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Unit of competency details

FNSFLT204 - Develop knowledge of superannuation (Release 1)

Summary

Usage recommendation:
Superseded
Mapping:
MappingNotesDate
Supersedes and is equivalent to FNSFLT204A - Develop understanding of superannuationUpdated to meet Standards for Training Packages Title changed Minor edits to reflect AQF level 24/Mar/2015
Is superseded by and equivalent to FNSFLT214 - Develop knowledge of superannuation 01/Feb/2021

Releases:
ReleaseRelease date
1 1 (this release) 25/Mar/2015


Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080101 Accounting  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080101 Accounting  30/Jul/2015 
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Unit of competency

Modification History

Release 

Comments 

Release 1

This version first released with FNS Financial Services Training Package Version 1.0.

Application

This unit describes the skills and knowledge required to understand the role of superannuation and other longer-term investment devices, and to make effective and informed decisions about related products. It has wide application and may be used in workplaces, schools, adult and community learning organisations or registered training organisations to build the financial literacy of learners. The unit may also be used as part of pre-vocational or new apprenticeship programs, or as part of services provided by counselling or advisory organisations.

It applies to individuals who explore new ideas and techniques to build personal financial literacy knowledge.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Unit Sector

Financial literacy

Elements and Performance Criteria

ELEMENT 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify and discuss role of long-term versus short-term investments

1.1 Identify and explain role of savings and investments at different points of people’s life cycle

1.2 Identify and compare savings and investment patterns of Australia, population growth and ageing with other countries

1.3 Describe purpose and characteristics of a range of savings and investment vehicles used for short-term and long-term savings and investment

2. Describe the contemporary superannuation environment in Australia

2.1 Identify and explain purposes and benefits of superannuation as part of a long-term investment strategy to support people in retirement

2.2 Identify and discuss basic terminology used for customers of superannuation industry and characteristics of superannuation in Australia

2.3 Examine role of regulators and trustees in management of Australian superannuation industry

2.4 Identify and access sources for ongoing information about superannuation in Australia and discuss their uses

3. Explore characteristics and structures of superannuation funds

3.1 Identify and compare types of superannuation schemes and fund managers

3.2 Identify and describe common investment objectives and role of death benefits in superannuation schemes, and their related strategies

3.3 Describe role and nature of preserved and non-preserved components of superannuation funds

3.4 Identify common costs of administering and managing superannuation funds

3.5 Compare examples of cross-section of superannuation funds’ performance over time and discuss variables that contributed to performance

4. Foster active management of superannuation funds

4.1 Explain importance and means of checking superannuation statements for accuracy

4.2 Identify and apply techniques for analysing performance, rate of return, government taxes and other costs

4.3 Identify government regulated minimum age when superannuation benefits can be accessed and discuss regulation’s impact

4.4 Identify and discuss range of structures and techniques for use of superannuation funds on retirement

4.5 Identify and discuss mechanisms to gain information about a superannuation fund, track lost superannuation contributions or lodge complaints if concerns or discrepancies arise about individual’s superannuation fund

4.6 Develop questions on superannuation issues that may be put to employers and fund providers

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

Skill 

Performance Criteria 

Description 

Reading

1.1-1.3, 2.1-2.4, 3.1-3.5, 4.1-4.5

  • Identifies, reviews and compares written and numerical information from a range of sources to identify key details relevant to the activity

Writing

1.1-1.3, 2.1-2.3, 3.2-3.5, 4.1-4.6

  • Prepares written information and structures questions logically using correct terminology
  • Describes concepts accurately and in a format appropriate for the audience and purpose

Oral Communication

1.1-1.3, 2.1-2.3, 3.2-3.5, 4.1-4.5

  • Uses active listening and questioning to clarify and elicit information related to the topic or enquiry
  • Participates in verbal exchanges to share information

Numeracy

1.1-1.3, 2.1, 3.1, 3.3, 3.4, 3.5, 4.2

  • Performs a range of mathematical calculations to interpret patterns and trends, and to compare financial information

Navigate the world of work

1.1-1.3, 2.1-2.4, 3.1-3.5, 4.1-4.6

  • Identifies, confirms and understands regulatory requirements
  • Maintains up-to-date knowledge of superannuation issues required for own situation

Get the work done

1.1-1.3, 2.4, 3.5, 4.2

  • Uses digital systems and tools to conduct research and complete tasks

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 

Comments 

Equivalence status 

FNSFLT204 Develop knowledge of superannuation

FNSFLT204A Develop understanding of superannuation

Updated to meet Standards for Training Packages

Revised title

Minor edits to reflect AQF level

Equivalent unit

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe

 

Assessment requirements

Modification History

Release 

Comments 

Release 1

This version first released with FNS Financial Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

  • clearly explain the role of superannuation and other longer-term investment vehicles used in the community at different points of the life cycle
  • review and discuss varying types of investment vehicles
  • develop questions to put to fund managers that demonstrate knowledge necessary to actively manage a superannuation investment.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • identify and explain key consumer issues relating to superannuation information
  • identify savings and investment patterns at different life cycle stages
  • identify key characteristics of superannuation in Australia
  • describe different types of superannuation fund managers and types of investment strategies
  • list examples of short-term and long-term savings and investment vehicles
  • define common terms used in superannuation statements
  • list ways of using superannuation funds on retirement
  • list the key regulatory bodies and identify basic features of legislation relating to superannuation
  • briefly outline the roles and relationships between participants in the Australian financial services industry, including banks and other financial intermediaries.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial literacy field and include access to:

  • office equipment, technology, software and consumables
  • information about the current structures of Australia’s superannuation system and a wide range of superannuation schemes and products.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe