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 apply SIS preservation rules, ATO guidelines and legislation

determine client understating regarding self-managed superannuation funds

identify and explain relevant fund operational requirements and implication for contributions

identify and explain implications for fund income/assets and implications for benefits.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the 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 organisation financial records

access to organisational policies and procedures.

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:

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

observing processes and procedures in workplaces

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports

setting and reviewing workplace business simulations or scenarios.

Guidance information for assessment

Required skills

highly developed communication skills to:

liaise with others, share information, using questioning and active listening as required

describe taxation concepts and consequences to clients in plain, clear terms

use a range of interpersonal and communication skills to relate to a range of clients

use language and concepts appropriate to cultural differences

well-developed numeracy and IT skills to:

utilise computers and a range of computer software systems

perform basic calculations related to superannuation funds

access and update account records electronically

access and use appropriate software such as word processors, spreadsheets and databases

use internet information

highly developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate related information

organisational skills, including the ability to plan and sequence work

ability to research and comprehend self-managed superannuation fund operational guidelines

research and analysis for:

accessing, interpreting and managing complex information

researching and comprehending self-managed superannuation fund legislation

identifying relevant legislation and regulations relevant to each client

assessing the accuracy and relevance of information

self-management skills for complying with ethical, legal and procedural requirements

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

problem solving skills to address compliance and related issues

judgement skills for forming recommendations in operational situations

management skills for working effectively in a constantly changing environment

Required knowledge

application of Superannuation Industry (Supervision) (SIS) preservation rules

allocation of contributions to individual member accounts

basic features, structure and operation of self-managed superannuation funds

calculations and operation of member accounts in both accumulation and pension phases

establishing:

life insurance through a self-managed superannuation fund

the investment strategy for a self-managed superannuation fund

fund reserves and how to access self-managed superannuation funds and benefit payments issues

key features, characteristics and risks of different types of self-managed superannuation fund income streams

key issues to consider when evaluating self-managed superannuation funds

legislative requirements to maintain a self-managed superannuation fund

operations of trust deed and ongoing deed amendments

self-managed superannuation contribution rules, including in specie requirements

setting up an income stream (i.e. pension) from a self-managed superannuation fund (complying and non complying)

special self-managed superannuation fund investment strategies, including borrowing/lending restrictions

sole purpose test (appropriate and inappropriate self-managed superannuation fund investments)

steps required to establish a self-managed superannuation fund

treatment of business real estate property

winding up a self-managed superannuation fund/transfer of benefits

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.

Trustee duties and responsibilities may include:

corporate duties as a director of a superannuation fund

managing assets of the trust

SIS compliance

SIS covenant duties and responsibilities

trust law duties and responsibilities

trustee liabilities.

Key issues in evaluating self-managed Superannuation applications, include:

adequacy of initial funds to set up self-managed superannuation fund

business acumen skills

estate planning

retirement planning

role of the adviser

taxation implications

trusteeship legal requirements.

Associated risks may include:

becoming non-compliant

investment risk

legislative risk.

Sources of information may include:

Australian Securities and Investments Commission (ASIC)

Australian Taxation Office (ATO)

courts

dealers

existing or proposed trust deeds

fund managers

industry bodies

legislation

licensees

professional associations

regulation

relevant Commonwealth, State and Territory government organisations

self-managed superannuation fund specialists.

Legislation may include, as amended:

anti-discrimination legislation

Corporations Act

Family Law Legislation Amendment Superannuation Act

Financial Services Reform Act (FSRA)

Income Tax Assessment Act

industrial legislation

Insurance Act

Privacy Act

Retirement Savings Account Act

stamp duty legislation

Superannuation (Resolution of Complaints) Act

Superannuation (Unclaimed Moneys and Lost Members) Act

Superannuation Contributions Tax (Assessment and Collection) Act (surcharge)

Superannuation Guarantee (Administration) Act (SGAA)

Superannuation Industry (Supervision) Act (SIS)

Superannuation Industry (Supervision) Regulations

Trade Practices legislation

Trustee Acts or Trust Acts in each State and Territory

other relevant State, Territory and Commonwealth legislation.

Regulator/s may include:

ASIC

ATO

Australian Prudential Regulatory Authority (APRA).

Consequences of becoming non-compliant may include:

criminal prosecution

loss of concessional taxation benefits

reduction of fund assets

SIS penalties.

Operational of trust deed may include:

categorisation of contributions

guidelines on empowering trustees to appoint services providers

guidelines on empowering trustees to invest in assets

guidelines on empowering trustees to make other payments

guidelines on how benefits are paid

guidelines on who can be members

rules regarding the appointment of trustees

rules to operate the trust.

Investment restrictions may include:

acquiring assets from 'related parties' of the fund

borrowing by superannuation funds

in-house assets

lending to members and their relatives

making and maintaining investment on an 'arms length' basis.

Allowable contributions may include:

age limitations on contributions

business real property

Capital Gains Tax (CGT) exempt contributions

child contributions

in specie contributions

mandated employer contributions

member contributions

member voluntary contributions

spouse contributions.

Deduction may include:

accountants' fees

auditors' fees

financial planning fees

insurance

investment manager fees

legal fees.

Credit may include:

foreign taxation credits

franking credits.

Income streams may include:

allocated pensions/allocated annuities

annuities

life expected/life time

non-complying income streams

pensions.