Application
This unit has application to accountants and registered tax agents. |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Gather and verify data | 1.1. Current data on assessable income and allowable deductions are gathered from appropriate sources 1.2. Valuations are made, recorded and disclosed in accordance with business policies and procedures 1.3. Discrepancies, unusual features or queries are identified, resolved or referred to the appropriate authority 1.4. Accrued or prepaid income and expenditure is identified and adjustments to the value of assets and liabilities are recorded |
2. Calculate taxable income | 2.1. Liabilities for tax are calculated in accordance with current legislation and revenue gathering practices 2.2. Relevant source documentation and revenue documentation is identified and correctly interpreted 2.3. Tax returns, statements and claims take full advantage of available benefits and allowances in accordance with statutory requirements 2.4. Returns are prepared within established timelines |
3. Review compliance | 3.1. Relevant returns are submitted to the Australian Taxation Office (ATO) within stated deadlines 3.2. Current obligations are fulfilled and advice from taxation authorities followed and reported in accordance with statutory requirements 3.3. Statements give a clear indication of impact of taxation on individual 3.4. Tax office enquiries are responded to and income tax audit requirements met |
Required Skills
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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 |
Evidence Required
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 |
Range Statement
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. |
Sectors
Unit sector | Accounting |
Employability Skills
This unit contains employability skills. |
Licensing Information
Not applicable.