Australian Defence Force Employer Compensation Doug Stedman Director Employer Support Payment Scheme 2 August 2013

EMPLOYER SUPPORT PAYMENT SCHEME Paid to employers to compensate for the loss of an employee on Defence service Also available to self-employed Reservists Conditions apply

OBJECTIVE To assist the contribution that the Reserves make to total Defence capability by : enhancing employer support for Reserve service, and increasing availability of Reservists

OVERVIEW Paid for all types of Reserve service operational deployments exercises and training courses routine duties in units

OVERVIEW Payment is equivalent to average weekly earnings current financial year - $1, per week (for full-time employee) Higher level payments available in some circumstances Taxed

CLAIMS EXPENDITURE FY 2012/13 Total:$16.96m Ops-coded $8.13m 48% Non-Ops $8.83m 52% Navy $2.95m 17% Army $12.51m 74% Air Force $1.50m 9% Employers $10.42m 61% Self-employed Reservists $6.54m 39%

CURRENT ISSUES Loss of control over the scheme Especially Sunset Clause

SUNSET CLAUSE If no further action, scheme will finish 30 June 2014 Defence assessing performance of the scheme in delivering a value for money, required and meaningful capability to the ADF Expect Service Chiefs will support continuation of the scheme.

HELPFUL STRATEGIES Seek to embed cultural support for the scheme across Defence Detailed preparation –Structures and procedures –Entitlements & rules Try to identify situations that will look bad and will be bad – and make them clearly ineligible.