REVISIONS to the Employer Support Payment (ESP) Scheme will apply to claims for periods of service commencing on or after July 1 this year.

At the same time, the former ESP rate of $860.10 per week has been increased to $899.80 in line with changes in average weekly earnings.

The scheme, introduced in June 2001, was reviewed after 12 months of operation and the revisions took effect on July 1.

Deputy Head Reserve Policy and Director of the Scheme Col Doug Stedman said Minister Assisting the Minister for Defence Danna Vale had approved the changes.

“The changes are effective from July 1 but will only apply to claims for periods of service commencing on or after that date,” he said.

“ESP claims submitted for service commencing before July 1, will still be considered under the pre-July 1 provisions.”

New provisions for self-employed reserves will exclude pensions from consideration in determining Principal Source of Income but require self-employed reserves to have derived their Principal Source of Income from their business for a minimum of six months.

Other revisions include the extension of eligibility to receive ESP to employers of Reserve Response Force members after call-out and to Commonwealth departments.

There will also be a separate ESP claim form for self-employed reserves.

An information guide providing detailed advice on all new provisions has been developed and is available at www.defence.gov.au/reserves and will be circulated to units.

Further information is available from ESP Scheme staff at 1800 001 696.

How the changes work

Key revisions include:

• Eligibility to receive ESP extended to Commonwealth Departments.
• Eligibility to receive ESP extended to cover continuous full-time service following a call-out under section 51A, 51B or 51C of the Defence Act 1903 to cover activation of Reserve Response Forces in response to domestic security incidents or under section 50D of the Act in relation to a member of the Reserve Response Force in a civil emergency.
• Provisions to provide eligibility for employers, including self-employed reserves, to receive ESP if the reserve is injured or suffers an illness as a result of the Defence service and is unable to return to work.
• CDF may authorise higher level ESP payments to specified reserves or a specified class or part of the reserves to facilitate provision of a capability required by the ADF.
• Existing provisions for higher level ESP payments because of substantial financial hardship extended to also include substantial financial loss.
• An alternative method for self-employed reserves to establish eligibility for ESP is provided through a legitimate business test.
• Documentation requirements for self-employed reserves to establish principal source of income requirements are strengthened.
• Delegates are authorised to refer claims to the Director of the Scheme for advice or adjudication.
• The Director of the Scheme is authorised to review claims on which a delegate has made a decision within 12 months to determine whether the first decision was made in accordance with the Determination or was appropriate.
• Senior officers who command Defence elements are authorised to delegate responsibility for approving claims to an officer within that element.
• Provisions allowing public holidays to be counted within periods of continuous Defence service.

New provisions are included for self-employed Reserves:

• The requirement for self-employed reserves to have derived their Principal Source of Income from their business/company for a minimum period of six months.
• Removal of pensions as a source of income in Principal Source of Income considerations.
• Provisions identifying time periods for the re-establishment of Principal Source of Income requirements.

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