This seems fine over the winter months when people are working shorter hours and the salary is generally well in excess of the minimum hourly rate (currently $12.50 per hour for a qualifying worker) multiplied by the number of hours worked.
Over spring and summer periods employers have to be sure what they are paying is actually in accordance with the Minimum Wage legislation. A quick calculation is all that is needed to see whether you are complying or not. You need to divide the weekly (or fortnightly) earnings for the employee by the number of hours actually worked in that week (or fortnight). The resulting hourly rate must be at least $12.50 (currently) for a qualifying worker. Where the $12.50 threshold is not reached then the employer will be liable for wage arrears and potentially a penalty for under payment of wages.
Employers need to be very careful to keep accurate records of what they actually pay their staff and the number of hours actually worked by their employees.
If a dispute arises as to what hours are actually worked it is likely the investigating body will take the point of view presented by the person with the most accurate records; in many cases this will be an employee who has kept a diary of the hours they believe they have worked.
In terms of what can and what cannot be accounted for as income, in terms of the minimum wage legislation, only direct salary and the value of board and lodgings can count as income. Other benefits cannot be counted unless they are payments in money.
If the employer puts a dollar value on other benefits and then makes a deduction for them from the weekly/fortnightly remuneration package then they too can count as income. For example if the employer puts a value of $20.00 per fortnight on the provision of house meat and then makes a deduction for that amount from the weekly/fortnightly remuneration, it can be counted as income in the hands of the employee. This is generally the principle that applies to the board and lodgings amount: it is nominally paid to the employee and then a deduction for that amount is made from the weekly/fortnightly remuneration.
Again, as I’ve said before, if you are in any doubt about whether what you are paying is correct or not then speak to your lawyer, accountant or payroll specialist, they should be able to point you in the right direction.
