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I've Stopped Working Due to Illness — What Are My Options?

3 May 2026 · 7 min read

Stopping work due to illness is overwhelming. Here's a practical overview of the financial entitlements you may be able to access as an Australian who can no longer work.

If illness has forced you to stop working, you're likely facing both a health crisis and a financial one. Knowing what you're entitled to — and in what order to pursue these entitlements — can make an enormous practical difference.

1. Sick leave and annual leave (if still employed)

If you're still employed, you can continue drawing on accrued sick leave while you're absent. Once sick leave is exhausted, you may be able to use annual leave. Speak with your employer about your situation early.

2. Income protection insurance

If you have income protection insurance (through super or a standalone policy), you may be entitled to monthly benefit payments — typically up to 70% of your pre-disability income. This is different from TPD and covers the early phase of disability.

3. TPD insurance through super

If your condition is likely to be permanent, TPD insurance through your superannuation may provide a lump sum payout. This is one of the most significant and overlooked entitlements for Australians who cannot return to work. See our TPD basics guide.

4. Centrelink — Disability Support Pension

If you have a permanent physical, intellectual or psychiatric condition affecting your ability to work, you may be eligible for the Disability Support Pension (DSP) through Centrelink.

5. Early super access

On grounds of permanent incapacity, you can access your super balance early — in addition to any TPD insurance claim. Check your options with a free eligibility check.

Frequently asked questions

What's the first thing I should do if I can't work due to illness?

Notify your employer, see your GP for documentation, and check your income protection and TPD insurance cover. These steps can all happen simultaneously.

Can I get Centrelink and TPD at the same time?

Yes. A TPD claim through super is separate from Centrelink entitlements, though a lump sum received may affect asset and income tests. See our Centrelink guide.

Disclaimer: This article is general information only and is not legal or financial advice. TPD Claim Support is a claims information and support service, not a law firm. Please seek advice tailored to your circumstances.

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