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

FNSACC502B Mapping and Delivery Guide
Prepare legally compliant tax returns for individuals

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSACC502B - Prepare legally compliant 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.Note: to provide tax practitioners services in Australia, tax agents must meet the requirements of, and be registered with, the Tax Practitioner’s Board.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application This unit applies 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 Not applicable.
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
  • Client taxation preparation requirements are determined
  • 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 and legislation
  • Discrepancies, unusual features or queries are identified and 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
  • Records and compliance requirements are identified and adhered to
       
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 legislation, regulation and Australian Taxation Office rulings
  • Returns are prepared within established timelines
  • Advice and guidance is sought to evaluate and moderate decision processes
  • Returns are discussed and agreed with clients and statutory requirements are confirmed
       
Element: Review compliance
  • Relevant returns are submitted to the ATO within stated deadlines and in accordance with legislation
  • 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 the client
  • 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:

demonstrate and apply knowledge of Australian taxation law in the preparation of tax returns for individuals

access, interpret and comply with information on relevant legislation, statutes, regulation and ATO rulings

provide taxation advice having regard to the facts and relevant law

develop organisational procedures to meet compliance requirements

apply organisational policies and procedures and accounting principles and practices

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

prepare tax returns for individuals

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

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:

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

accessing and validating third party reports

conducting a summative assessment of knowledge

Guidance information for assessment

Where assessment of this unit is designed to meet regulatory requirements, users should refer to the appropriate regulator or current guidelines published on the IBSA website www.ibsa.org.au (under training packages/financial services).

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

liaise with others, share information, provide advice and guidance

use language and concepts appropriate to cultural differences

research skills to:

access and manage financial services

access and interpret taxation legislation, regulation and precedent

identify any taxation related matters that have the potential to impact on client services

identify client related transactions that are relevant to taxation matters

literacy skills to analyse information needs and prepare clear written advice, for clients and taxation lodgement documentation

numeracy skills to perform financial calculations and analysis

IT skills to develop and use spreadsheets and databases and using internet information

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

problem solving skills to:

apply statute, regulation and precedent to a client’s circumstances

develop options to resolve client related taxation matters when they arise

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

Required knowledge

ethical considerations relevant to the handling of taxation returns including:

conflict of interest

confidentiality

disclosure requirements

key elements of Australian taxation law, as it relates to taxation returns for individuals:

the rules and principles of Australian tax law including an understanding of the legal environment in which these principles operate

key aspects of the income tax law covering concepts of residence and source, related elements of international tax, assessable income, deductions (including general, specific and decline in value), tax rebates/offsets and tax accounting, income test (e.g. reportable superannuation and fringe benefits tax), and other reporting requirements

key aspects of taxes that extend the ordinary statutory income tax base including relevant principles and application of the capital gains tax and termination payment rules

goods and services tax

taxation of individuals

administrative aspects of the taxes identified above including returns, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties and audits

rules addressing specific and general anti tax avoidance for individuals

ethical and professional responsibilities of tax agents including obligations under the Tax Agent Services Act 2009 (TASA) and Tax Agent Services Regulations 2009 (TASR).

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

Legislation includes:

Australian commercial law

Australian taxation law

Australian superannuation legislation

Commonwealth and state consumer credit legislation

Commonwealth and state property law

Discrepancies may include:

absence of auditable trail

expenditure report mismatches

inappropriate authorisations

incorrect payments

incorrect report formats

variances from budget

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

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
Client taxation preparation requirements are determined 
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 and legislation 
Discrepancies, unusual features or queries are identified and 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 
Records and compliance requirements are identified and adhered to 
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 legislation, regulation and Australian Taxation Office rulings 
Returns are prepared within established timelines 
Advice and guidance is sought to evaluate and moderate decision processes 
Returns are discussed and agreed with clients and statutory requirements are confirmed 
Relevant returns are submitted to the ATO within stated deadlines and in accordance with legislation 
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 the client 
Tax office enquiries are responded to and income tax audit requirements met 

Forms

Assessment Cover Sheet

FNSACC502B - Prepare legally compliant 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

FNSACC502B - Prepare legally compliant 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: