Employer Support Payment FAQs

A.      As soon as possible. 

You should note that if the claim is submitted more than six months after the start of the Defence service being claimed, any service rendered more than six months previously will not be eligible for payment unless special justification is provided and a late waiver is granted. Special rules apply to the granting of late waivers. This six month requirement does not apply to Defence service being used to meet the annual Qualifying Period (see Q.4).

An Employer Support Payment cannot be made until the Defence service has been undertaken. If the Reservist is undertaking a period of continuous full-time Defence service, a claim can be submitted as soon as the Defence signal authorising the service has been issued (if possible, a copy of the Defence signal should be submitted with the claim). Once the claim is approved, payments can be made fortnightly, once each fortnight of Defence service has been completed.

Ref:      Defence Determination sections 9(4) and 11(1) DI (G) PERS 05-42 paragraphs 105 – 107 and 137 - 140

A.      The following Defence service is eligible service for ESP purposes:

•      Reserve service undertaken as normal peacetime training or service and remunerated using Reserve training salaries,
•      Voluntary continuous full-time service (CFTS),
•      CFTS rendered as a result of a call-out order utilising the Defence Force to protect against domestic violence, and
•      CFTS rendered as a result of a call-out order by a member of the Reserve Response Force in relation to a civil emergency. 

For a period of Defence service to count as eligible service for ESP purposes, the duration of the service must be five consecutive days or more.  When a Reservist works a number of days preceding or following a public holiday or stand-down day, then these days may be counted in determining whether the period of service constitutes five consecutive days. There are also special provisions for part days of service and Voluntary Unpaid Attendance / Voluntary Unpaid Service days.

The Reservist must be released to undertake the Defence service and not undertake duties for the business or company while on the Defence service being claimed (except in emergency situations or with prior written permission from the Reservist's Commanding Officer or Branch Head).

The Reservist must be released for service from their civilian employment on non-accrued leave (e.g. military leave, leave without pay).  If a Reservist is released by their civilian employment utilising accrued leave (e.g. annual, sick, long service leave etc), the employer is ineligible for an ESP payment for those days (or to count these days towards the annual Qualifying Period (see Q.4).

Ref:      Defence Determination sections 6 and 7 DI (G) PERS 05-42 paragraphs 17 – 28, 52 – 53 and 92

A.      Ordinary Reserve service (Reserve service undertaken as normal peacetime training or service and remunerated using Reserve training salaries) is protected Defence service.  Voluntary CFTS is also protected Defence service if the relevant Service Chief or delegate designates the service as protected service under section 12 of the provisions of the Defence Reserve Service (Protection) Act 2001.

Voluntary CFTS that the relevant Service Chief or delegate does not designate as protected service under section 12 of the provisions of the Defence Reserve Service (Protection) Act 2001 is unprotected Defence service.

Whether the Defence service is protected or unprotected does not affect the ESP entitlement. On the ESP claim form, an employer must sign a declaration confirming they have undertaken to provide the employment protection benefits of the Defence Reserve Service (Protection) Act 2001 to the Reservist, regardless of whether the service is protected or unprotected.

For further information on protected/unprotected CFTS, please call the Office of Reserve Service Protection on 1800 001 696 (option 1).

Ref:      Defence Determination section 6(1) DI(G) PERS 05-42 paragraphs 29 – 30 

A.      To be eligible for ESP payments, an employer and the Reservist must complete a Qualifying Period each financial year.  The Qualifying Period is a total of two weeks of continuous Defence service.  These two weeks can be undertaken in a single period or as multiple periods of continuous Defence service.

If an employer employs a number of Reservists, a separate Qualifying Period must be completed for each Reservist before ESP payments can be made in respect of that Reservist.

The Defence Reserves Support website at www.defence.gov.au/reserves has further Qualifying Period scenarios and examples.

ESP is not payable for Defence service used to meet the Qualifying Period requirement except for claimants under CDF Approval for Reserve Health professionals. However, the Qualifying Period service must be listed on the first claim form submitted each year.  If Defence service dates are not listed on the claim form, this Defence service can not be counted towards meeting the Qualifying Period (and a reduced payment will result as the first two weeks of claimed service will be taken to meet the Qualifying Period requirement).

To be used to meet the Qualifying Period requirement, the Defence service must be eligible service (eg the Reservist cannot be utilising accrued leave such as annual, sick, long service leave etc).

Ref:      Defence Determination section 4 DI(G) PERS 05-42 paragraph 40

A.      Upon completion of the Qualifying Period, payment will be made for eligible claimed Defence service. Once an employer has qualified for ESP, payment will be made for each discrete completed week of continuous Defence service undertaken in that financial year.  A claim form must be submitted and approved for each period of continuous Defence service.  Payment will be made in arrears.

If the Qualifying Period is undertaken as part of a single, continuing block of service, payment of ESP would commence from day 15.  If the Qualifying Period is undertaken in more than one block of service and there are additional eligible days of service in the last block, payment would start from the next day after the completion of the Qualifying Period. If there are no additional eligible days of service in that block, payment would start once a further eligible block of service is completed.

Payment of ESP will be made as soon as practicable after the claim is approved.  For short periods of service (up to 21 days) payment of ESP will be made, wherever practicable, no later than 14 days after the delegate has approved the claim.

For Reservists on extended periods of continuous Defence service (or greater than 21 days), payments will be made on a fortnightly basis, in arrears, until the completion of the period of the continuous Defence service.

ESP may be paid for a maximum period of 78-weeks for a single period of continuous Defence service.  The 78-week period commences after the complete of the Qualifying Period.

Ref:      Defence Determination sections 4 and 12(2)(ii) DI(G) PERS 05-42 paragraphs 40 & 104, 137 – 139

A.      For an employer of a Reservist to apply for an ESP payment, a fully completed ESP claim form must be submitted. The following documentation must be provided with the first ESP claim in each financial year (the documentation must relate to the period immediately prior to the Defence service being claimed):

1.      Evidence that you employ the employee/Reservist (e.g. payment summary, group certificate, payroll slip, superannuation guarantee contribution payment evidence, employee number, employment contract, or other similar evidence).

2.      Evidence that your business is bona fide and a registered employer (e.g. notification of Australian Business Number, registration from the Australian Taxation Office, certificate of incorporation for a company, business name registration certificate, or other similar evidence).

3.      For Part-Time Employees Only – evidence of normal work hours (e.g. last two months rosters, last two months payment details including hours worked, employment contract, or other similar evidence).

Note: Part-time employment is generally taken to mean regular paid employment for less than 35 hours per week. If a Reservist is in more than one part-time employment, the ESP entitlement is shared on a pro-rata basis between the employers. If a Reservist is in a part-time and a full-time employment, the part-time employer is not entitled to ESP.

Fully completed ESP claim forms will still need to be submitted by an employer for all subsequent periods of Defence service within a financial year for which the employer wishes to apply for ESP payments. However, no evidentiary documentation needs to be submitted with subsequent claims relating to service within the same financial year, unless further documentation is requested by the ESP delegate.

A.      For a self-employed Reservist to apply for an ESP payment, a fully completed ESP claim form must be submitted. A self-employed Reservist may demonstrate eligibility under either the Principal Source of Income or Legitimate Business Test provisions of the Defence Determination.

Principal Source of Income

The Reservist must provide evidence that their business or company is bona fide, is operating or trading, and has provided their Principal Source of Income for a period of at least six months, immediately prior to the Reserve service being claimed.

First Claim

The following supporting documentation must be provided with the Reservist’s first ESP claim. Evidence must be provided for each of the three elements. The Principal Source of Income documentation must relate to the period immediately prior to the Defence service being claimed and cover a minimum length of six months:

1.      Proof that business or company is bona fide (at least one of these is required)

a.      Notification of Australian Business Number registration from the Australian Taxation Office;

b.      Certificate of Incorporation;

2.      Proof that the business or company is trading or operating (at least one of these is required)

a.      Current Business Activity Statement for the business or company;

b.      Current financial statement for the business or company, certified by the business/company’s financial adviser or accountant;

c.      Current business tax return (with the ATO notice of assessment if a sole trader providing an individual tax return – if not yet received, the notice of assessment must be forwarded within seven days of its receipt);

3.      Proof that the business or company has provided the Reservist’s Principal Source of Income for a continuous period of at least the previous six months (at least one of these is required)

a.      Reservist’s current personal tax return with the ATO notice of assessment - if not yet received, the notice of assessment must be forwarded within seven days of its receipt;

b.      Reservist’s current financial statement, certified by the member’s financial adviser or accountant (this statement must relate to the Reservist’s finances, not to the business);

c.      Other evidence from a financial adviser or accountant concerning the Reservist’s income (specific requirements apply – see the Defence Reserve Support website at www.defence.gov.au/reserves at ‘Additional information for Self-employed Reservist, Principal Source of Income for an example).

Further claims

When a self-employed Reservist has provided evidence of their Principal Source of Income over an assessment period prior to a period of Defence service, this evidence can be used with future claims for up to three years unless there is a break between periods of eligible service (that is, service for which an ESP payment was received or which was used to meet the annual Qualifying Period requirement) of six months or longer.

After three years or when there is a break of six months or longer between periods of eligible service, new Principal Source of Income evidence must be submitted for a new assessment period with the first ESP claim for the next period of Defence service that is undertaken.

New Principal Source of Income documentation can be submitted by a self-employed Reservist at any time throughout the three year window.

When relying on previously submitted Principal Source of Income documentation, no new documentation needs to be submitted with the ESP claim form.

Ref:       ESP self-employed Reservist claim form AD138-2 - Section B, sub-section (i) Defence Determination section 3B DI(G) PERS 05-42 paragraphs 71 and 81 - 85
 
Legitimate Business Test

In exceptional circumstances where it would be unfair to apply the Principal Source of Income requirement, a self-employed Reservist may submit a claim with supporting evidence to satisfy the Legitimate Business Test.

Reservists applying under the Legitimate Business Test provisions must provide documentation to support the following eligibility criteria. This documentation must relate to the period immediately prior to the Defence service being claimed and relate to a minimum length of six months:

1.      Proof that business or company is bona fide (at least one is required)

a.      Notification of Australian Business Number registration from the Australian Taxation Office;

b.      Certificate of Incorporation;

2.      Proof that the business or company is trading or operating (at least one is required)

b.      Current Business Activity Statement for the business or company;

c.      Current financial statement for the business or company, certified by the business/company’s financial adviser or accountant;

d.      Current business tax return (with the ATO notice of assessment if a sole trader providing an individual tax return – if not yet received, the notice of assessment must be forwarded within seven days of its receipt);

The following additional information will assist with a Legitimate Business Test claim but is not mandatory

•      Detailed Business Plan
•      Evidence of prior experience
•      Evidence of market research
•      Other relevant evidence or information
•      Evidence of specialised knowledge
•      Evidence of capital investment in the business or company
•      Evidence of advertising

Ref:      ESP self-employed Reservist claim form AD138-2 - Section B, sub-section (iii) Defence Determination section 3C DI(G) PERS 05-42 paragraphs 86 - 90

Q8.      Where do I send my ESP claim form?

A.      All claim forms must be sent to a Defence official (the ESP delegate) for processing.  Each Service (Navy, Army and Air Force) has different processing locations. A list of the ESP delegates for each Service can be found on the Defence Reserves Support website at www.defence.gov.au/reserves.  Click on Info for Reservist or Info for Employers, then Employer Support Payments. On the Employer Support Payments Overview page, follow the link “For information on where to submit your Claim Form, click here” for a listing of each delegate and address details.

Navy – There is just one ESP delegate.

Army – There are a number of regional delegates. The ESP claim should be sent to the delegate responsible for the region where the Army Reservist undertakes Defence service. Special arrangements apply in relation to ESP claims for some Reservists working in the ACT.

Air Force - The ESP claim should be sent to the Commanding Officer of the Reservist’s Reserve squadron (or Commanding Officer of 1 Airfield Defence Squadron for Airfield Defence Squadron members).

Q9.      I submitted an ESP claim a while ago but haven’t received any payment.  How do I find out what has happened to it?

A.      When an ESP delegate receives an ESP claim, an acknowledgment email is sent to the contact person on the claim form advising that the claim has been received.  This acknowledgement email also provides contact details for the Service ESP delegate area processing the claim.

When seeking information on the status of an ESP claim, please ring or email the contact details on the acknowledgment email.  If you have not received (or have lost) the acknowledgment email, please call the Defense Reserves Support help line on 1800 803 485. They will be able to provide contact details for the appropriate Service ESP delegate area.

Q10.      Where can I find information on the ESP Scheme?

A.      For more extensive information regarding the ESP Scheme, please refer to the Defence Reserves Support website at www.defence.gov.au/reserves and follow the Employer and Reservist links, then the Employer Support Payment link. 

You can also contact the Defense Reserves Support help line on 1800 803 485 and/or refer to the ESP claim forms which also contain valuable information. 

For enquiries regarding a current ESP claim, please contact the ESP delegate area processing the claim (see Q.9).