ESPS Questions and Answers
What happens once an ESPS claim is submitted?
Upon receipt of an ESPS claim, an acknowledgement email is sent to the claimants nominated email address.
A second email will be sent to notify the claimant once the claim has progressed and assessment of the eligibility of the claim has commenced.
If any further information is required during the assessment phase, an email request detailing the required information/documentation and a due date for that information will be emailed.
Finally, once the assessment is completed, the ESPS decision-maker will reach a determination and finalise the claim.
What if the claim is approved?
If an ESPS decision-maker approves the claim, a letter (or minute) will be provided to detail the decision and any associated financial outcome.
For approved ESPS claims where the Defence service has already been rendered, any associated payment will be loaded onto the Defence Pay System and processed into your nominated bank account shortly thereafter
For approved ESPS claims where the Defence service is ongoing (such as Continual Full-time Service or CFTS), an initial ESPS payment to the date the claim is finalised will be processed into your nominated bank account. The remaining approved ESPS payment balance will then be processed in arrears on a fortnightly basis.
NOTE: A remittance advice will be raised directly from Department of Treasury and Banking for each ESPS payment and provided to you by email.
What if I suffer a substantial loss as a result of Reserve service?
When an employer or self-employed Reservist has suffered a substantial financial hardship/loss by reason of the absence of the employee/Reservist on Defence service, the claimant may make application for ESPS payments at a higher payment rate.
Substantial financial loss means a loss incurred, or that will be incurred, in the ordinary course of the employer's or self-employed member's business because of the absence of the member on Defence service and excludes:
- a loss of a remote, speculative, or indirect kind;
- a loss that has not yet occurred and is not certain to occur;
- a loss of a personal nature or incurred in a personal capacity;
- a loss incurred or that may be incurred other than in the prudent and reasonable conduct of the business;
- a loss of a personal nature or incurred in a personal capacity; or
- a loss incurred or that may be incurred other than in the prudent and reasonable conduct of the business.
Before ESPS payments can be paid at a higher level, it is necessary for the claimant to satisfy the ESPS decision-maker of the following requirements:
- the claimant has suffered substantial financial hardship or substantial financial loss by reason of the employee/Reservist's absence;
- it was not possible in the circumstances for the claimant to make adequate arrangements to avoid the substantial financial hardship or substantial financial loss by reason of the employee/Reservist's absence;
- all reasonable efforts were made by the claimant to avoid or limit the adverse financial consequences;
- other allowances or payments (such as ESPS payments at the standard rate) that the claimant is entitled to receive are not sufficient to redress the substantial financial hardship or substantial financial loss; and
- the claimant applied for ESPS payments on a hardship or loss basis as soon as reasonably possible after becoming aware of the circumstances giving rise to the substantial financial hardship or substantial financial loss.
What if the claim is rejected?
Within seven days of the decision, you should be informed, in writing, that the claim has been refused. This advice should provide a statement of reasons for the refusal and advise you of your appeal options.
Are there any appeal options?
A claimant may request an ESPS decision-maker or Senior Review Officer (whom is appointed by a Service Chief) to review the decision, within 30 days of receiving the notice of decision.
A request must be in writing and set out the reasons for requesting a review.
Administrative Appeals Tribunal Review
A claimant may apply the Administrative Appeals Tribunal (AAT) for a review of a decision by a Senior Review Officer.
An Employer may appeal to the Commonwealth Ombudsman.
A self-employed Reservist may also appeal to the Defence Force Ombudsman.
Where can I get further information?
Last update: Tuesday, 21 March 2017