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Defence Force Reserves as an approved activity 001-09070040



Effect of Defence Force Reserve Activity on customers

Table 1: This table describes the effect of a Defence Force Reserve Activity on customers.

Activity

Service Limit

Evidence

Income treatment

Defence Force Reserve Training

This includes Defence Indigenous Development Program - 7 month residential program.

Nil

Signed Training Notice plus a Training Signal, Notice of Annual Camp or equivalent.

Exempt

Defence Force Reserve Service (of 35 or more hours per week)

Not approved during first 3 months of JSP/YA/SpB.

Maximum 12 weeks in any 12 month period.

Signed Training Notice plus a Training Signal, or, Notice of Annual Camp or equivalent.

Exempt

Part Time Reservist Service (20 but less than 35 hours per week)

None

Signed Training Notice plus a Training Signal, or, Notice of Annual Camp or equivalent.

Exempt.

Defence Force continuous Full Time Service (pays income tax on salary)

Not eligible

Cannot receive JobSeeker Payment (JSP), Youth Allowance (YA) or Special Benefit (SpB) as regarded as in normal full time employment.

Continuous full time service

Customer's employment agreement with the Defence Force Reserves specifically states that the nature of the service is continuous full-time service.

Not Exempt

Income from reserve service is not exempt - will be coded for PP customers (other customers lose qualification or payment).

Mutual obligation requirements for different groups of customers

Table 2: This table describes mutual obligation requirements for the different groups of customers.

Example

Description

1

30 hours per fortnight of Defence Force Reserve Service

Helen is the principal carer of Ethan aged 8 and participates in 30 hours of Defence Force Reserve Service each fortnight. Helen is fully meeting the mutual obligation requirements through this Reserve duty. Therefore, Helen is Centrelink managed with nil job search requirements. Helen's Reserve pay and allowances are exempt income.

2

Less than 30 hours of Defence Force Reserve Service

Glenn is the principal carer of Joe aged 9 and participates in 28 hours of Defence Force Reserve Service each fortnight. As Glenn is not participating for 30+ hours per fortnight, Glenn will be required to undertake other activities to meet the mutual obligation requirements. This will be determined by either the agency or their Employment Services Provider according to who is managing the job seeker. If Glenn is not fully meeting the mutual obligation requirements by undertaking other approved activities that qualify for being Centrelink managed, Glenn will be Provider managed. Glenn's Reserve pay and allowances are exempt income.

3

JobSeeker Payment with full-time mutual obligation requirements

John is a customer on JobSeeker Payment with full-time mutual obligation requirements, and has been on payment for 6 months. John is participating in full-time (35 hours per week) Defence Force Reserve Service for the next 2 months.

John is Provider managed and will have to discuss the participation in Defence Force Reserves with the Provider.

John's Reserve pay and allowances are exempt income.

If John does not end this arrangement after 2 months, but instead continues the Reserve Service at this level (35 hours per week) for more than 12 weeks, the JobSeeker Payment will be cancelled. Similarly, if John undertakes another period of 35 hours per week Reserve Service it will count towards the limit of 12 weeks in any 12 month period. Once the 12 weeks has been exceeded, payment will be cancelled if John continues this amount of Reserve Service.

4

Youth Allowance

Nicole has reclaimed Youth Allowance after being cancelled due to undertaking 35 hours per week reserve service for more than 12 weeks in a 12 month period. Nicole has again commenced reserve service of 35 hours per week, 4 weeks after the Youth Allowance was regranted. Nicole has not been on payment again for at least 3 months, so the reserve service cannot be approved as meeting the mutual obligation requirements. Nicole's Youth Allowance is immediately cancelled again.