What do lawyers charge for TPD claims, and when is one worth it?

Start with the fact that reframes the whole question: a law practice cannot lawfully charge you a percentage of your TPD payout. An arrangement where the amount you pay depends on the amount you recover is a contingency fee, and it is prohibited. What a firm can charge is professional fees for the work it does, plus disbursements, plus, on a no win no fee arrangement, an uplift fee that is capped at 25 per cent of the legal costs, not 25 per cent of your money. If someone has quoted you a flat share of your payout, that is the moment to ask exactly who you are dealing with.

Last reviewed: 14 August 2026

The fee arrangement that is not lawful

Under the legal profession rules, a law practice must not enter a costs agreement under which the amount payable depends on the amount of any award or settlement, or the value of property recovered. This is what "contingency fee" means, and it is the arrangement people are usually picturing when they imagine a firm taking a slice of the payout.

The consequences of breaching it are severe, which tells you how seriously it is taken. A practice that enters a costs agreement in contravention of the prohibition is not entitled to recover any amount at all for the legal services provided in the matter, and must repay any amount it has received.

So if you have seen figures like "they take 15 to 30 per cent of your payout" attached to legal services, treat them with real caution. That may describe a claims management or claims advocacy business rather than a law practice, it may be a loose description of what the total bill worked out to as a share of the recovery, or it may be a firm describing its arrangement inaccurately. In any of those cases the right response is the same: ask for the fee basis in writing, and ask directly whether the person you are speaking to is a law practice.

What no win no fee actually means

"No win no fee" is a conditional costs agreement. You pay the practice's professional fees only if there is a successful outcome. Three things about it routinely surprise people:

1. The uplift is on the fees, not the payout. Because the practice carries the risk of not being paid, it may charge an uplift fee on top of its normal fees when it wins. The Victorian Legal Services Board and Commissioner puts the cap in words worth quoting exactly: the maximum uplift "is 25% of the legal fees charged (not a percentage of what was paid to you by the other side)". In litigious matters an uplift is only permitted where the practice reasonably believes a successful outcome is reasonably likely, and if the agreement breaches the rule, the practice cannot recover the uplift at all.

2. No fee does not mean no cost. Disbursements are the money the practice spends on your behalf: medical reports, specialist opinions, filing fees, records requests. On many arrangements you owe these regardless. Medical evidence in a TPD matter is not cheap, so ask specifically what happens to disbursements if the claim fails.

3. If a matter goes to court and you lose, you may pay the other side. Losing a court case can mean paying a proportion of the other party's legal costs. That risk sits outside the no win no fee promise entirely.

The honest caveat about totals

None of the above means legal costs are small. Professional fees plus disbursements plus a lawful uplift can still add up to a substantial share of a payout, and that share is largest when the payout is small, because the work involved does not shrink in proportion. A capped uplift limits one component of the bill, it does not cap the bill.

This is why the sequence matters more than the rate. Free options that resolve the claim leave you with the whole benefit. Paid help that resolves a claim the free options could not is money well spent. Paid help engaged before the free options were tried is the expensive path, and it is the one the advertising is designed to put you on.

When a lawyer is genuinely worth it

There are real situations where legal help earns its cost, and pretending otherwise would be as dishonest as the sales pitch. Consider paid help when:

• The claim has been declined and you dispute the reasons. Particularly where the decision turns on how a definition was applied to your circumstances.
• The medical evidence is complex or contested. Where specialists disagree, where the condition is psychological, or where the insurer's independent examiner reached a different conclusion from your treating doctors.
• The insurer is relying on a restrictive definition, especially the activities of daily living test that ASIC identified as a source of consumer harm in REP 633.
• You have several policies across different funds. Multiple claims with different definitions and different insurers is genuinely complicated work.
• There is a dispute about which policy version applies, or about the date you stopped work, or about whether an exclusion for a pre-existing condition applies.
• You are too unwell to run the process. This is a legitimate reason on its own. If the administrative load is beyond you and there is nobody to help, paying someone to carry it is a reasonable decision.
• AFCA has not resolved it and you are considering what comes next.

When you probably do not need one yet

• You have not lodged the claim. Lodging is free through your fund and does not require a lawyer.
• The claim is progressing and nobody has refused anything. Slow is not the same as denied. See how long a TPD claim takes.
• You have not made a formal complaint to the fund. That is free and carries a 45 day deadline for a response.
• You have not been to AFCA. Free, independent, and binding on the fund in superannuation matters.
• Your only problem is that you do not understand the paperwork. The fund is obliged to help, and free financial counsellors can help with the money side.

Questions to ask before you sign anything

If you do decide to engage someone, these are the questions that matter. A good practice will answer all of them plainly and in writing.

1. Are you a law practice, and who is the solicitor with day to day conduct of my matter?
2. What exactly is the fee basis, and can I have it in writing before I sign?
3. How is a "win" defined in this agreement? Does an offer I reject count?
4. Is there an uplift fee, what percentage, and 25 per cent of what exactly?
5. What disbursements do you expect, and do I owe them if the claim fails?
6. Could I be liable for the other side's costs, and in what circumstances?
7. What is your estimate of total costs, and when will you tell me if it changes?
8. Can I cancel, what does that cost, and what happens to work already done?
9. Have you told me about AFCA, and why do you say it is not the better route here?

That last one is the useful test. A firm that is straight with you will explain where the free route fits. If AFCA is not mentioned at all, ask why not.

Where the rules come from, and a note on your state

The 25 per cent uplift cap and the contingency fee prohibition described here come from the Legal Profession Uniform Law, and the sources cited below are the New South Wales and Victorian regulators. Other states and territories have their own legal profession legislation with broadly similar consumer protections, but the detail can differ. If you are outside New South Wales or Victoria, check with your state or territory's legal services commissioner or law society, and ask them directly whether a percentage of settlement arrangement is permitted where you live.

Wherever you are, you can also complain about a lawyer's costs. Every state and territory has a legal services commissioner, and there are mechanisms to have a bill assessed independently if you think it is unreasonable.

The short version

A law practice cannot lawfully take a percentage of your TPD payout, that is a prohibited contingency fee, and a practice that does it cannot recover anything and must repay what it took. No win no fee means a conditional costs agreement: fees only on a successful outcome, with an uplift capped at 25 per cent of the legal fees, not of your money. You may still owe disbursements, and court losses can bring the other side's costs. Try the free routes first, your fund, then its internal complaints process, then AFCA on 1800 931 678, which is free and binding. Pay for help when the claim is declined, the medical evidence is contested, there are multiple policies, or you are too unwell to run it yourself. Get the fee basis in writing, and ask why AFCA is not the better route.

Common questions

How much do lawyers charge for TPD claims?

Legal costs on a TPD claim are professional fees for the work done, plus disbursements such as medical report fees. A law practice cannot lawfully charge you a percentage of your payout, because that is a contingency fee and it is prohibited. On a no win no fee arrangement the practice may add an uplift fee, and that uplift is capped at 25 per cent of the legal costs, not 25 per cent of your payout.

Can a lawyer take a percentage of my TPD payout?

No. A law practice must not enter a costs agreement under which the amount payable depends on the amount of any award or settlement. That is a contingency fee and it is prohibited. If a practice does it, it is not entitled to recover any amount for legal services in the matter and must repay what it has received. If someone quotes you a straight percentage of your payout, ask whether they are a law practice at all.

What does no win no fee actually mean?

It means a conditional costs agreement: you pay the practice's professional fees only if there is a successful outcome, as defined in the agreement itself. It does not usually mean no cost at all. You may still owe disbursements, and if a matter goes to court and you lose you may have to pay a proportion of the other side's costs. Read the definition of a win in the agreement before signing.

Is there a free alternative to hiring a lawyer for a TPD claim?

Yes, and it should usually be tried first. Your super fund must help you lodge a claim at no cost. If a claim is declined or delayed, the fund's internal dispute resolution process is free, and AFCA is a free and independent external service whose superannuation determinations are binding on the fund. Using AFCA does not stop you engaging a lawyer later if it does not resolve things.

When is a lawyer genuinely worth it for a TPD claim?

When the claim has been declined and the reasons are contested, when medical evidence is complex or specialists disagree, when the insurer is relying on a restrictive definition such as activities of daily living, when there are several policies across different funds, when there is a dispute about which policy version applies or when you stopped work, or when you are too unwell to manage the process yourself.

Free help, first

• Your own super fund. Lodging a claim costs you nothing and the trustee is there to help you do it.
• AFCA, 1800 931 678. Free, independent, no monetary limits on superannuation complaints, determinations binding on the fund. Interpreters on 131 450.
• Legal Aid in your state or territory, for free legal advice where you qualify.
• National Debt Helpline, 1800 007 007. Free, independent financial counsellors, and the right call if money is tight while the claim runs.
• Your state or territory legal services commissioner, for complaints about a lawyer's costs or conduct.

Where this comes from

• Victorian Legal Services Board and Commissioner, No win no fee cost agreements. Source for the uplift being capped at 25 per cent of legal fees and not a percentage of what was paid to you, and for the disbursements and adverse costs points.
• The Law Society of New South Wales, Costs Guidebook, 8th edition, January 2026. Source for the contingency fee prohibition and the consequences of contravening it.
• Legal Services Council, Costs agreements information sheet, July 2022, on conditional costs agreements and uplift fees under the Uniform Law.
• AFCA, Superannuation complaints, for the free external route and the absence of monetary limits on superannuation complaints.
• ASIC REP 633, Holes in the safety net, released 17 October 2019, on restrictive definitions including the activities of daily living test.

About this guide

This is general information, not legal advice and not financial advice. Costs rules differ between states and territories and change over time, and your own costs agreement governs what you pay, not this page. Biz in a Box is an independent Australian small business site. We are not affiliated with Cbus Super, or with any superannuation fund, insurer or law firm. We do not act on TPD claims, we do not refer you to anyone, and we do not take referral fees or commissions. We wrote this page because every other page answering this question is published by a firm that wants the work. Check the fee rules with your state's legal services commissioner, and check your claim with your super fund and AFCA before you pay anyone.