9.10 Employer Incentives

Policy Statement

Veterans undertaking a DVA rehabilitation program and in receipt of DVA incapacity payments may be further supported to obtain secure and sustainable employment by incentive payments to an eligible employer who employs the veteran.

Authority

Legislative authority is sourced from the Military Rehabilitation and Compensation (Employer Incentive Scheme) Determination 2026(the EIS) made under section 62A of the Military Rehabilitation and Compensation Act 2004 (MRCA).

Intent

The EIS intends to encourage employers to engage injured veterans who have found it difficult to compete in a tight labour market.

Background

DVA's whole-of-person approach to rehabilitation is underpinned by compelling evidence about the health benefits of good work. ‘Good work’ is defined as work that is safe, enables the person to be productive and engaged and provides economic stability and personal interaction.

The EIS is a vocational rehabilitation approach to assist eligible veterans to find suitable and sustainable civilian work. Payment of wage subsidies is a long-standing feature of employment programs in Australia to encourage eligible businesses to hire eligible jobseekers for ongoing employment.

EIS Participants

Under section 6 of the EIS, veterans who have an assessed vocational need are eligible for the EIS if they are:

• commencing or participating in an approved rehabilitation program that includes vocational activities;

• unemployed and unable to return to their previous employment;

• entitled to have the Commission assist them to find suitable civilian work;

• able to work within the advice of capacity obtained from the treating doctor; and

• in receipt of incapacity benefits from DVA at the time of their initial employment with assistance from the EIS.

EIS Employers to provide eligible employment

Under section 7 of the EIS, employers are eligible for the EIS if, at the time of the initial employment:

• the employment they offer is suitable work provided in Australia;

• they can provide ongoing full or part time paid employment or an apprenticeship or traineeship for the veteran;

• the place of employment is assessed as suitable and compliant with work health and safety standards;

• the employment is compliant with relevant employment laws (including not unreasonably dismissing other workers to create vacancies for workers available with incentives and paying the veteran wages comparable with other workers who perform similar work) and is not self-employment, a subcontracted position, or a government-funded position*; 

• they have not previously employed the veteran - previous participation in a work trial with the employer is acceptable;

• the employer is not an immediate relative of the veteran or controlled by an immediate relative of the veteran as per subsection 15(2) of the MRCA – this includes the spouse, partner, child, parent, grandparent, grandchild or sibling of the veteran; 

• they have not previously received an EIS payment for the veteran; and

• they have provided all relevant information in relation to wages, hours, usual duties and (if any) employment conditions.

*Note: A local government entity can be an eligible EIS employer, provided the employment position is not funded by an Australian state or territory government.

Participation must be pre-approved

Initially, the veteran’s rehabilitation provider will discuss the EIS proposal with the veteran and prospective employer. Under section 7 of the EIS, the employer must provide details of the offer of employment including gross wages, hours of employment, duties and conditions of employment.

EIS participation must be approved by a DVA Rehabilitation Delegate under section 6 of the EIS, before employment commences. Consistent with section 6 of the EIS, a Delegate must be satisfied that EIS participation is likely to lead to sustainable, ongoing employment for the veteran.

Once approved, the DVA Rehabilitation Delegate will:

• advise the employer via an EIS offer letter detailing the requirements to receive reimbursement of wage subsidies; and

• notify the rehabilitation provider of DVA’s expectations in relation to monitoring the veteran’s employment.

Requirements for payments to employers

Under sections 7 and 13 of the EIS, incentive payments can only be paid to a veteran's employer where:

• participation in the EIS is an approved activity in the veteran’s vocational rehabilitation plan;
• a rehabilitation provider has been engaged for an assessment to ensure that the employment is safe and suitable, given the veteran's medical restrictions and the type of work they will be undertaking, and to monitor progress of their participation in the EIS;
• the veteran's DVA Rehabilitation Delegate has approved participation in the EIS prior to employment commencing;
• the employer did not unreasonably dismiss another worker to create a vacancy for the purpose of employing the veteran; and
• the employer is paying the veteran full award wages at a salary rate comparable to other employees doing similar work for the organisation/employer.

In addition, DVA will ensure that, as required by the Military Rehabilitation and Compensation Act 2004, the veteran's incapacity payments have been ceased or reduced in accordance with the veteran’s new earnings.

Employer incentives payable

Under section 12 of the EIS, employer incentives are only payable after the employer has paid the veteran, and are payable on the following basis consistent with section 10 of the EIS:

• reimbursement of 75% of gross wages* for the first three months of employment;
• reimbursement of 40% of gross wages* for the second three months of employment; and
• a retention bonus of 10% of annual gross wages* (up to a maximum of $2000) if the employment is sustained beyond 12 months.

*Gross wages exclude allowances, overtime, superannuation, commissions and any compensation payments. 

Claim for incentive payments

The incentive payments are paid to the employer, as wages reimbursement and a retention bonus. Consistent with subsection 11(1) of the EIS, employers must use DVA Form Claim for reimbursement under the Employer Incentive Scheme (D9521) to claim the incentive payments. This form is provided to the employer, together with the EIS offer letter, at the beginning of the employment period.

Employers should forward claims for incentive payments at these time periods after the employment commenced:

• at the conclusion of three months;

• at the conclusion of six months (the second three months’ period); and

• after twelve months has elapsed.

Under section 11 of the EIS, a claim for an incentive payment is unable to be accepted by DVA if it is submitted:

• before the end of the three, six or 12-month employment period to which the payment relates; or

• more than 15 months after the veteran’s employment commenced.

Ongoing monitoring

The veteran’s placement must be monitored by the veteran’s rehabilitation provider for a reasonable time, i.e. until the DVA Rehabilitation Delegate is satisfied that no further monitoring of the veteran’s employment is necessary and there are no other rehabilitation activities that need to be considered or completed for the veteran.

 DVA may request information

• Under section 14 of the EIS, DVA delegates may request information from the EIS participant or the employer to ensure compliance with the requirements of the EIS. Information that may be requested includes documents in respect of wages paid and business records relating to the employer’s compliance with the conditions of the scheme.

• Requested information must be provided within 10 business days. If the information is not provided, claims for incentive payments may be refused (according to subsection 14(4) of the EIS).

Related Policies, Legislation and Information

Policy

• 9 Vocational Rehabilitation
• 9.9 Work Trials
• 9.12 Assistance finding suitable employment

Legislation

• Military Rehabilitation and Compensation (Employer Incentive Scheme) Determination 2026
• Military Rehabilitation and Compensation Act 2004 (MRCA)