“Total and Permanent Disability Insurance” is designed to relieve financial pressure in case you become permanently disabled as a result of illness or injury.

The statistics paint a sobering picture: approximately 9 million Australians currently hold Total and Permanent Disability (TPD) insurance, yet many remain underinsured or completely unaware of what their policies actually cover.

The harsh reality is that permanent disability doesn't discriminate. Whether you're a 25-year-old tradesperson or a 45-year-old office manager, the risk exists. What's more concerning is that many Australians discover the gaps in their coverage only when it's too late to address them. This article examines why TPD insurance deserves serious consideration in every working person's financial planning strategy, backed by current industry data and regulatory insights.

An unexpected critical illness or accident that results in the breadwinner being unable to work can have a devastating effect on a family, especially when the breadwinner does not have Trauma Insurance. I've witnessed firsthand the devastating financial impact that critical illnesses can have on families. While most working Australians understand the importance of health insurance and income protection, there's one crucial safety net that remains significantly under-utilised: trauma insurance. The statistics paint a sobering picture that every working Australian should understand.

The Harsh Reality of Critical Illness in Australia

The numbers don't lie, and they should concern every working Australian. Each year, more than 150,000 Australians receive a cancer diagnosis [1]. Cardiovascular disease affects over 1.2 million Australians, often leading to heart attacks [1]. Additionally, more than 350,000 Australians suffer strokes annually, with over one-third experiencing at least one permanent impairment as a result [1]. These aren't distant statistics – they represent real people whose lives and financial security were turned upside down in an instant.

As a financial advisor in Australia, it’s rare to see a piece of government policy walk back from the brink in such a significant way. For months, the investment community has been holding its breath over the proposed Division 296 tax on large superannuation balances. The initial proposal, let's be frank, was fraught with issues. But on October 13th, 2025, Treasurer Jim Chalmers announced a significant overhaul, which is a welcome dose of common sense for those with substantial retirement savings.

The air of uncertainty that has clouded long-term retirement planning has finally begun to clear. The most contentious elements of the original bill—a tax on unrealised “paper” gains and an unindexed $3 million threshold that would have ensnared more and more Australians over time—have been scrapped. In their place is a more pragmatic, tiered system that, while still a tax increase, provides a much clearer and more stable framework for the future.

Life is unpredictable. For many Australians, the risk of serious illness, disability, or death is low probability but very high impact — loss of income, medical bills, mortgage repayments, family hardship. Personal insurance helps manage those risks.

Some data:

• The Value of Group Insurance in Superannuation report found that about 30% of working members of super funds will experience at least one insured event (death, disability etc) over their working life. (Actuaries Australia)
• Life, TPD, and Income Protection (IP) claims via superannuation funds paid roughly A$6.6 billion in new claims in 2021 alone. (ASFA)

These figures show that insurance is not a “nice-to-have” but an essential part of financial resilience.

Property investment remains one of the most common routes to wealth building in Australia. Western Australia, including Perth and regional WA, has been attracting renewed interest in 2025, thanks to rising rents, constrained supply, and relatively strong capital growth in certain areas. But it is not without risk. Before investing in property in WA, or anywhere, you need to think carefully about how it aligns with your finances, goals, risk tolerance, and timeframe.

Advantages of Property Investment in Western Australia

Here are some of the specific benefits WA offers, backed by recent data:

1. Strong Rental Yields in WA
   • Apartments in WA have delivered 6.2% gross yields as of year ending March 2025. (Camden Professionals)
   • Regional WA shows even higher yields; some units/houses outside Perth are returning around 8–8.5%+ gross yields. (Savings)
   • Within Greater Perth, yields for houses are more modest (~4.5%) but units tend to be higher. (API Magazine)
2. Capital Growth Potential
   • WA dwelling values have grown strongly over the past few years. From March 2020 to March 2025, Perth dwelling values rose ~75.4%, and regional WA nearly 80%. (Savings)
   • Certain property types in Perth — e.g. duplexes, smaller houses (e.g. two-bedroom) — have seen large recent increases. For example, two-bedroom duplexes rose about 22.3% in one year to a median price ~$615,000; two-bedroom houses ~21.2% to ~$665,000. (API Magazine)
3. Strong Rental Demand and Low Vacancy
   • Vacancy rates in Perth had been low (e.g. ~2.5% in the first half of 2025). (loans.com.au)
   • Rents have increased significantly: for houses and units in Perth year-on-year rent rises of 4.7% (houses) and 7.4% (units). (openagent.com.au)
4. Relative Affordability Compared to Eastern Capitals
   • While WA prices have grown, for many investors Perth is still more affordable than Sydney, Melbourne, etc., in terms of what you get per dollar. Some suburbs in Perth still offer lower entry price points. (propertyfinanceinvest.com.au)
5. Diversification
   • Adding property to a portfolio that may include shares, cash, superannuation, etc., diversifies the kinds of risk you face.
   • Regional properties especially diversify geography ‒ exposure to different economic cycles (e.g. mining, agriculture, tourism) compared to metro Perth. (stageproperty.com.au)
6. Tax and Policy Benefits
   • Australia allows negative gearing (losses can offset other income) and depreciation deductions for investment property expenses. (Moneysmart)
   • Some WA-regional areas may benefit from government incentives, grants, or favorable tax treatment depending on policy. (Providence Property)