Application
This unit describes the skills and knowledge required to understand the role of taxation in the Australian economy, including why and how tax is levied and collected, types of taxes paid by business and individuals, and its impact on investment choices. It has wide application and may be used in workplaces, schools, adult and community learning organisations or registered training organisations to build the financial literacy of learners. The unit may also be used as part of pre-vocational or new apprenticeship programs, or as part of services provided by counselling or advisory organisations.
It applies to individuals who apply new ideas and knowledge to develop and maintain personal financial literacy skills.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Explain and discuss role of taxation in the Australian economy | 1.1 Identify and discuss purpose of taxation in the Australian economy at local, state and federal levels, and how this compares with other countries 1.2 Explain various ways and groups from whom tax is collected 1.3 Describe role of Australian Taxation Office 1.4 Explain what taxation revenue is used for and relate to wellbeing and lifestyle of Australian citizens |
2. Explain personal tax | 2.1 Identify and define key terminology used in personal taxation 2.2 Examine tax declaration forms, Tax File Number requirements and rates of personal tax 2.3 Describe how personal tax is assessed and how tax returns are completed and paid 2.4 Identify, access and discuss sources of ongoing information about personal tax in Australia |
3. Explain business tax | 3.1 Identify and define key terminology used in business taxation 3.2 Identify and describe different business structures and how this affects taxation 3.3 Describe how business tax is assessed and paid 3.4 Describe how superannuation contributions for employees are assessed and paid 3.5 Identify, access and discuss sources of ongoing information about business tax in Australia |
4. Discuss tax liability | 4.1 Identify and discuss how individuals can determine their tax liability 4.2 Describe how small business operators pay tax 4.3 Discuss underpayment or overpayment of tax and its implications |
Evidence of Performance
Evidence of the ability to:
clearly explain the role of taxation for individuals and small business in Australia
discuss taxation responsibilities and their impact on personal financial management
demonstrate knowledge to manage taxation liabilities.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
describe the purpose of taxation
list ways tax is collected
describe the role of the Australian Tax Office
identify what taxation revenue may be used to provide
define key terminology used in personal taxation
list sources of information about rates of personal taxation and ongoing information
describe ways for completing taxation returns
list and describe different types of business structures
describe how business tax is assessed
explain how individuals can determine their tax liability by assessing income and deductions
describe how small business operators pay tax
list issues relating to underpayment or overpayment of tax.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial literacy field and include access to the internet and current information about Australia’s taxation system.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1-1.4, 2.1-2.4, 3.1-3.5, 4.1-4.3 | Accesses, interprets and collates information from a range of sources and identifies key relevant information for the task |
Oral Communication | 1.1-1.4, 2.1, 2.3, 2.4, 3.1-3.5, 4.1-4.3 | Uses active listening and questioning to develop a clear understanding of topics and issues, and participates in verbal exchanges to share information |
Numeracy | 2.3, 3.3, 4.1 | Interprets financial information relating to taxation to determine how calculations are made |
Navigate the world of work | 1.1-1.3, 2.1-2.4, 3.1-3.5, 4.1-4.3 | Maintains up-to-date knowledge of taxation necessary for own situation |
Get the work done | 1.1-1.3, 2.1-2.4, 3.1-3.5, 4.1-4.3 | Plans and organises tasks according to defined requirements Uses digital systems and tools to source and analyse information |
Sectors
Financial literacy