How to Make a TPD Claim for Depression
If depression has made returning to work impossible, a Total and Permanent Disability (TPD) claim can provide a life-changing lump sum payment.
You may already have this cover without realising it, as TPD insurance is often automatically included in Australian superannuation policies.
While TPD is usually associated with physical injuries, mental health is now the leading cause of TPD claims in Australia — with insurers paying out over $2.2 billion annually (Council of Australian Life Insurers 2025 data).
This guide provides a step-by-step roadmap to securing your TPD payout, from navigating strict policy definitions to gathering specialist evidence proving your depression is permanent.
What is depression?
Depression is more than just feeling down; it is a serious condition that affects every aspect of your life, including your ability to hold a job. With one in seven Australians affected, it’s a leading cause of long-term disability.
Common symptoms that often lead to a TPD claim include:
- Poor concentration, memory loss, and brain fog.
- Constant fatigue and disrupted sleep.
- Withdrawal from social activities and inability to manage daily tasks.
- Persistent feelings of hopelessness or worthlessness.
If you are struggling with these symptoms, reaching out to your GP is a vital first step for both your health and your potential claim. Organisations like Beyond Blue and the Black Dog Institute offer excellent support resources for those navigating this path.
Can I make a TPD claim for depression?
If your depression is severe enough that you can no longer work, you can generally claim a TPD payout.
Unlike a workers compensation claim, you don’t have to prove your job (or anyone else) caused your depression.
Importantly, your TPD claim doesn’t have to relate to depression alone. If you have multiple mental or physical health conditions, they can be included in the same claim.
If you’re unsure whether your situation qualifies for a TPD claim, use our free claim checker to find out in minutes.
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How to make a successful TPD claim for depression
To secure a TPD payout for depression, you must prove that your condition is permanent and prevents you from returning to work. Follow these seven essential steps:
1. See your GP or psychologist
Visit your GP or psychologist for a formal diagnosis of your depression. Their records are important evidence for proving your TPD claim.
2. Document your condition
Keep a detailed log of how depression impacts your daily life and work capacity. Note specific instances where symptoms like poor concentration, memory loss, or fatigue interrupted your tasks or caused a return-to-work attempt to fail.
Make sure to include how the condition affects basic activities like cooking, cleaning, and social interaction, as insurers use these ‘Activities of Daily Living’ to gauge the severity of your condition.
3. Gather strong medical evidence
A formal diagnosis from a GP or psychiatrist is just the starting point. You need specialist reports that explicitly state your condition is unlikely to improve enough for you to work again.
Insurers often look for at least six months of treatment history to confirm the disability is permanent, so ensure your doctors document all medications and therapies you have tried.
Other key evidence that can support your TPD depression claim:
- Psychiatric Impairment Rating Scale (PIRS) reports: These are vital for proving the severity of your mental and social impairment.
- Pharmacy records: A history of trying multiple antidepressant or antipsychotic medications shows the insurer your condition is ‘treatment-resistant’.
- Medicare and PBS histories: These provide a timeline of your consistent engagement with mental health professionals.
- Witness statements: Letters from former colleagues or family members describing the ‘before and after’ of your personality and work capacity.
Stability vs. permanency
Insurers often stall claims by saying your condition isn’t ‘stable’ yet — this is an unfair delay tactic. You don’t need to be 100% stable to claim; you only need evidence proving that your return to work is unlikely despite ongoing treatment.
4. Match your policy definition
To make a successful TPD claim, your condition must meet the specific definition of Total and Permanent Disability set out in your policy. The first step is identifying whether the policy is an ‘own occupation’ or ‘any occupation’ policy.
- Own occupation policies: These require proof that you’re unlikely to ever return to your specific job or occupation.
- Any occupation policies: These require proof that you’re unlikely to work again in any occupation within your education, training, or experience. Because this definition is narrower, insurers often argue that you have transferable skills and could retrain or move into a less demanding role. To win your claim, you must prove that your depression affects universal work skills, such as concentration, the ability to follow instructions, or social interaction.
You can read more about different types of TPD policies in our detailed guide.
No matter your policy, you don’t have to prove you’ll never work again. The legal test is whether returning to work is unlikely — not impossible (as decided in TAL v Shuetrim [2016]).
5. Meet the terms of your policy
You’ll need to meet all the terms contained in your policy. These commonly include:
- Waiting periods: Verify that you have met the mandatory waiting period (usually three to six months of being off work) before lodging your claim.
- Active TPD policy: You need to make sure your TPD insurance was active on your last day of work. If a super account hasn’t received contributions for 16 months, the insurance can be cancelled. However, if you stopped working before the account became inactive, you may still have a claim — even if the policy is now cancelled.
- Work history: Many policies require you to have been working a minimum number of hours (usually 15 to 20 hours per week) for at least 6 to 12 months before your disability began. If you were unemployed, on long-term leave, or working very few hours when your depression became debilitating, the insurer may assess you under a much stricter definition.
Missing a single procedural requirement is one of the most common reasons claims are denied.
6. Lodge your TPD claim
You’ll need to lodge your TPD claim with your superannuation fund, even though the insurer actually assesses the claim. This usually involves:
- Completing your super fund’s claim forms.
- Attaching all your medical reports and employment evidence.
- Supplying proof of income and work history.
Getting the paperwork right from the start is crucial, as errors or gaps often lead to delays or denials.
While you wait for your claim to be processed, you may be facing financial hardship. The Financial Rights Legal Centre offers free legal advice and financial counselling to help you manage debts and understand your consumer rights.
7. Receive your TPD payout
If your claim is approved, your TPD benefit is paid directly into your super fund.
If your claim is denied, you may still have strong grounds to appeal — but it’s important to speak with a lawyer before responding to the insurer or lodging an appeal, as early mistakes can seriously affect your chances.
How much will I get for a TPD depression claim?
Most Australians with default TPD cover through an industry super fund (like AustralianSuper) can expect a lump sum between $150,000 and $400,000 — but we’ve helped clients successfully secure up to $5.7 million.
The main factors that impact your TPD payout include:
- Your age: Most default policies are ‘age-based’, meaning the payout amount peaks in your 30s and early 40s and gradually decreases as you get closer to retirement age.
- Multiple policies: This is one of the most overlooked factors. If you have multiple super funds from previous jobs, you may be able to claim a separate lump sum from each one, provided you meet each policy’s terms and the cover was active when your depression forced you to stop work.
- Withdrawal date: A TPD payout is paid into your super first. If you’re under 60, some tax usually applies when you withdraw it, but it’s rarely the full 22% people expect. Typically, you’ll pay between 1% and 18%. This is because the ATO applies a tax-free uplift based on your age and when you first joined super, meaning the younger you are, the more of your payout is tax-free.
Real-life examples of TPD payouts for depression
To give you a clearer idea of what this can look like in real life, below are three recent examples where we assisted clients with TPD claims for depression.
Background
At just 35, Mario was forced to leave his IT administrator career due to severe depression, psychosis, and panic disorder. However, his insurer attempted to deny his claim, arguing that because of his youth and technical skills, he could eventually return to work in the future.
How our lawyers helped
Mario’s policy featured a strict definition requiring him to prove he could no longer perform ‘Activities of Daily Living’ (like showering, dressing, or walking) or had a 25% Whole Person Impairment. We coordinated with specialists to produce reports directly addressing each of these clauses, proving the way his condition impacted every aspect of his life and confirming he was extremely unlikely to return to work.
Mario’s final TPD payout
By challenging the insurer’s view of Mario’s future employment, we forced a settlement without a prolonged legal battle. Within two months, we secured a $1 million TPD payout to provide Mario with permanent financial security.
Background
At 44, Juliette was forced to leave her regional supervisor role due to a complex combination of physical and psychiatric illnesses, including depression. Despite her extensive medical history, the insurer argued her professional skills were ‘highly transferable’, and she could simply retrain for a work-from-home role.
How our lawyers helped
We countered the insurer’s argument by coordinating with Juliette’s specialists to prove her conditions were life-altering, not just career-ending. We demonstrated that retraining was a legal impossibility given her need for constant medical management, effectively shutting down the insurer’s attempt to redirect her to other work.
Juliette’s final TPD payout
By presenting a comprehensive, evidence-backed submission from the outset, we bypassed months of typical insurer delays. Just four weeks after Juliette sought our help, we secured a $700,000 TPD benefit to provide her with immediate financial stability.
Background
John developed debilitating depression due to workplace bullying. When he tried to make a TPD claim, his treating doctor suggested he could ‘retrain’ for a different career. The insurer used this to argue John wasn’t permanently disabled. That’s when John came to us for help.
How our lawyers helped
When we took over John’s case, our lawyers identified that the insurer was applying an unfairly strict interpretation of the TPD policy. We successfully argued that John’s policy did not require him to retrain for a completely new vocation, especially when his age and background made such a shift unrealistic.
John’s final TPD payout
On top of John’s standard TPD payout, our lawyers fought to include interest on his lump sum to compensate for the insurer’s unreasonable delays. This resulted in a $310,000 payout, providing John with the long-term financial security he had been told was out of reach.
How long do TPD claims for depression take?
Most TPD claims for depression are finalised within 6 to 12 months of lodgement. Factors that may impact how long your claim takes include:
- Medical evidence: Insurers often stall claims by requesting extra Independent Medical Examinations (IMEs) if your initial specialist reports don't explicitly address your policy’s strict definitions.
- Permanency: Because depression isn't as ‘visible’ as a physical injury, insurers may delay decisions to see if further treatment (like a new medication or therapy) leads to recovery.
- Policy complexity: Claims for larger payouts or those under ‘any occupation’ definitions require more detailed and rigorous evidence, often pushing the process toward the 12-month mark.
- Super Trustee review: If your policy is through super, the Trustee must perform a separate assessment after the insurer approves it, typically adding 1 to 2 months to the final payout date.
What if my TPD claim is denied?
Denied TPD claims are all too common with depression claims — but it’s rarely the final word. Many initial denials are overturned when challenged with the right legal strategy. Here are the steps to take:
- Internal review: You usually have 28 days to appeal to the insurer or super fund. A super fund then has 45 days to review the decision, while private insurers generally have 30 days to respond.
- AFCA review: If the internal review is unsuccessful, the next step is the Australian Financial Complaints Authority (AFCA). You generally have two years from the final review decision to lodge a complaint.
Keep in mind, appeals require more than asking the insurer to reconsider. You’ll need new evidence that directly responds to the reasons for rejection, such as clearer medical or vocational opinions.
For more details, see our guide to denied TPD claims.
Do I need a lawyer for my TPD claim?
You can lodge a TPD claim yourself, but mental health claims are harder to prove. Unlike physical injuries, there’s no X-ray or MRI to rely on. This gives insurers room to argue that your condition is temporary or that you could return to work.
An experienced lawyer ensures your medical evidence is framed in the precise legal language your policy requires — proving your incapacity is permanent.
Here are key situations where legal advice can make a difference:
- Pre-claim planning: You are still working, but need to know the exact moment to stop so you don't accidentally void your insurance cover.
- Eligibility confusion: You have multiple super funds and aren't sure if you can claim multiple payouts.
- Insurer stalling: Your claim has been ‘under assessment’ for months, and the insurer keeps requesting repetitive or irrelevant medical information.
- Navigating 'retraining' issues:The insurer claims you can work in a different industry, and you need vocational evidence to prove that it’s unrealistic.
- Case law submissions: Preparing detailed legal arguments that show how courts have previously ruled on similar TPD definitions — moving your case beyond just a medical report.
- Specialist medical networks: Accessing our network of psychiatric experts who specifically understand how to document TPD requirements for insurers. They can provide treatment, evidence for your claim, and respond directly to the insurer’s own psychiatrist reports.
- Challenging a denial: Your initial claim was rejected, and you need to lodge a formal appeal with fresh medical evidence.
Because we operate on a No Win, No Fee basis, you can get advice on these issues at no cost.
If you proceed with us, we cover all upfront expenses — including specialist medical reports and vocational assessments — and you pay nothing unless your TPD claim succeeds.
Frequently asked questions
Time limits for TPD claims vary depending on the terms of your policy. Some policies don’t set a strict deadline, but others include a ‘prejudice clause’, which can reduce or cancel your entitlement if you wait too long to lodge your claim.
If your claim is denied, you must appeal within a strict deadline (usually 28 days). And if you’re unhappy with the results of the review, you’ll need to appeal to the Australian Financial Complaints Authority (AFCA) within two years of the review decision date.
Don’t panic if you’ve missed these deadlines — just get in touch with a lawyer. We can help you apply for a time limit exception and get your TPD claim back on track.
While most TPD policies cover depression, there are two common situations where your claim might be blocked:
- Pre-existing conditions: Some policies exclude illnesses you had before the insurance started. However, simply having a history of depression doesn’t automatically disqualify you. If you were working without restrictions when the cover began, or if your condition significantly worsened later, you may still be eligible.
- Underwritten policies: Some policies are ‘underwritten’, meaning the insurer assessed your health at the start and may have specifically excluded a mental health condition if you disclosed it at the time.
Every policy is open to interpretation. If you’re unsure whether an exclusion applies to you, our TPD lawyers can review your specific policy wording and provide free advice on your entitlements.
In most cases, a successful TPD claim requires evidence of treatment from a psychologist. We know the cost of mental health care can be a major hurdle, especially if you’re unable to work.
Unfortunately, insurers usually insist on detailed medical records and assessments from a psychiatrist before approving a TPD benefit. That’s why we cover the upfront cost of medical assessments, including psychiatrist appointments. If ongoing treatment is needed, we’ll cover that too.
This means you can access the psychiatric support you need while also building the strong medical evidence required for your claim—without paying anything upfront.
If your claim is successful, these costs are included in our fees. And if it isn’t, you won’t receive a bill from us.
In almost all cases, you must be off work for three to six months before lodging a claim. However, there are some situations where working reduced hours may not automatically disqualify you.
- Failed work trials: If you attempted to return but couldn’t sustain it due to your depression, this ‘failed trial’ actually strengthens your evidence that you are unlikely to return to work permanently.
- Marginal work: Some policies allow claims if you can no longer work more than 15 hours per week.
- The ‘real world’ test: If you are only working because of a sympathetic employer (like a family member) providing ‘sheltered’ duties that don’t exist in the general workforce, you may still meet the TPD definition.
In each of these situations, your TPD claim may be harder to prove or receive more insurer pushback. If you haven’t stopped work and are looking to get a TPD payout, it’s crucial to speak to an experienced lawyer before starting a claim.
Receiving a TPD payout does not immediately affect your Centrelink payments. Superannuation is generally an ‘exempt asset’ for people under the Age Pension age.
However, if you choose to withdraw that money from your super and put it into your bank account, it will then be assessed under Centrelink’s income and assets tests. This could reduce your Disability Support Pension or JobSeeker payments.
To avoid this, many people choose to leave their TPD payout inside their super fund and only withdraw small amounts as needed to minimise the impact on their Centrelink entitlements.
Yes, if you developed severe depression at (or because of) work, you can usually claim both workers compensation and TPD. But the way you run the claims matters, and poor coordination can cost you benefits.
Workers comp vs. TPD: What’s the difference?
TPD pays a lump sum if you’re permanently unable to work, while workers comp typically provides weekly payments for work-related conditions.
If your depression causes long-term issues (which it likely does if you’re eligible for TPD), you may also receive a separate lump sum for permanent impairment. Both claims rely on strong medical evidence, but winning one claim doesn’t automatically mean you’ll win the other.
How the two claims interact
When running both claims, here are the main things to watch out for:
- Conflicting medical evidence: This is the biggest risk. A workers comp doctor might say you have ‘some capacity’ for light duties, while your TPD specialists say you’re permanently unfit for work. Insurers often share information, and evidence suggesting improvement in one claim can be used to deny the other.
- Offset clauses: Some super funds reduce your TPD payout by amounts you’ve already received through workers comp.
If your policy doesn’t include an offset clause, you may be entitled to receive your full TPD lump sum on top of your workers comp benefits. This is common in many industry super funds, including AustralianSuper and Australian Retirement Trust (ART).
How to make both claims
If you’re thinking about making both a workers compensation and TPD claim for depression, we strongly recommend speaking to a lawyer first. Our dedicated workers comp and TPD teams can coordinate to provide tailored advice on your rights — helping you decide which claim to run first, how to manage medical evidence, and the best way to maximise your overall payout.
