Application
This unit applies to the role of an adviser regarding taxation of a self-managed superannuation fund and is limited by whether or not they are a registered tax agent. |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Identify and explain taxation requirements for fund structures and adviser role to the trustee | 1.1. The importance of receiving complete advice on taxation requirements and implications for fund and appropriate providers/referrals for specialist advice are identified 1.2. Scope and authority of taxation information able to be provided are explained to the client/trustee 1.3. Sources of taxation information appropriate to self-managed superannuation funds are identified 1.4. Taxation and other requirements that apply to trustee and self-managed superannuation fund structures within the scope of authority are explained to the client/trustee 1.5. Clients/trustees are informed of the role of the Australian Taxation Office (ATO) in regulating/supervising self-managed superannuation funds 1.6. Clients/trustees are informed of fund residency requirements for taxation purposes |
2. Identify and explain implications for contributions to the trustee within the scope of adviser authority | 2.1. Appropriate providers/referrals of taxation advice are identified and scope of taxation information on contributions able to be provided is explained 2.2. Clients/trustees are informed of the types of allowable contributions that the self-managed superannuation fund can claim and investment restrictions 2.3. Taxation treatment of contributions to self-managed superannuation funds is explained to the client/trustee 2.4. Taxation concessions for the contributor are identified and explained to the client/trustee 2.5. Taxation impacts and risks regarding the selection of various contributions are reinforced to client/trustee 2.6. Client/trustee is informed of the treatment of rollovers, including 'in specie contribution' issues 2.7. The client/trustee is informed to seek advice for higher level/specialist advice if required |
3. Identify and explain implications for fund income/assets to the trustee | 3.1. The importance of receiving complete advice on implications for fund income and assets is identified 3.2. Appropriate providers/referrals for this specialist advice are identified 3.3. The treatment of reserves and residual fund assets are explained to the client/trustee within scope of adviser authority 3.4. Client/trustee is informed of taxation implications and benefits relating to investment earnings including capital gains tax (accumulation and pensions) within scope of adviser authority 3.5. Goods and Services Tax (GST) and Pay As You Go (PAYG) implications for fund income, expenditure and benefit payments are explained to the client/trustee within scope of adviser authority 3.6. Fund tax deductions available to self-managed superannuation funds for clients/trustee are identified within scope of adviser authority 3.7. Fund credits for clients/trustee are identified within scope of adviser authority 3.8. Client/trustee is informed of the treatment of franking credits (accumulation and pension within scope of adviser authority 3.9. The impact of deductions on fund taxation outcome is explained to clients/trustee within scope of adviser authority |
4. Identify and explain implications for benefits to the trustee | 4.1. Treatments of lump sum Eligible Termination Payment (ETP) payments (tax calculations, tax reporting) considerations are explained to the client/trustee 4.2. The client/trustee is advised of the superannuation surcharge considerations and reporting issues 4.3. Taxation of income streams paid to the individual from the self-managed superannuation funds is explained to client/trustee within scope of adviser authority 4.4. The client/trustee is informed of the treatment of death benefits, and binding, non-binding or no beneficiary nominations (lump sum and pension issues) within scope of adviser authority 4.5. The client/trustee is made aware of treatment of complying and non-complying pensions (taxation and social security) issues within scope of adviser authority 4.6. The client/trustee is informed of the different Reasonable Benefit Limit (RBL) treatments and reporting issues pertaining to self-managed superannuation funds 4.7. The client/trustee is informed to seek advice for higher level/specialist advice if required |
Required Skills
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Required skills |
highly developed communication skills to: liaise with others, share information, using questioning and active listening as required use language and concepts appropriate to cultural differences well-developed numeracy and IT skills to: use a range of mathematical ideas and techniques related to taxation perform calculations related to taxation implications access and use appropriate software such as word processors, spreadsheets and databases use internet information well-developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate related information interpersonal skills to relate effectively within a team environment organisational skills, including the ability to plan and sequence work research and analysis for: accessing, interpreting and managing complex information comprehending self-managed superannuation fund SIS 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 compliance legislation and requirements problem solving skills to address compliance and taxation issues judgement skills for forming recommendations in operational situations |
Required knowledge |
ATO requirements regarding self-managed superannuation funds capital gains treatment for investment earnings (accumulation and pensions) fund residency and complying status for tax purposes general taxation of investment earnings (accumulation and pension) PAYG and GST considerations relating to self-managed superannuation funds Superannuation Industry (Supervision) (SIS) Act and key legislative requirements regarding self-managed superannuation funds superannuation surcharge considerations and reporting issues tax deductions available to, and taxation of income streams from self-managed superannuation funds taxation treatment of: self-managed superannuation funds contributions complying and non-complying pensions (taxation and social security issues) death benefits (lump sum and pension issues) franking credits (accumulation and pensions) reserves and residual fund assets rollovers, including in specie issues |
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 apply SIS legislation, ATO guidelines and legislation regarding self-managed superannuation funds explain fund taxation requirements and implications for contributions and benefits identify and explain implications for fund income and assets. |
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 organisation 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 |
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. | |
Sources of taxation information may include: | ATO Australian Securities and Investments Commission (ASIC) courts dealers existing or proposed trust deeds fund managers industry bodies legislation licensees professional associations regulations relevant Commonwealth, State and Territory Government organisations self-managed superannuation fund specialists. |
Taxation and other requirements 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 or Territory and Commonwealth legislation. |
Investment restrictions may include: | acquiring assets from 'related parties' parties of the fund borrowing by superannuation funds certain specified investments after 11 August 1999 existing investments at the 11 August 1999 in-house assets investments made between 11 August 1999 and December 1999 lending to members and their relatives making and maintaining investment on an arm's length basis related party of a fund. |
Risk may include: | divorce exceeding age-based limits exceeding RBL limit. |
Adviser may include: | all natural persons who provide self-managed superannuation fund advice to individuals or self-managed superannuation fund trustees any representative of a licensee employee or owner. |
Restriction and identification of allowable credits are provided in tax advice legislation and may include: | foreign taxation credits franking credits. |
Deductions may include: | accountants' fees auditors' fees financial planning fees insurance investment manager fees legal fees. |
Sectors
Unit sector | Self-managed superannuation |
Co-Requisites
Apply legislative and operational requirements to advising in self-managed superannuation funds | ||
Employability Skills
This unit contains employability skills. |
Licensing Information
Not applicable.