition, claims under that condition are excluded entirely.
• Late notification. Most policies require notification within a "reasonable time" of stopping work. If you waited 5+ years to lodge, the insurer may argue prejudice and reduce the cover amount to what was active when you actually stopped, not when you lodged.
• Non-disclosure on application. If you held voluntary cover and the insurer finds an undisclosed condition or treatment from before the application, they can void cover or refuse the specific claim.
• Pro-rata cover. Members who joined a fund mid-year sometimes have pro-rata cover for the first 12 months; claims in that period pay a fraction of the headline cover amount.
• Cover amount changed. If your cover was reduced (often automatically, when premiums weren't deducted from a low super balance), the claim pays the reduced amount that was active on the date you stopped work, not the original headline figure.

Finding old super fund TPD cover

Most Australians have held 4 to 6 super funds across their working life. Many TPD claimants only realise they had cover under a fund they thought they'd closed. Here's how to find every fund that might still owe you a payout:

1. Log into ATO myGov. The "Manage super" view lists every fund linked to your TFN, including consolidated and lost super accounts. If you see balances under $200, the cover may already have been cancelled, but check anyway.
2. Search the SuperSearch tool via ATO online services for unclaimed and lost super held by the ATO itself. Lost super of $6,000+ is held in members' accounts, not transferred to ATO; below that, the ATO may hold it.
3. Pull insurance certificates from each fund. Even a fund with a $500 balance can carry $200,000 of insurance if premiums were being deducted from a previous higher balance. The certificate is the only document that proves cover.
4. Check the date insurance ceased. Funds are required to cancel insurance after 16 months of inactivity (no contributions). The cancellation date is what matters — if you stopped work before that date, cover was likely active.
5. Look at industry funds for prior employers. Tradies often held REST and Cbus simultaneously; nurses HESTA and First State; teachers UniSuper and Aware. If you worked across industries, you likely have legacy industry-fund accounts.

TPD vs workers comp vs income protection

TPD is one of three Australian compensation streams that may pay for the same disability. They don't cancel each other out — most claimants are entitled to claim two or all three depending on cause and circumstances.

Where the disability is work-related, you can typically claim workers comp and TPD and income protection in parallel. The insurer paying TPD will not deduct workers comp received; the workers comp scheme may have offsets in some states. A specialist lawyer optimises the order and timing.

What to do if your offer seems low

TPD is a binary product — the insurer pays the cover amount or refuses entirely. There's no "negotiation" on amount. If the offered figure looks low, one of these is happening:

• You're being shown the wrong cover figure. Insurers sometimes default to the current cover (after reductions) rather than the cover active on the date you stopped work. Get the certificate showing the cover at the disablement date.
• You haven't claimed under all funds. The first cheque is from one fund only. Run claims with every fund that had active cover.
• You're being offered a partial settlement to drop the claim. Some insurers offer 30-50% of the cover amount as an early walk-away; this is a sign your case has merit and they want to limit exposure. Get a lawyer's review before signing.
• Tax is reducing the gross figure heavily. Members under 60 pay tax on the taxable component. The "net" figure is often 70-85% of the gross — that's normal, not a reduction by the insurer.
• The decline is for the wrong reason. If declined for "able to do other work" but you have specialist reports saying otherwise, the AFCA route reverses or improves most of these decisions.

Tax on TPD payouts

TPD lump sums paid from super are split into tax-free and taxable components. The tax-free component is increased by an "uplift" to recognise the time you would have worked but for the disability. The combined effect for someone under 60 is typically that you net 70 to 85% of the gross payout.

Members aged 60 and over usually receive TPD lump sums tax-free. Always speak to a tax accountant — the rules around ETP caps, low-rate caps, and timing are easy to get wrong. The ATO permanent incapacity guidance covers the basics.

Centrelink and TPD payouts

TPD payments interact with Centrelink in two ways:

1. Asset test — the lump sum (or any remaining balance) counts as a financial asset, deemed at the standard rates for income test purposes
2. Income test — deemed earnings on the lump sum count, even if you don't actually earn that interest

Receiving a TPD payout commonly reduces or cancels Disability Support Pension, JobSeeker, Carer Payment, and Family Tax Benefit. Some claimants intentionally split the payout (taking part as lump sum and leaving part in super) to manage the asset test.