Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to process business taxation requirements related to Business Activity Statements (BAS) and Instalment Activity Statements (IAS), including the completion of Activity Statements.

This unit has application to a variety of financial services sectors. It is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements, including various aspects of taxation law (including but not limited to the Income Tax Assessment Act 1936 , and the Income Tax Assessment Act 1997 ), other relevant legislation and Goods and Services Tax (GST) rulings.

The Tax Practitioner's Board (TPB) administers specific educational and experience requirements for registration of BAS agents and sets specific assessment requirements that must be met.

The varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.

Application of the unit 

This unit applies to individuals who are responsible for providing business activity statement (BAS) services and related bookkeeping tasks across all industries and who are working directly for organisations or are small business owners, contractors or service providers.

Prerequisite units 

Employability skills 

This unit contains employability skills.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

ELEMENT 

PERFORMANCE CRITERIA 

1. Identify individual compliance and other requirements

1.1. Legislative and regulatory requirements  and organisational and industry requirements  relating to Activity Statements are researched, documented and expert advice is sought to clarify issues where applicable.

1.2. Requirements for information, advice or services outside the individual's scope of operation are identified and additional information, advice or services are accessed, and networks are established and used where necessary

1.3. Lodgement schedule requirements are identified and documented

1.4. Entity's cash flow and payment options  are assessed and discussed with management to ensure sufficient funds

2. Recognise and apply GST implications and code transactions

2.1. GST  principles are identified, applied and recorded

2.2. Purchases and/or payments are identified, coded as per GST classifications  and split into capital and non-capital as appropriate

2.3. Sales and/or receipts are identified and coded as per GST classifications

2.4. Accounting data is processed to comply with tax reporting requirements

3. Report on payroll activities

3.1. Total salaries, wages and other payments  for the accounting period are identified and reconciled

3.2. Amounts withheld  from salaries, wages and other payments for the accounting period are identified and reconciled in conjunction with payroll department if applicable

4. Report on other amounts withheld , Pay As You Go (PAYG) instalments and taxes

4.1. Amounts withheld from other payments for the accounting period are identified and reconciled in conjunction with other departments if applicable

4.2. PAYG instalment amount is verified or, where applicable, calculated or, where applicable, calculated for other taxes 

5. Complete and reconcile the Activity Statement

5.1. Activity Statement reports are generated where required, checked and validated with any errors identified and correctional bookkeeping entries made

5.2. Adjustments for previous quarters, months or year-end are made where necessary

5.3. BAS and/or IAS return is completed in accordance with up-to-date statutory, legislative, regulatory and organisational schedule

5.4. Figures completed on the BAS/IAS form are reconciled to journal entries, profit and loss statement, GST and other control accounts

6. Lodge Activity Statement

6.1. Activity Statement is checked and signed off by an appropriate person as identified by statutory, legislative and regulatory requirements

6.2. Activity Statement is dispatched in accordance with statutory, legislative and regulatory requirements

6.3. Payment/refund is processed and recorded

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• communication skills to:

• confirm work requirements, using questioning and active listening as required
• liaise with others, share information, listen and understand
• use language and concepts appropriate to cultural differences

• numeracy and IT skills to:

• accurately analyse, code, record and store data in accordance with organisational requirements
• identify and make adjustments as necessary to any inconsistencies in numerical data
• access and use appropriate financial management software, spreadsheets and databases
• use internet information

• analysis for accessing, interpreting and managing relevant financial data
• literacy skills for interpreting documentation and compiling reports
• self-management skills for complying with ethical, legal and procedural requirements
• problem solving skills to identify any issues that have the potential to impact on the Activity Statement compilation and lodgement process and to develop options to resolve these issues when they arise or refer to other professionals as appropriate
• organisational skills, including the ability to plan and sequence work to meet statutory, legislative, regulatory and organisational deadlines particularly with relation to the lodgement of Activity Statements
• teamwork skills to identify activities required with business owners and tax agents

Required knowledge 

• Australian Taxation Office (ATO) requirements, including meeting of deadlines in relation to Activity Statements
• current statutory, legislation and regulatory requirements related to the preparation of Activity Statements
• accounting terminology in order to understand and maintain knowledge of statutory, legislative, regulatory and other requirements
• GST terminology, classifications, regulations and obligations
• characteristics of software necessary for research or to record information electronically
• TPB requirements in relation to registration as a BAS agent
• The obligations of a BAS agent under the Tax Agent Services Act 2009 (TASA 2009), including the Code of Professional Conduct and the Civil Penalty provisions

EVIDENCE GUIDE 

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the ability to:

• interpret and comply with relevant provisions in the following Acts and their associated regulations:

• Tax Agent Services Act 2009  (TASA 2009 )
• Fringe Benefits Tax Assessment Act 1986 
• Superannuation Guarantee  (Administration ) Act 1992 
• Superannuation Guarantee Charge Act 1992 
• A New Tax System  (Goods and Services Tax ) Act 1999 
• Income Tax Assessment Act 1997 
• Income Tax Assessment Act 1936 
• Taxation Administration Act 1953 
• Privacy Act 1988 

• interpret and comply with relevant ATO and TPB requirements, including TPB registration requirements where applicable
• apply GST terminology and appropriate application to financial transactions
• meet taxation requirements for business purposes and taxation parameters related to a range of business types
• use relevant accounting terminology when maintaining accounting records for a variety of business types for taxation purposes
• accurately complete all sections of both BAS and IAS for multiple entity types

• lodge statements within the allocated timeframe.

Context of and specific resources for assessment 

Assessment must ensure:

• competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
• access to and the use of a range of common office equipment, technology, software and consumables
• access to an integrated financial software system
• access to relevant legislation and industry material

access to the ATO and TPB and materials available from the ATO and TPB, including through the internet.

Method of assessment 

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

• evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
• oral or written questioning on underpinning knowledge and skills
• setting and reviewing workplace projects and business simulations or scenarios
• evaluating samples of work
• accessing and validating third party reports.

Assessment methods approved by the Tax Practitioners Board must be met for BAS agent registration.

Guidance information for assessment 

If undertaking this unit for processing BAS and IAS, including the completion of Activity Statements, the following items in the Range Statement must be assessed to be considered as having fulfilled some of the educational requirements for registration with the TPB:

• Legislative and regulatory requirements
• Payment options
• GST principles
• GST classifications

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that 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) may also be included.

Legislative and regulatory requirements  must include:

• BAS/IAS requirements including time requirements and cash versus accrual reporting requirements
• GST Act and related public rulings, determinations and regulations
• Income Tax Act, regulations rulings and determinations
• Privacy Act
• use of IT software and equipment.

Organisational and industry requirements  may include:

• business and performance plans
• computer system documentation
• industry codes of ethics
• industry codes of practice
• internal control guidelines
• operations manuals
• organisational policies and procedures
• management of more than one trading business under an Australian Business Number (ABN) umbrella

Payment options  must include:

• maintaining an estimate of amount payable on BAS and IAS
• Pay as you go instalments (PAYGI) and Pay as you go withholding (PAYGW)
• set up of a provision account

GST principles  must include:

• GST collected
• GST input tax credits
• net GST payable

GST classifications  must include:

• GST
• GST free
• input taxed
• no tax (not reportable)
• input taxed supply
• exports

Other payments  may include:

• Fringe Benefits Tax (FBT)
• Fuel Tax Credits (FTC)
• luxury car tax
• wine equalisation tax

Amounts withheld  may include:

• amounts withheld where no ABN is quoted
• other amounts withheld such as W2 and W3 on Activity Statements

Unit sector 

Bookkeeping

Competency field 

Co-requisite units