Employer support payments are revised

The ESP Scheme was introduced in June 2001. It provides direct financial support to eligible employers who discharge their obligations to release Reservists to attend continuous Defence service.

The current rate of ESP payable is $860.10 per week but this will increase to $899.80 per week from 1 July 2003.
For employers, including self-employed Reservists, to be eligible for payments under the Scheme relevant criteria must be met.

For example, ESP only recognises periods of Defence service of 5 consecutive days or more and the employer and Reservist must complete a 14 day qualifying period each year before the employer is eligible for payments.

Following its first 12 months of operation, the ESP Scheme has been reviewed. As a result, a number of changes are to be made.

The Minister Assisting the Minister for Defence, Danna Vale, has approved these changes in a revised Ministerial Determination.

The changes will be effective from 1 July 2003 but will only apply to claims for periods of service commencing on or after that date. ESP claims submitted for service commencing prior to 1 July 2003 will still be considered under the pre 1 July 2003 provisions.

Key revisions to the Scheme include:

• Eligibility to receive ESP is extended to Commonwealth Departments;
• Eligibility to receive ESP is 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 are included to provide eligibility for employers, including self employed Reservists, to receive ESP if the Reservist 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 be provided to specified Reservists 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 are extended to also include substantial financial loss;
• An alternative method for self employed Reservists to establish eligibility to receive ESP is provided through a legitimate business test;

New provisions are included for Self-Employed Reservists:

• The requirement for Self employed Reservists to have derived their Principal Source of Income from their business/company for a minimum period of 6 months;
• Removal of pensions as a source of income in Principal Source of Income considerations; and
• Provisions identifying time periods for the re-establishment of Principal Source of Income requirements;

Documentation requirements for self employed Reservists 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.
• There will also be a separate ESP Claim Form for Self-Employed Reservists.
  
  An information guide providing details advice on all new provisions is being developed and will be circulated to units. It will also be available from the Reserves website at www.defence.gov.au/reserves. Additional information may be obtained from ESP Scheme staff at 1800 001 696.

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