Elements and Performance Criteria

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.
Savings and investment patterns are influenced by people's stage in the life cycle such as:
dual income families or well established employment and reducing family responsibilities and costs
early stages of family formation, with significant housing costs
empty-nesters in pre-retirement with more significant savings opportunities
retirees seeking to maximise income and, potentially, preserving capital
students working part-time
young people, new to the workforce, with limited income, high purchasing demands, potential Higher Education Contribution Scheme (HECS) debt.
A range of savings and investment vehicles used for short and long term savings and investment includes:
longer term:
superannuation
property
personal share portfolios
bonds
shorter term:
cash on deposit
fixed term cash management
money market investment account
Christmas club or other special event savings.
The range of characteristics of superannuation in Australia includes:
'salary sacrificing' and 'topping up' contributions
ages at which people may access their superannuation savings
available tax concessions for self-employed people that take out superannuation
compulsory employer contributions as a percentage of earnings paid by employers as the superannuation guarantee
contributions made on behalf of a spouse
role and responsibilities of scheme trustees
tax arrangements for superannuation accounts.
The regulators within the superannuation industry are:
Australian Prudential Regulation Authority (APRA)
Australian Securities and Investments Commission (ASIC)
Australian Taxation Office (ATO).
Superannuation schemes include:
accumulation funds.
The types of superannuation fund managers include:
employer or corporate funds
industry funds
retail funds
self-managed funds.
Investment strategies and choices include:
balanced
capital guaranteed
capital stable
growth.
Common items that will be found when checking superannuation Statements may include:
benefit details
general details including:
fund name
member name and date of birth
date the member joined the fund
confirmation tax file number received
summary of account details including:
opening balance
list of contributions
deductions including fees and withdrawals by the member
investment earnings
rebates
closing balance.
Structures and techniques for the utilisation of superannuation funds on retirement include:
a combination of the above
annuities
lump sum payment for further personal investment
superannuation funds may also be accessed early, under strict criteria, on 'compassionate grounds' which may include:
medical grounds
funeral and burial expenses
the forced sale of a home by a mortgagee
superannuation pensions.
Lost superannuation contributions occur when:
an employee changes job and the superannuation fund may lose track of the individual member. The ATO holds funds on behalf of lost superannuation members. Funds may be searched through the 'Lost Members Register'.
NB superannuation accounts can be tracked using 'Superseeker' and similar on-line tools.
Questions on superannuation issues for employer and fund providers may include:
what are the different employment options impacting on superannuation:
wage and salary employee
self employed
contractor
full-time, part-time and casual
multiple employers.

EVIDENCE GUIDE
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:
analyse and clearly explain the role of superannuation and other longer term investment vehicles used within the community at different points of the life cycle
analyse and critically evaluate varying types of investment vehicles
understand and apply the skills necessary to actively manage a superannuation investment.

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the range statement
access to and the use of a range of common office equipment, technology, software and consumables
access to information about the current structures of Australia's superannuation system, information about a wide range of superannuation schemes and products, software and other relevant resources.

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
verbal or written questioning on underpinning knowledge and skills
setting and reviewing simulations or scenarios
group discussion to determine and confirm understanding.

Guidance information for assessment