Following the APRA October 2021 Income Protection reforms, most retail Income Protection policies issued from that date include a 'two-year income reset' provision — also known as 're-assessment after two years' or 'income recalculation'. After 24 months of continuous benefit payments, the insurer recalculates the monthly benefit based on the income you would have been earning at that two-year point, rather than your original pre-disability income. The intent is to keep IP benefits aligned with the broader workforce and prevent claimants from being indefinitely paid based on a long-past salary. In practice, this means: if your original pre-disability income was $120,000/year and the wages for your role at the two-year mark would have been $130,000/year, your benefit increases. If wages for your role have stagnated or you would no longer be employed at the same level, the benefit may decrease. For some claimants, especially those with multi-year recoveries, this introduces uncertainty into long-claim financial planning. Pre-October 2021 policies generally do not have this provision and continue at the original benefit. If you are comparing IP options, check the PDS for the post-2021 reset clause and how it interacts with CPI indexation. The reset is one of the more material differences between legacy and post-reform policies.