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TPD vs Workers' Compensation: What's the Difference?

24 April 2026 · 7 min read

Workers' compensation covers your immediate needs after a work injury. TPD through super provides a lump sum for permanent disability. Here's how they differ — and why you may be entitled to both.

If you've been injured at work, you may be aware of workers' compensation (WorkCover) but less aware of your separate right to claim TPD through your superannuation. Understanding the difference between these two systems is important — and knowing you can often claim both.

Workers' compensation: what it covers

  • Weekly wage replacement while you are off work and during recovery
  • Medical and rehabilitation expenses related to the work injury
  • Permanent impairment lump sum (in some states) for lasting physical damage
  • Common law damages in serious cases where negligence is involved

Workers' comp only covers work-related injuries or illnesses and is administered by state-based schemes (WorkCover, icare, WorkSafe etc.).

TPD through super: what it covers

  • A lump sum payment for permanent inability to work due to any condition — work-related or not
  • Funded through the insurance component of your superannuation
  • Administered by your super fund and its insurer

TPD covers any cause of disability — including non-work conditions like cancer, heart disease or mental illness.

Can you claim both?

Yes, in most cases. A work-related injury can give rise to both a workers' comp claim and a TPD claim through your super simultaneously. Some policies have offset provisions, but many do not. Start with our free eligibility check.

Frequently asked questions

Do I have to choose between workers' comp and TPD?

No. They are separate entitlements and can generally be claimed at the same time for the same injury.

Does workers' compensation affect how much TPD I receive?

Some TPD policies contain offset provisions relating to workers' comp. Others do not. Your specific policy terms determine this.

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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