Application
The unit applies to positions and job roles that are responsible for preparing complex tax returns such as accountants and tax specialists. |
Prerequisites
Prepare income tax returns for individuals | ||
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Identify taxation requirements for complex lodgements and returns | 1.1. Organisational structure of the taxation entity is identified 1.2. Taxation parameters of the organisation are determined 1.3. Lodgement schedule requirements are established |
2. Gather and analyse taxation related data | 2.1. Accounting reports relevant to taxation requirements are identified and collected 2.2. Accounting information is analysed to determine relevant taxation elements |
3. Process data and prepare tax returns and lodgements | 3.1. Data is processed to comply with the relevant taxation format 3.2. Returns and lodgements are prepared in accordance with Australian Taxation Office (ATO) requirements |
4. Review taxation lodgement compliance | 4.1. Lodgements and returns are submitted for authorisation by an approved person within the stated deadlines 4.2. Taxation preparation procedures are reviewed to determine their efficiency and effectiveness 4.3. Recommendations arising from the taxation lodgement review are made to enable more efficient organisational structures and procedures for taxation purposes 4.4. Tax office enquiries are responded to and taxation audit requirements met |
Required Skills
|
Required skills |
well-developed 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 highly developed research skills such as: accessing and managing complex financial services information accessing and interpreting complex taxation legislation documentation literacy skills for analysing information needs and preparing clear written advice for clients and taxation lodgement documentation well-developed numeracy skills for financial calculations and analysis IT skills for developing and using integrated financial systems, spreadsheets and databases and using internet information learning skills to maintain knowledge of changes to taxation legislation and requirements high level 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 |
detailed knowledge of formats required for submission of statutory returns ethical considerations for the handling of returns such as: conflict of interests confidentiality disclosure requirements financial legislation such as: taxable transactions reporting requirements income tax legislation methods and principles of accrual accounting options, methods and practices for deductions, benefits and depreciation principles of internal control including statutory requirements principles of valuation and common methods of depreciation range of acceptable practices required to obtain deductions under relevant tax legislation such as: Capital Gains Tax (CGT) income tax State and 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: access, interpret and comply with ATO requirements assess organisational structures and identify taxation requirements for complex lodgements and returns gather and analyse complex taxation related data, process and prepare tax returns and lodgements review taxation lodgement 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 an integrated financial software system and data |
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 assessment requirements set by the Tax Practitioner's Board 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. | |
Organisational structures may include: | companies non-complex superannuation funds partnerships sole traders trusts. |
Taxation parameters may include: | cash or non-cash accounting lodgement schedules tables, calculations and schedules tax rates. |
Lodgement schedules may include: | Fringe Benefits Tax (FBT) fuel tax credits Goods and Services Tax (GST) instalments Luxury Car Tax Pay-As-You-Go (PAYG) tax withheld PAYG income tax instalments payroll tax wine equalisation tax withholdings. |
Accounting reports relevant to taxation requirements may include: | capital expenditure cash flow statements depreciation schedules financial expenses payroll statement of financial performance statement of financial position. |
Returns and lodgements may include: | annual returns Business Activity Statement (BAS) Fringe Benefits Tax (FBT) payroll tax |
Sectors
Unit sector | Accounting |
Employability Skills
This unit contains employability skills. |
Licensing Information
Not applicable.