Unit of competency details
FNSACC512 - Prepare tax documentation for individuals (Release 1)
Summary
Usage recommendation:
Superseded
Releases:
| 1 1 (this release) |
13/Feb/2018 |
Companion volumes:
Unit of competency
Assessment requirements
Training packages that include this unit
Qualifications that include this unit
Skill sets that include this unit
Classifications
Classification history
| ASCED Module/Unit of Competency Field of Education Identifier | 080101 | Accounting | 13/Feb/2018 | |
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Unit of competency
Modification History
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Release
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Comments
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Release 1
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This version first released with FNS Financial Services Training Package Version 3.0.
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Application
This unit describes the skills and knowledge required to prepare non-complex income tax returns for individuals in line with statutory requirements. It encompasses gathering and verifying data, calculating taxable income, and reviewing compliance requirements.
It applies to individuals who use systematic approaches and follow specific guidelines to ensure compliance requirements are met.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. This unit is designed to meet the education requirements of the Tax Practitioner Board (TPB). Refer to the FNS Financial Services Training Package Companion Volume Implementation Guide or the relevant regulator for specific guidance on regulatory requirements.
Unit Sector
Accounting
Elements and Performance Criteria
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ELEMENT
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PERFORMANCE CRITERIA
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Elements describe the essential outcomes.
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Performance criteria describe the performance needed to demonstrate achievement of the element.
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1. Gather client income data and verify client, organisational and legislative requirements
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1.1 Consult with client to determine tax documentation preparation requirements
1.2 Conduct research to identify updates or additions to compliance requirements relevant to client circumstances, and establish recording and reporting requirements
1.3 Gather current data from authoritative sources, and identify and resolve outstanding information requirements through consultation with client
1.4 Identify assessable income and allowable deductions
1.5 Complete and record amounts according to organisational and legislative requirements
1.6 Identify discrepancies or unusual features and conduct research to resolve, or refer to designated authority
1.7 Identify accrued or prepaid income and expenditure, and record adjustments to value of assets and liabilities
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2. Identify, record and present client’s non-complex income tax documentation
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2.1 Calculate client’s tax obligations according to legislative requirements and industry-accepted information gathering practices
2.2 Prepare required documentation within established timeframes
2.3 Seek advice and guidance from specialists to evaluate and moderate decision processes as required
2.4 Discuss and confirm documentation with client to obtain client signature, authorisation and endorsement, ensuring legislative requirements are met
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3. Manage lodgement of client’s non-complex income tax documentation
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3.1 Submit required documentation to Australian Taxation Office (ATO) within established timeframes
3.2 Advise client of current tax obligations and information regarding expected future taxation authority advice
3.3 Respond to tax office enquiries and meet taxation audit requirements, when applicable, in timely manner
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Foundation Skills
This section describes those language, literacy and numeracy and employment skills that are essential to performance.
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Skill
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Description
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Reading
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- Researches and analyses financial information and data from a range of sources to identify key aspects related to non-complex income tax documentation requirements
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Writing
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- Records information and completes forms accurately using correct spelling, grammar, terminology, and conventions
- Uses clear language and concepts appropriate to audience to convey and clarify explicit information and requirements in written documentation
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Oral communication
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- Participates in verbal exchanges using active listening and questioning techniques to clarify information and confirm understanding
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Numeracy
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- Analyses financial data and performs mathematical calculations to complete requirements of non-complex income tax lodgement documentation
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Navigate the world of work
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- Identifies and follows legislative and regulatory requirements and organisational policies and procedures to meet expectations of clients and those associated with own role
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Interact with others
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- Selects and uses appropriate conventions and protocols when communicating with clients, colleagues and others to seek and provide information
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Get the work done
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- Plans, organises, schedules, and implements tasks according to organisational and legislative requirements, taking responsibility for compliance and client needs
- Makes critical and non-critical decisions in non-complex income tax situations, taking client and legislative requirements into consideration
- Identifies and responds to problems by systematically analysing required information, generating and evaluating options, and selecting the most appropriate option
- Uses digital systems and programs for planning, implementing, monitoring, reporting progress, and lodging income tax returns
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Unit Mapping Information
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Code and title
current version
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Code and title
previous version
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Comments
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Equivalence status
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FNSACC512 Prepare tax documentation for individuals (Release 1)
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FNSACC502 Prepare tax documentation for individuals (Release 1)
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Updates to performance criteria to clarify intent of unit.
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Equivalent unit.
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Links
Companion volumes are available from VETNet. - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe
Assessment requirements
Modification History
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Release
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Comments
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Release 1
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This version first released with FNS Financial Services Training Package Version 3.0.
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Performance Evidence
Evidence of the ability to:
- research, critically evaluate, and apply new or changed legislative requirements relating to the preparation of client non-complex income tax documentation
- identify client data required to calculate taxable income
- prepare client tax documentation that complies with:
- Australian taxation law and Australian Taxation Office (ATO) rulings
- accounting principles and practices
- organisational policies and procedures
- provide advice to client on tax documentation presented and obtain verification and approval.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Knowledge Evidence
The candidate must be able to demonstrate the following knowledge to effectively complete the tasks outlined in the elements and performance criteria of this unit, and to manage tasks and reasonably foreseeable contingencies in the context of the work role.
- Ethical considerations and legislative requirements required to prepare non-complex income tax documentation for individual taxpayers, including:
- conflict of interest
- responsibilities of tax agents, including code of professional conduct obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations (TASR)
- Key elements of Australian tax law as they relate to income tax documentation for individual taxpayers, including:
- rules and principles of Australian tax law, and the legal environment in which these principles operate
- basics of the legal system, constitutional considerations, and separation of powers that relate to preparing non-complex income tax documentation
- key aspects of the income tax law covering concepts of:
- residence and source
- related elements of international tax
- assessable income
- deductions, including general, specific, and decline in value
- tax rebates and offsets
- tax accounting
- income test definitions that include reportable superannuation and fringe benefits tax (FBT)
- key aspects of principles and application of capital gains tax (CGT), FBT and employment termination payment (ETP) rules for individual taxpayers
- basic concept of goods and services tax (GST)
- administrative aspects of the taxes identified above, including documentation, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties and audits
- specific and general anti-avoidance tax rules for individuals
- Key sources of information and data required to calculate taxable income
- Key features of organisational policies and procedures required to prepare non-complex income tax documentation for individual taxpayers
- Key accounting principles and practices required to prepare non-complex income tax documentation for individual taxpayers
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:
- office equipment, technology, software and consumables required to prepare non-complex income tax documentation for individuals, including:
- access to the internet
- digital systems and programs for preparing and lodging tax returns.
Assessors of this unit must satisfy the assessor requirements in applicable vocational education and training legislation, frameworks and/or standards.
This unit is designed to meet the education requirements of the Tax Practitioner Board (TPB). Where registration with the TPB is sought, assessment must reflect the conditions described by the regulator which stipulate that a significant amount (at least 40%) must be completed under some form of independent supervision. Where recognition of prior learning (RPL) is used, it must also meet the requirements of the Board’s policy on RPL.
Details of requirements can be accessed on the TPB website at: http://www.tpb.gov.au.
Links
Companion volumes are available from VETNet. - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe
