Disclaimer – This article contains general information and education only. It is not financial or legal advice. Payout amounts will vary depending on your policy wording, superannuation balance, age, and medical circumstances. Always seek tailored advice from a financial adviser or superannuation/insurance-claims lawyer.
One of the most common questions we hear from Queenslanders considering a Total and Permanent Disability (TPD) claim is:
“How much money will I actually get?”
The answer is: it depends.
TPD payouts are not guaranteed set amounts. Your actual payout depends on the insurance cover you held, the rules of your superannuation fund, and how those benefits are taxed when paid.
This guide covers:
- How TPD payouts are calculated in Queensland.
- Factors that increase or reduce your final payout.
- Typical payout ranges.
- Common deductions and fees to watch for.
- Real-life Queensland case examples.
- How Queensland compares to other states.
How are TPD payouts calculated?
| Factor | Explanation |
|---|---|
| Sum insured | The TPD cover you held under your super fund or retail policy at the time you stopped work. |
| Superannuation balance | Your existing super balance may be combined with the TPD benefit and paid together. |
| Date of disablement | Determines which policy applies and how much cover was active. |
| Policy definition | Own occupation, any occupation, or ADL (activities of daily living) affects eligibility but not necessarily the insured amount. |
| Age | Younger workers often have higher default cover, which reduces as you get older. |
| Multiple funds | If you had multiple accounts with active TPD cover, you may be able to claim from each. |
Typical payout ranges in Queensland
While every case is different, most Queensland TPD payouts fall within these ranges:
| Policy type | Typical range | Notes |
|---|---|---|
| Default super fund TPD cover | $50,000 – $400,000 | Default cover in most industry and retail funds. |
| Retail/standalone TPD policy | $200,000 – $2 million+ | Direct policies often have higher insured amounts. |
| Multiple super funds | $100,000 – $600,000+ (combined) | Possible if more than one account had active cover. |
| ADL-only policies | $50,000 – $100,000 | Very restrictive; usually linked to low-balance or inactive accounts. |
Deductions from your TPD payout
Your gross insured amount is not the same as the cash in your hand.
| Deduction | How it applies |
|---|---|
| Tax | Payouts inside super may be taxed if withdrawn before age 60. Rates range from 17%–22% on the taxable component. |
| Legal fees | If you use a lawyer, fees are usually deducted from your payout (often No Win, No Fee). |
| Disbursements | Medical reports or independent assessments may be recovered from your payout if you win. |
| Super fund premiums/admin | Unpaid premiums and admin fees may be deducted. |
| Government recoveries | Centrelink and Medicare can recover amounts depending on benefits you received while out of work. |
Case examples in Queensland
| Example | Facts | Outcome |
|---|---|---|
| Back injury claim | Michael, 42, builder. $300,000 insured cover + $50,000 super balance. | Claim approved. $350,000 credited to super, $60,000 tax withheld (under preservation age). |
| Mental health claim | Sarah, 36, teacher. Two active super accounts ($120,000 + $150,000). | Approved after dispute. Combined payout $270,000 credited to super. |
| Retail policy claim | Ahmed, 50, IT consultant. $1 million standalone policy. | Claim approved with neurological evidence. Paid $1 million directly, tax-free. |
| Cancer claim, ADL policy | John, 55, retail worker. Low-balance super with $80,000 ADL cover. | Approved under strict ADL test. $80,000 credited to super, then released. |
Pitfalls to avoid
❌ Assuming the payout shown on your annual super statement is the final amount.
❌ Forgetting about tax – payouts inside super are taxed differently depending on your age.
❌ Overlooking multiple funds – many Queenslanders have more than one valid TPD claim.
❌ Accepting quick insurer rejection – many claims succeed after further evidence or appeal.
❌ Not factoring in Centrelink or Medicare recoveries.
How to maximise your payout
| Action | Why it matters |
|---|---|
| ✅ Check your super statements | Confirms your cover at your disablement date. |
| ✅ Lodge with all funds | Multiple claims may boost your total payout. |
| ✅ Get detailed medical evidence | Specialist reports reduce disputes. |
| ✅ Consider timing of withdrawal | Waiting until 60 can mean tax-free access. |
| ✅ Seek legal advice | Lawyers can challenge denials and maximise release. |
FAQs
What is the average TPD payout in Queensland?
Between $100,000 and $300,000 for default super claims.
Is a TPD payout always tax-free?
No. Inside super, payouts are taxed if withdrawn before age 60. Outside super, retail policy payouts are usually tax-free.
Can I get more than one TPD payout?
Yes. If you had multiple super accounts with active cover, you may claim from each.
Do mental health claims pay less than physical injury claims?
No. The insured amount is the same, but mental health claims are often disputed more.
Will my life insurance be reduced if I claim TPD?
Often yes. Many policies “link” TPD and death cover, reducing life cover if you claim TPD.
Key takeaways
- Typical Queensland TPD payouts range from $50,000 to $400,000 for super, with retail policies covering much more.
- Deductions like tax, legal fees, and government recoveries reduce the cash in hand.
- Younger workers often have higher insured cover than older ones.
- Multiple super funds may mean multiple payouts.
- Legal advice improves your chances of approval and maximises your payout.
For Queenslanders, a TPD payout can provide life-changing financial support after illness or injury. But the final amount you’ll receive depends on your policy wording, cover at your date of disablement, and deductions such as tax and fees.
At TPD Claims Lawyers, we help Queenslanders check their cover, lodge multiple claims if eligible, and fight for the maximum payout. Contact us today for a free, no-obligation consultation to find out what your TPD payout could look like.
Last updated: 8 September 2025