Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to understand the role of taxation in the Australian economy, including why and how tax is levied and collected, types of taxes paid by business and individuals and its impact on investment choices. No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement. |
Application of the Unit
Application of the unit |
This unit has wide application and may be used in workplaces, schools, adult and community learning organisations or Registered Training Organisations (RTOs) in order 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. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
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. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Identify and discuss the role of taxation in the Australian economy |
1.1. The purpose of taxation in the Australian economy at the local, State and federal level and how this compares with other countries is explored and discussed 1.2. The various ways that tax is collected and from who is analysed and discussed 1.3. The role of the Australian Taxation Office (ATO ) is identified and discussed 1.4. What taxation revenue is used for is explained and related to the wellbeing and lifestyle of Australian citizens |
2. Identify and discuss personal tax |
2.1. Key terminology used in personal taxation is identified and discussed 2.2. Tax declaration forms, Tax File Number (TFN) requirements and rates of personal tax are identified and analysed 2.3. How personal tax is assessed, tax returns completed and paid is considered and discussed 2.4. Sources of ongoing information about personal tax in Australia are identified, accessed and discussed |
3. Identify and discuss business tax |
3.1. Key terminology used in business taxation is identified and discussed 3.2. The structure of business and how this affects taxation is analysed and discussed 3.3. How business tax is assessed and paid is considered and discussed 3.4. How superannuation contributions for employees are assessed and paid is considered and discussed 3.5. Sources of ongoing information about business tax in Australia are identified, accessed and discussed |
4. Manage tax liability |
4.1. How individuals can determine their tax liability is identified and discussed 4.2. How small business operators pay tax is identified and discussed 4.3. Under or overpayment of tax and its implications is analysed and discussed |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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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. |
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The purpose of taxation includes but is not limited to: |
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Ways that tax is collected include: |
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The Australian Tax Office (ATO ) roles include: |
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Taxation revenue may be used to provide: |
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Terminology used in personal taxation may include: |
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Rates of personal tax and calculators can be accessed from: |
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Tax returns can be completed: |
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Sources of ongoing information may include: |
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The structure of business includes: |
NB Business' have an Australian Business Number (ABN) or and Australian Company Number (ACN) to identify them for taxation and other government reporting purposes. |
Business tax is assessed through: |
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Individuals can determine their tax liability by: |
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Small business operators pay tax by: |
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Under or overpayment of tax may involve: |
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Unit Sector(s)
Unit sector |
Financial literacy |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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