Unit of competency details

Elements and Performance Criteria 

Element 

Performance Criteria 

1

Gather and verify data

1.1

Current data on assessable income and allowable deductions are gathered from appropriate sources

1.2

Valuations are made, recorded and disclosed in accordance with business policies and procedures 

1.3

Discrepancies , unusual features or queries are identified, resolved or referred to the appropriate authority

1.4

Accrued or prepaid income and expenditure is identified and adjustments to the value of assets and liabilities  are recorded

2

Calculate taxable income

2.1

Liabilities for tax  are calculated in accordance with current legislation and revenue gathering practices 

2.2

Relevant source documentation  is identified correctly

2.3

Tax returns, statements  and claims take full advantage of available benefits and allowances in accordance with statutory requirements

2.4

Returns are prepared within established timelines

3

Review compliance

3.1

Relevant returns are submitted to appropriate authorities within stated deadlines

3.2

Current obligations  are fulfilled and advice from taxation authorities followed and reported in accordance with statutory requirements 

3.3

Statements give a clear indication of impact of taxation on individual

3.4

Tax office enquiries and income tax audit requirements are met

REQUIRED KNOWLEDGE &SKILLS 

Knowledge requirements include :

NOTE: As stipulated by the Tax Agents Registration Board, the taxation knowledge components only of this accounting unit of competency must be tested through written examination. All other components can be assessed as advised in the Assessment Guidelines section of this Training Package.

income tax legislation

State and Federal Government taxes and charges

options, methods and practices for deductions, benefits and depreciation

ethical considerations for the handling of returns (eg conflict of interests, confidentiality, disclosure requirements)

Skills requirements include :

interpersonal skills and communication skills (eg liaising, listening, consulting)

working with individuals and appropriate authorities to resolve discrepancies, unusual features and queries

report writing and document preparation

recording, gathering and consolidating financial information

researching and identifying legislation and rulings applicable to income taxation

information technology use for the set up and analysis of spreadsheets

planning skills for timetabling and scheduling reports and lodgements

EVIDENCE GUIDE 

Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.

Overview of assessment requirements 

To achieve competency in this unit, a person must be able to demonstrate:

knowledge of statutory requirements

knowledge of state and territory taxes and charges

knowledge of organisational policies and procedures

knowledge of accounting principles and practices

ability to gather and verify data

ability to calculate taxable income

ability to review compliance

knowledge of relevant taxation legislation

Critical aspects of evidence 

Evidence required for demonstration of consistent performance :

Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.

Delivery /assessment relationship to other units :

This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge.

Evidence is most relevant when provided through an integrated activity, which combines the elements of competency for the unit, or a cluster of units of competency.

Assessment requirements 

Method of assessment :

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.

Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

As stipulated by the Tax Agents Registration Board, the taxation knowledge components only of this accounting unit of competency must be tested through written examination.

Context of assessment :

Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.

Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.

Resources required for assessment :

Assessment of this unit of competence requires access to suitable resources to demonstrate competence.

Assessment instruments, including personal planner and assessment record book.

Access to registered provider of assessment services.

The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.

The following variables may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts. If bold italicised  text is shown in Performance Criteria, details of the text are provided in the Range Statement.

Business policies and procedures  may include:

reporting requirements

financial analysis assessments

electronic data entry

recording and filing systems

standard financial analysis techniques

financial management manuals

Discrepancies  may include:

expenditure report mismatches

incorrect payments

absence of auditable trail

inappropriate authorisations

variances from budget

incorrect report formats

Asset and liabilities  may include:

property investments

shares, bonds, securities

loans, leases, debts

plant and equipment

cash

Tax may include :

Capital Gains Tax (CGT)

individual income tax

partnership

Revenue gathering practices  may include:

sales

leasing

investments

billing schedules

lending and financing

fees and charges

Source documentation  may include:

order and supplier documentation

financial institution statements

taxation and statutory returns

vehicle log books

statutory declarations

invoices

receipts

Revenue documentation  may include:

invoices

declarations

bills

sales proceeds

cash received

debit notes

Returns and statements  may include:

financial statements

financial institution statements

asset usage reports

taxation declarations

inventory usage reports

Obligations  may include:

lodgement dates

supporting documentation

explanatory statements

repayment schedules

Statutory requirements  may include:

reporting periods

taxation payment timings

delegated authorities

internal control procedures