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

FNSSMS602 Mapping and Delivery Guide
Consider taxation requirements when advising in self-managed superannuation funds

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSSMS602 - Consider taxation requirements when advising in self-managed superannuation funds
Description
Employability Skills
Learning Outcomes and Application This unit covers the skills and knowledge required to provide advice to trustees (clients) on the potential taxation implications of particular strategies and solutions being considered for self-managed superannuation funds.It does not encompass taxation planning or the provision of taxation planning advice, but does include identifying and providing explanation of self-managed superannuation fund taxation requirements.It applies to individuals who use specialised industry knowledge to respond to enquiries and assist clients with complex needs and requirements.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the self-managed superannuation field of work and include access to:

organisational financial records

organisational policy and procedures

special purpose tools, equipment, materials and industry software packages.

Assessors must satisfy NVR/AQTF assessor requirements.
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: Advise trustee on fund taxation requirements and implications
  • Outline importance of receiving complete advice on taxation requirements and implications for self-managed superannuation fund
  • Explain scope and authority of taxation information able to be provided to trustee
  • Recommend appropriate providers of specialist taxation advice
  • Identify sources of taxation information appropriate to self-managed superannuation funds
  • Advise trustee on taxation and other requirements that apply to self-managed superannuation fund structures, within scope of authority
  • Inform trustee of role of Australian Taxation Office (ATO) in regulating and supervising self-managed superannuation funds
  • Advise trustee of fund residency requirements for taxation purposes
       
Element: Advise trustee on implications for contributions made to fund
  • Advise trustee of types and amounts of contributions, including in specie contributions, that self-managed superannuation fund can accept and investment restrictions
  • Advise trustee on taxation treatment of contributions to self-managed superannuation funds
  • Calculate and explain to trustee any relevant taxation concessions for contributor
  • Reinforce taxation impacts and risks regarding various types of contributions to trustee and confirm trustee understanding of risk
  • Advise trustee on treatment of rollovers
       
Element: 3. Advise trustee on implications for fund's income and asset returns
  • Advise trustee on treatment of reserves and residual fund assets, within scope of adviser authority
  • Advise trustee of taxation implications and benefits relating to investment earnings, including capital gains tax (accumulation and pensions), within scope of adviser authority
  • Explain goods and services tax (GST) and pay as you go (PAYG) implications for fund income, expenditure and benefit payments to trustee, within scope of adviser authority
  • Advise trustee of tax deductions available to self-managed superannuation fund, within scope of adviser authority
  • Identify fund credits, including franking and foreign taxation credits, for trustee, within scope of adviser authority
       
Element: Advise trustee on implications for benefits paid out of fund
  • Advise trustee on taxation and social security treatment of income streams to members from self-managed superannuation fund, within scope of adviser authority
  • Inform trustee of tax treatment of death benefits (lump sum and income stream), and effect of binding or non-binding nominations, within scope of adviser authority
  • Advise trustee of taxation and social security treatment of any existing assets test exempt income streams, within scope of adviser authority
       
Element: Advise trustee on implications for fund's income and asset returns
  • Advise trustee on treatment of reserves and residual fund assets, within scope of adviser authority
  • Advise trustee of taxation implications and benefits relating to investment earnings, including capital gains tax (accumulation and pensions), within scope of adviser authority
  • Explain goods and services tax (GST) and pay as you go (PAYG) implications for fund income, expenditure and benefit payments to trustee, within scope of adviser authority
  • Advise trustee of tax deductions available to self-managed superannuation fund, within scope of adviser authority
  • Identify fund credits, including franking and foreign taxation credits, for trustee, within scope of adviser authority
       


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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Advise trustee on fund taxation requirements and implications

1.1 Outline importance of receiving complete advice on taxation requirements and implications for self-managed superannuation fund

1.2 Explain scope and authority of taxation information able to be provided to trustee

1.3 Recommend appropriate providers of specialist taxation advice

1.4 Identify sources of taxation information appropriate to self-managed superannuation funds

1.5 Advise trustee on taxation and other requirements that apply to self-managed superannuation fund structures, within scope of authority

1.6 Inform trustee of role of Australian Taxation Office (ATO) in regulating and supervising self-managed superannuation funds

1.7 Advise trustee of fund residency requirements for taxation purposes

2. Advise trustee on implications for contributions made to fund

2.1 Advise trustee of types and amounts of contributions, including in specie contributions, that self-managed superannuation fund can accept and investment restrictions

2.2 Advise trustee on taxation treatment of contributions to self-managed superannuation funds

2.3 Calculate and explain to trustee any relevant taxation concessions for contributor

2.4 Reinforce taxation impacts and risks regarding various types of contributions to trustee and confirm trustee understanding of risk

2.5 Advise trustee on treatment of rollovers

3. Advise trustee on implications for fund's income and asset returns

3.1 Advise trustee on treatment of reserves and residual fund assets, within scope of adviser authority

3.2 Advise trustee of taxation implications and benefits relating to investment earnings, including capital gains tax (accumulation and pensions), within scope of adviser authority

3.3 Explain goods and services tax (GST) and pay as you go (PAYG) implications for fund income, expenditure and benefit payments to trustee, within scope of adviser authority

3.4 Advise trustee of tax deductions available to self-managed superannuation fund, within scope of adviser authority

3.5 Identify fund credits, including franking and foreign taxation credits, for trustee, within scope of adviser authority

4. Advise trustee on implications for benefits paid out of fund

4.1 Advise trustee on taxation and social security treatment of income streams to members from self-managed superannuation fund, within scope of adviser authority

4.2 Inform trustee of tax treatment of death benefits (lump sum and income stream), and effect of binding or non-binding nominations, within scope of adviser authority

4.3 Advise trustee of taxation and social security treatment of any existing assets test exempt income streams, within scope of adviser authority

Evidence of the ability to:

use effective communication and interpersonal skills to advise trustees on the potential taxation implications and other requirements to be considered for self-managed superannuation funds including:

contributions and benefits

fund income and assets

compliance with legislation and Australian Taxation Office (ATO) guidelines.

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

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

interpret ATO requirements regarding self-managed superannuation funds

interpret and explain critical features of the key legislative requirements regarding self-managed superannuation funds and the Superannuation Industry (Supervision) (SIS) Act

define and describe capital gains treatment for investment earnings (accumulation and pensions)

define and describe fund residency and complying status for tax purposes

define and describe general taxation of investment earnings (accumulation and pension)

define and describe pay as you go (PAYG) and goods and services tax (GST) considerations relating to self-managed superannuation funds

identify tax deductions available to, and taxation of income streams from, self-managed superannuation funds

discuss taxation treatment of:

contributions to the fund

existing assets test exempt income streams (taxation and social security issues)

death benefits (lump sum and pension issues)

franking credits

reserves and residual fund assets

rollovers, including in specie issues.

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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Advise trustee on fund taxation requirements and implications

1.1 Outline importance of receiving complete advice on taxation requirements and implications for self-managed superannuation fund

1.2 Explain scope and authority of taxation information able to be provided to trustee

1.3 Recommend appropriate providers of specialist taxation advice

1.4 Identify sources of taxation information appropriate to self-managed superannuation funds

1.5 Advise trustee on taxation and other requirements that apply to self-managed superannuation fund structures, within scope of authority

1.6 Inform trustee of role of Australian Taxation Office (ATO) in regulating and supervising self-managed superannuation funds

1.7 Advise trustee of fund residency requirements for taxation purposes

2. Advise trustee on implications for contributions made to fund

2.1 Advise trustee of types and amounts of contributions, including in specie contributions, that self-managed superannuation fund can accept and investment restrictions

2.2 Advise trustee on taxation treatment of contributions to self-managed superannuation funds

2.3 Calculate and explain to trustee any relevant taxation concessions for contributor

2.4 Reinforce taxation impacts and risks regarding various types of contributions to trustee and confirm trustee understanding of risk

2.5 Advise trustee on treatment of rollovers

3. Advise trustee on implications for fund's income and asset returns

3.1 Advise trustee on treatment of reserves and residual fund assets, within scope of adviser authority

3.2 Advise trustee of taxation implications and benefits relating to investment earnings, including capital gains tax (accumulation and pensions), within scope of adviser authority

3.3 Explain goods and services tax (GST) and pay as you go (PAYG) implications for fund income, expenditure and benefit payments to trustee, within scope of adviser authority

3.4 Advise trustee of tax deductions available to self-managed superannuation fund, within scope of adviser authority

3.5 Identify fund credits, including franking and foreign taxation credits, for trustee, within scope of adviser authority

4. Advise trustee on implications for benefits paid out of fund

4.1 Advise trustee on taxation and social security treatment of income streams to members from self-managed superannuation fund, within scope of adviser authority

4.2 Inform trustee of tax treatment of death benefits (lump sum and income stream), and effect of binding or non-binding nominations, within scope of adviser authority

4.3 Advise trustee of taxation and social security treatment of any existing assets test exempt income streams, within scope of adviser authority

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
Outline importance of receiving complete advice on taxation requirements and implications for self-managed superannuation fund 
Explain scope and authority of taxation information able to be provided to trustee 
Recommend appropriate providers of specialist taxation advice 
Identify sources of taxation information appropriate to self-managed superannuation funds 
Advise trustee on taxation and other requirements that apply to self-managed superannuation fund structures, within scope of authority 
Inform trustee of role of Australian Taxation Office (ATO) in regulating and supervising self-managed superannuation funds 
Advise trustee of fund residency requirements for taxation purposes 
Advise trustee of types and amounts of contributions, including in specie contributions, that self-managed superannuation fund can accept and investment restrictions 
Advise trustee on taxation treatment of contributions to self-managed superannuation funds 
Calculate and explain to trustee any relevant taxation concessions for contributor 
Reinforce taxation impacts and risks regarding various types of contributions to trustee and confirm trustee understanding of risk 
Advise trustee on treatment of rollovers 
Advise trustee on treatment of reserves and residual fund assets, within scope of adviser authority 
Advise trustee of taxation implications and benefits relating to investment earnings, including capital gains tax (accumulation and pensions), within scope of adviser authority 
Explain goods and services tax (GST) and pay as you go (PAYG) implications for fund income, expenditure and benefit payments to trustee, within scope of adviser authority 
Advise trustee of tax deductions available to self-managed superannuation fund, within scope of adviser authority 
Identify fund credits, including franking and foreign taxation credits, for trustee, within scope of adviser authority 
Advise trustee on taxation and social security treatment of income streams to members from self-managed superannuation fund, within scope of adviser authority 
Inform trustee of tax treatment of death benefits (lump sum and income stream), and effect of binding or non-binding nominations, within scope of adviser authority 
Advise trustee of taxation and social security treatment of any existing assets test exempt income streams, within scope of adviser authority 
Advise trustee on treatment of reserves and residual fund assets, within scope of adviser authority 
Advise trustee of taxation implications and benefits relating to investment earnings, including capital gains tax (accumulation and pensions), within scope of adviser authority 
Explain goods and services tax (GST) and pay as you go (PAYG) implications for fund income, expenditure and benefit payments to trustee, within scope of adviser authority 
Advise trustee of tax deductions available to self-managed superannuation fund, within scope of adviser authority 
Identify fund credits, including franking and foreign taxation credits, for trustee, within scope of adviser authority 

Forms

Assessment Cover Sheet

FNSSMS602 - Consider taxation requirements when advising in self-managed superannuation funds
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

FNSSMS602 - Consider taxation requirements when advising in self-managed superannuation funds

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: