The APRA-mandated 70% cap applies up to a defined income threshold, after which several insurers apply a sliding scale that reduces the replacement percentage on income earned above that threshold. The exact threshold and scale vary by insurer. For example, Zurich's Income Safeguard product applies the 70% cap up to a stated annual income tier and a lower percentage to income above that tier (the threshold is set by Zurich and disclosed in their PDS — confirm the current figure with the latest version). The reason for the sliding scale is to maintain APRA's 'incentive to return to work' principle for higher-income earners, where 70% of a very high salary could exceed reasonable income replacement. For most professionals earning under the threshold, the full 70% applies on gross income. If your income is in a higher band, the effective replacement rate may be lower than 70% on aggregate. When comparing policies, check each insurer's stated cap, sliding-scale tiers (if any), and maximum monthly benefit amount. Insurers on our panel publish these tiers in their respective PDS documents — the figures move occasionally, so always verify against the current PDS rather than older summaries.