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Elements and Performance Criteria

1. Research tax requirements
   • 1.1 Identify the client's circumstances and tax (financial) advice services relevant to tax requirements
   • 1.2 Identify sources of tax information relevant to client's circumstances and tax (financial) advice services requirements
   • 1.3 Research relevant legislation, including Tax Agent Services Act 2009 and Tax Agent Services Regulations 2009, Australian Taxation Office (ATO) guidelines and other regulatory and ethical requirements relevant to the tax requirements of the client's circumstances and the tax (financial) advice services being provided
2. 2. Explain relevant tax requirements and adviser's scope of authority
   • 2.1 Identify legal, regulatory and ethical requirements that apply to the tax requirements relevant to the client's circumstances and tax (financial) advice services
   • Explain the scope and authority of providing tax (financial) advice services to the client
   • Explain to the client, within scope of authority, the tax requirements that apply to their circumstances and the tax (financial) advice services being provided
   • Advise the client to seek independent tax advice or specialist advice as required
3. Explain implications of tax requirements
   • 3.1 Analyse the implications of the tax requirements relevant to the client's circumstances and tax (financial) advice services, including how it applies to individuals or different legal entities
   • Explain to the client, within scope of authority, the implications of the tax requirements that apply to their circumstances and the tax (financial) advice services provided
4. Maintain knowledge of tax and tax administration requirements
   • 4.1 Identify sources of information for tax administration requirements, including assessments, amendments and objections, relevant to the client's circumstances and tax (financial) advice services
   • 4.2 Review client's circumstances and tax (financial) advice services provided and apply changes in tax or tax administration requirements, as necessary
   • Access and use systems for maintaining up-to-date knowledge about relevant tax and tax administration requirements
   • 4.4 Conduct research to identify updates, or additions to, tax and tax administration requirements relevant to client's circumstances and tax (financial) advice services provided
5. Explain relevant tax requirements and adviser's scope of authority
   • Identify legal, regulatory and ethical requirements that apply to the tax requirements relevant to the client's circumstances and tax (financial) advice services
   • Explain the scope and authority of providing tax (financial) advice services to the client
   • Explain to the client, within scope of authority, the tax requirements that apply to their circumstances and the tax (financial) advice services being provided
   • Advise the client to seek independent tax advice or specialist advice as required

Performance Evidence

Evidence of the ability to:

research, analyse and apply current relevant legislative requirements, Australian Taxation Office (ATO) guidelines, regulatory and ethical requirements on tax requirements, including tax administration, relevant to the client's circumstances and the tax (financial) advice services being provided

analyse the client circumstances and tax (financial) advice services requiring specialised independent tax advice

present implications of tax requirements to clients relevant to their circumstances and the tax (financial) advice services

access and use systems and relevant resources to maintain knowledge on tax and tax administration requirements.

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

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Knowledge Evidence

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

identify the following key issues, ethical considerations, industry obligations and legislative requirements when providing tax (financial) advice services which impacts on taxation matters:

conflicts of interest

responsibilities of tax (financial) advisers, including Code of Professional Conduct obligations, under the Tax Agent Services Act 2009 (TASA) and Tax Agent Services Regulations 2009 (TASR)

requirements and processes for clients who need specialised tax advice in capital gains tax and self managed superannuation funds

anti-avoidance provisions

explain critical and key elements of Australian taxation law, as it relates to tax of individuals, companies, trusts, partnerships and sole traders

describe key aspects of the income tax law covering concepts of :

residence and source

related elements of international tax

assessable income

deductions (general, specific and capital allowance and depreciation)

tax rebates and offsets (including imputation credits)

deferred and tax free trust distributions

income test definitions that include reportable superannuation and fringe benefits tax

describe key aspects of taxes that extend the ordinary statutory income tax base including relevant principles and application of the:

capital gains tax (CGT) including exemptions, disposals, discounts and consequences of CGT on death and CGT concessions for small business

fringe benefits tax including the concept of salary packaging

employee termination payments

employee share schemes

goods and services tax at a basic level

superannuation contributions, funds earnings and benefit payments

at a basic level, the administrative aspects of the taxes identified above including returns, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties, amendments and objections

outline key sources of tax information:

Australian Taxation Office

Australian Securities and Investments Commission

courts

securities dealers

existing or proposed trust deeds

fund managers

industry bodies

legislation

Australian Financial Services licensees

professional associations

regulations

relevant Commonwealth, State or Territory government organisations.

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