Changes to ESP scheme

By Squadron Leader Deanna Nott

SIGNIFICANT changes have been made to the Defence Reserves Employer Support Payment (ESP) Scheme.

The ESP scheme provides financial assistance to employers who release their employees for Reserve service.
Payments are also available to self-employed Reservists after they meet additional eligibility criteria.

Director ESP Scheme Doug Stedman said one of the main changes was that the annual qualifying period had been changed from 14 days to two working weeks (10 days).

“When service is undertaken in five-day blocks, generally from Monday to Friday, the qualifying period will be met after two periods of service,” Mr Stedman said.

He encouraged Reservists and their employers to read the new ESP brochure that will become available this month.

“Changes have also been made to the circumstances when part days of service can be counted for ESP payments. Part days can now only be counted if used for travel or for authorised rest or stand-down,” he said.

The Parliamentary Secretary to the Minister for Defence, Teresa Gambaro, recently authorised the changes that only apply to ESP claims for service begun after August 31, 2005.

Claims for service commenced before September 1, 2005, will continue to be assessed under the previous eligibility criteria.

The ESP payment rate for the current financial year is $991.20 per week. In certain cases, higher level payments may be made.

Several changes have also made to ESP for self-employed Reservists.

Eligibility criteria for self-employed Reservists, particularly with regard to principal source of income, have been amended.

For example, the principal source of income must relate to a specified period of at least six months before the relevant Reserve service, and if evidence is provided from a financial adviser or accountant, it must detail amounts of income and meet other criteria.

Deputy Head Reserve Policy Captain Peter Quirke (Navy) said ESP had provided real benefits to ADF capability by supporting Reservists’ service on operational deployments, training exercises and courses, and in undertaking other Defence duties.

For example, recent deployments of ADF medical specialists to Iraq and other operational areas would have been much more difficult without employer support payments to help hospitals cope with the absence of their Reservist doctors.

Captain Quirke said a new Defence Instruction PERS 05-42 would be published detailing the new arrangements. New ESP claim forms will also be available soon.

Further information is available from ESP scheme staff on 1800 001 696 or by e-mail to esp@defence.gov.au

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