Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSACC502A Mapping and Delivery Guide
Prepare income tax returns for individuals

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSACC502A - Prepare income tax returns for individuals
Description This unit describes the performance outcomes, skills and knowledge required to prepare non-complex income tax returns for individuals in accordance with statutory requirements, and encompasses gathering and verifying data, calculating taxable income and reviewing compliance.This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles that may be subject to licensing, legislative, regulatory or certification requirements. The Tax Practitioner's Board has set specific educational and experience requirements for registration of tax agents that must be met.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application This unit has application to accountants and registered tax agents.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Gather and verify data
  • Current data on assessable income and allowable deductions are gathered from appropriate sources
  • Valuations are made, recorded and disclosed in accordance with business policies and procedures
  • Discrepancies, unusual features or queries are identified, resolved or referred to the appropriate authority
  • Accrued or prepaid income and expenditure is identified and adjustments to the value of assets and liabilities are recorded
       
Element: Calculate taxable income
  • Liabilities for tax are calculated in accordance with current legislation and revenue gathering practices
  • Relevant source documentation and revenue documentation is identified and correctly interpreted
  • Tax returns, statements and claims take full advantage of available benefits and allowances in accordance with statutory requirements
  • Returns are prepared within established timelines
       
Element: Review compliance
  • Relevant returns are submitted to the Australian Taxation Office (ATO) within stated deadlines
  • Current obligations are fulfilled and advice from taxation authorities followed and reported in accordance with statutory requirements
  • Statements give a clear indication of impact of taxation on individual
  • Tax office enquiries are responded to and income tax audit requirements met
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

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 ability to:

interpret and comply with statutory requirements and Commonwealth taxation legislation

apply organisational policies and procedures and accounting principles and practices

gather and verify data to calculate taxable income and review for compliance.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to internet.

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:

assessment requirements set by the Tax Practitioner's Board

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing business taxation simulations

evaluating samples of work.

Guidance information for assessment

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

communication skills to:

determine and confirm taxation preparation requirements and deal with clients, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

research skills such as:

accessing and managing financial services information

accessing and interpreting taxation legislation documentation

literacy skills for analysing information needs and preparing clear written advice for clients and taxation lodgement documentation

numeracy skills for financial calculations and analysis

IT skills for developing and using spreadsheets and databases and using internet information

learning skills to maintain knowledge of changes to taxation legislation and requirements

problem solving skills to identify any taxation issues that have the potential to impact on client services and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work and correctly schedule taxation lodgements

Required knowledge

ethical considerations for the handling of taxation returns including:

conflict of interests

confidentiality

disclosure requirements

income tax legislation

options, methods and practices for deductions, benefits and depreciation

Commonwealth government taxes and charges

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.

Business policies and procedures may include:

electronic data entry

financial analysis assessments

financial management manuals

recording and filing systems

reporting requirements

standard financial analysis techniques.

Discrepancies may include:

absence of auditable trail

expenditure report mismatches

inappropriate authorisations

incorrect payments

incorrect report formats

variances from budget.

Assets and liabilities may include:

cash

loans, leases, debts

plant and equipment

property investments

shares, bonds, securities.

Tax may include:

Capital Gains Tax (CGT)

individual income tax

partnership tax as it applies to accessible income for a partner.

Revenue gathering practices may include:

billing schedules

fees and charges

investments

leasing

lending and financing

sales.

Source documentation may include:

financial institution statements

invoices

order and supplier documentation

receipts

statutory declarations

taxation and statutory returns

vehicle log books.

Revenue documentation may include:

bills

cash received

debit notes

declarations

invoices

sales proceeds.

Returns and statements may include:

asset usage reports

financial institution statements

financial statements

inventory usage reports

taxation declarations.

Obligations may include:

explanatory statements

lodgement dates

repayment schedules

supporting documentation.

Statutory requirements may include:

delegated authorities

internal control procedures

reporting periods

taxation payment timings.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Current data on assessable income and allowable deductions are gathered from appropriate sources 
Valuations are made, recorded and disclosed in accordance with business policies and procedures 
Discrepancies, unusual features or queries are identified, resolved or referred to the appropriate authority 
Accrued or prepaid income and expenditure is identified and adjustments to the value of assets and liabilities are recorded 
Liabilities for tax are calculated in accordance with current legislation and revenue gathering practices 
Relevant source documentation and revenue documentation is identified and correctly interpreted 
Tax returns, statements and claims take full advantage of available benefits and allowances in accordance with statutory requirements 
Returns are prepared within established timelines 
Relevant returns are submitted to the Australian Taxation Office (ATO) within stated deadlines 
Current obligations are fulfilled and advice from taxation authorities followed and reported in accordance with statutory requirements 
Statements give a clear indication of impact of taxation on individual 
Tax office enquiries are responded to and income tax audit requirements met 

Forms

Assessment Cover Sheet

FNSACC502A - Prepare income tax returns for individuals
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSACC502A - Prepare income tax returns for individuals

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: