Amendment to the calculation of Minimum Salary Level
From 23 April 2007, the Minimum Salary Level (MSL) will be calculated as a gross annual salary (excluding all non-salary benefits) on the basis of a 38 hour week. This will be calculated at the time in the financial year the assessment is made.
Assessment of MSL
For assessment of the MSL, the instrument that applied at the time of visa grant should be used. The calculation will be made on the basis of the salary paid at the time the assessment is made for that financial year.
Example: If the calculation was being made on 30 November 2006, the period of the assessment would be from 1 July 2006 to 30 November 2006.
The only allowable deduction that reduces the salary below the MSL will be PAYG taxation. All other deductions must be authorised by the visa holder in accordance with industrial law and must only be made from payments that are above the rate of the MSL.
When assessing a sponsor’s compliance with their undertaking to pay the MSL, the department may request a wide range of salary related record–keeping documents from the sponsor. Records from the sponsor may include, but are not necessarily limited to PAYG payment summaries, payslips, bank statements, time and wage records, any other records that must be maintained under taxation, superannuation and industrial relations legislation.