After a successful TPD claim, the lump sum is typically paid into your superannuation account first, then released to you as a benefit payment. Here's what to expect after you receive it.
How the money is paid
The insurance proceeds are paid into your super fund's account in your name. You then apply to the trustee to release the benefit. For most TPD claimants, the full balance including the insurance payout can be accessed as a lump sum or in some cases as an income stream.
Tax on your TPD payout
TPD payouts are not tax-free — they are taxed at a concessional superannuation rate depending on your age and the components of your super account. See our detailed guide on TPD tax. For most people under 60, some tax applies, though it is typically lower than normal income tax rates.
Centrelink impact
A TPD lump sum received and invested may affect income-tested or asset-tested Centrelink payments. The impact depends on how the funds are held. See our Centrelink guide.
Getting financial advice
A significant lump sum is a major financial event. Consider speaking with a financial planner — ideally one experienced in disability payments — about how to invest, protect and structure the money for your long-term situation.
If you haven't yet lodged your claim, start with our free eligibility check to confirm you're on the right track.