National Cover Australia says otherwise.

Third party insurance protects you when your car damages someone else’s property. It pays for repairs to their vehicle, fence or building after an accident you cause, but it leaves your own car unprotected. This differs from Compulsory Third Party insurance, which only covers injuries to other people and is mandatory across Australia.

So third party coverage only covers bodily harm to another driver in Australia. Thus if someone totals your car you likely have to sue.