Unit of competency details

ELEMENT 

PERFORMANCE CRITERIA 

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.

1. Develop a personal budget 

1.1. Collect information  to develop a personal budget .

1.2. Identify and select appropriate money saving strategies .

1.3. Investigate and assess services  and personal credit options  and conditions  provided by financial institutions .

1.4. Develop the personal budget according to current income and personal expenditure.

1.5. Monitor expenditure against income.

1.6. Adjust the budget in response to changing financial circumstances.

2. Complete a bank reconciliation

2.1. Collect information to complete a bank reconciliation .

2.2. Develop and maintain a personal financial record keeping system.

2.3. Complete a bank reconciliation according to financial records.

3. Complete a tax return

3.1. Collect information to complete a tax return.

3.2. Identify and calculate allowable tax deductions .

3.3. Access appropriate income tax forms .

3.4. Complete a tax return according to relevant legislation .

3.5. Check discrepancies and confirm information is accurate and current.

3.6. File the tax return according to relevant legislation.

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

Required skills 

• planning and organising skills to develop a record-keeping system to monitor a personal budget
• problem-solving skills to:

• develop strategies to manage a personal budget
• compare financial information and address discrepancies

• literacy skills to:

• read and interpret literature from financial institutions
• record financial information and complete tax documentation

• numeracy skills to compare income and expenditure
• technology skills to complete tax return online.

Required knowledge 

• basic financial management and record keeping to enable development and management of a personal budget
• benefits of financial goal setting and personal budgeting to enable effective management of personal finances
• processes required to complete a bank reconciliation to enable accurate comparison of financial information
• key elements of a reconciliation statement to enable interpretation of key financial information
• obligations and responsibilities for paying tax
• allowable tax deductions and types of records  to be kept for taxation purposes to enable accurate completion of tax return.

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 following is essential:

• carries out financial obligations and responsibilities to effectively plan and manage personal finances
• seeks organisational advice or assistance to meet financial requirements and obligations including completing and filing a tax return
• applies effective contingency techniques to deal with a problems and issues that may arise in the management of personal finances.

Context of and specific resources for assessment 

Assessment must ensure preparation of bank reconciliations for a period of time to demonstrate competency and consistency of performance.

Assessment must also ensure access to:

• resources such as information from financial institutions and taxation bodies and online facilities to complete real or simulated tax returns
• documentation such as appropriate financial records and sample bank statements.

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:

• observation of planning and management of a personal budget
• observation of dealing with contingencies such as addressing discrepancies in the bank reconciliation process
• oral and or written questioning to assess knowledge of the process for completing and filing a tax return
• third-party reports from a supervisor detailing appropriate examples of financial management by the candidate.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

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.

Information  may include:

• current income
• current expenditure
• projection of income
• projection of sporting and career commitments
• different types of financial institutions and the services they provide
• credit options
• receipts
• group certificate or group certificates
• tax file number
• tax deductions
• other income
• taxation advice

Personal budget  may include:

• living expenses
• educational expenses.

Money saving strategies  may include:

• paying off credit cards on time
• automatic transfer to savings account
• looking for lower bank fees and charges.

Services  may include:

• investment
• accounts.
• financial advice.

Credit options  may include:

• credit cards
• mortgages
• personal loans
• overdraft.

Credit conditions  may include:

• interest rates
• flexibility
• service
• fees and charges
• credibility.

Financial institutions  may include:

• banks
• credit unions.

Bank reconciliation  may include:

• debits
• credits
• outstanding cheques
• outstanding deposits
• bank fees and charges.

Allowable tax deductions  may include:

• expenses that relate to work as an athlete
• self-education expenses
• interest and dividend
• gift or donations to eligible organisations
• cost of managing tax affairs
• non employer sponsored superannuation contributions.

Income tax forms  may include:

• employment declaration
• group certificate
• tax file number request
• tax return.

Relevant legislation  may include:

• taxation
• privacy.