How Much Do Lawyers Charge for TPD Claims? Fees Explained
- 3 days ago
- 6 min read
If you're considering getting help with a TPD claim, the first question most people ask is: what is this going to cost me? It's a completely reasonable concern, especially when you're already dealing with reduced or no income due to a serious illness or injury.
The good news is that in Australia, the standard arrangement for TPD claims assistance is no-win, no-fee. You should not need to pay anything upfront or out of pocket to get professional help with your claim. But "no-win, no-fee" covers a wide range of fee structures, and not all of them are equal. Understanding what you're agreeing to matters.
This guide explains how TPD claim fees work in Australia, what to expect from a no-win, no-fee agreement, what questions to ask before engaging anyone, and how Better Claim approaches its fees.
Over $1 billion in super insurance benefits goes unclaimed in Australia every year, partly because people assume professional claims help will cost them money upfront. It doesn't. 50% of Australians don't know their superannuation includes insurance cover at all.
You've already been through enough. The right claims specialist should never ask you for money upfront. Better Claim works on a no-win, no-fee basis, our fee comes from your settlement, not your pocket.
What Is a No-Win, No-Fee TPD Claim Agreement?
A no-win, no-fee arrangement means you pay nothing if your claim is unsuccessful. The claims specialist or lawyer only gets paid if your claim results in a payout. Their fee comes out of that settlement.
This model exists because TPD claimants are, by definition, people who have been unable to work. Asking them to pay hourly legal rates upfront would make professional help inaccessible to most people who need it.
Most reputable firms operating in the Australian super insurance space work on this basis. Be cautious of anyone who asks for significant upfront fees before your claim is lodged or assessed.
How Are TPD Claim Fees Calculated?
Percentage-based fees
The most common structure is a percentage of the settlement amount. After your claim is approved and the lump sum is paid, the firm's fee is calculated as a percentage of what you receive.
Typical percentages in the Australian market range from around 15% to 30% of the settlement, depending on the complexity of the claim, the firm, and whether the matter proceeds to appeal or litigation.
For a claim that settles at the average Australian TPD payout of $440,000, a 20% fee would be $88,000. That leaves $352,000 in your hands.
Fixed-fee components
Some firms use a hybrid structure: a no-win, no-fee arrangement for the claim overall, but with specific fixed fees for particular stages, such as an independent medical examination or court filing if litigation is required. Make sure you understand what is and isn't included before you sign.
Hourly rates (less common for TPD)
Some lawyers charge hourly rates for super insurance matters rather than a success-based percentage. This is less common for straightforward TPD claims and typically reserved for complex litigation. Hourly rates for specialist insurance lawyers in Australia generally range from $350 to $600 per hour. This model carries more risk for the claimant because costs accumulate regardless of outcome.
What Your Super Fund Won't Tell You About Claim Costs
You don't legally need a lawyer or claims specialist to lodge a TPD claim. You can do it yourself. But success rates, processing times, and payout amounts tend to be significantly better with professional assistance.
Insurers have specialist in-house teams assessing your claim. Going it alone means you're an unwell individual navigating a process designed and managed by professionals whose job is to minimise payouts.
Incorrect evidence or form errors can result in denial. Re-lodging a claim after a denial is possible but adds months to the process. Getting it right the first time matters.
The complexity of your medical evidence directly affects your payout. A specialist who knows how to frame reports against your fund's specific TPD definition can make a material difference to the outcome.
What Does Better Claim Charge?
Better Claim operates on a strict no-win, no-fee basis. Our fee comes out of your settlement only if your claim is successful. You pay nothing if your claim is unsuccessful.
What you get at no cost:
Free initial eligibility assessment
Super fund tracing and coverage confirmation
Review of your TPD definition and assessment of claim strength
Guidance on what medical evidence you need
Our fee is a percentage of your settlement and is disclosed clearly before you engage us. There are no hidden charges, no upfront costs, and no billing by the hour.
Claims Specialists vs Lawyers: What's the Difference?
Claims specialists (like Better Claim) are experienced professionals who manage the end-to-end claims process. We handle eligibility assessments, form preparation, evidence coordination, insurer negotiation, and AFCA complaints. We sit between DIY and litigation.
Lawyers typically become involved when a claim reaches the point of legal escalation, such as Federal Court proceedings. Not every TPD claim needs a lawyer. Most are resolved through the claims process or AFCA.
Better Claim works with specialist super insurance lawyers for matters that escalate to litigation. In those cases, legal fees are discussed separately and transparently.
Questions to Ask Before You Engage Anyone
Before signing any fee agreement for TPD claim assistance, ask:
What is your fee as a percentage of my settlement?
Are there any additional costs I might be charged beyond your percentage?
What happens if my claim is denied, do I pay anything?
What stages of the process does your fee cover? Does it include AFCA complaints or appeals?
Do you have experience with my specific super fund or my type of condition?
Can you give me a plain-language explanation of the agreement before I sign?
Any reputable firm will answer these questions clearly and without hesitation.
Is It Worth Getting Help With a TPD Claim?
This is one of the most common questions we hear. Here's the honest answer: it depends on your situation.
If your claim is straightforward (a clear diagnosis, excellent medical evidence, a cooperative super fund), a confident and organised person can manage their own claim. It takes time and persistence, but it is possible.
If any of the following apply, professional help is likely to significantly improve your outcome:
Your TPD definition is complex or you're unsure which definition applies
You have already been denied once
Your medical evidence is incomplete or your specialist isn't familiar with how TPD reports should be structured
You have multiple super funds to manage
Your condition is a mental health diagnosis (these claims face higher denial rates)
You don't have the physical or cognitive capacity to manage a multi-month administrative process while unwell
Better Claim only charges if you win. So the risk of engaging us is low, and the potential upside is significant. Start Your Free Claim Assessment →
What Happens to Your Fee After Settlement?
When your TPD claim is approved and the lump sum is paid into your super account, here is what happens:
The insurer pays the benefit into your super account
You apply to access your super under a condition of release (TPD is a recognised condition of release)
Once released, the gross amount is in your hands
Better Claim's fee is calculated on the settlement amount and deducted at that point
Tax on TPD payouts may also apply (see our guide: Tax on Your TPD Payout)
The net amount you receive is your settlement minus fees and applicable tax. Better Claim will walk you through this calculation clearly before your claim is finalised.
Frequently Asked Questions
Do I have to pay anything if my TPD claim is unsuccessful?
No. Under Better Claim's no-win, no-fee agreement, you pay nothing if your claim does not result in a payout. There are no upfront fees and no charges for the initial eligibility assessment.
Can I negotiate the fee percentage?
It's reasonable to ask. Fee structures can vary based on the complexity of your claim and the likelihood of success. The important thing is to have the fee clearly documented in writing before you engage.
Does the fee come out of my super or from my bank account?
The fee is deducted from your settlement after the payout is received. It does not come out of your other savings or ongoing super balance.
What if my claim goes to AFCA or court, are those costs extra?
At Better Claim, our no-win, no-fee arrangement covers the full claims process including AFCA complaints. If a matter escalates to court proceedings, that is discussed separately and transparently with you before we proceed.
How does Better Claim compare to using a private lawyer?
Better Claim sits between DIY and litigation. We handle most claims without the need for formal legal proceedings, which keeps the process faster and the fees lower. For matters that escalate, we work with specialist super insurance lawyers.
Is there a minimum claim amount for Better Claim to take on a case?
Contact us and we will assess your situation. We look at the merits of your claim, not just the potential payout amount. Check Your Eligibility - It's Free →
Resources
AFCA: Free dispute resolution for super insurance claims
ASIC MoneySmart: Information on seeking financial advice
ATO Super Lookup: Find your super funds via myGov
SuperConsumers Australia: Independent super research
This article is intended as general information only and does not constitute legal, financial, or insurance advice. Super insurance entitlements vary between funds and individual circumstances. Better Claim recommends seeking professional advice specific to your situation. For complaints or disputes, contact AFCA at afca.org.au.
