Unit of competency Outline
Date retreived
22/07/2026 5:58 PM AWST
22/07/2026 5:58 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Prepare legally compliant tax returns for individuals
Prepare legally compliant tax returns for individuals
Unit of competency
National Code
FNSACC502B
FNSACC502B
State Code
WC231
WC231
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
15/10/2014
Field of Education
080101 - Accounting
Original Release Date
15/10/2014
Nominal Hours
70
Description
This unit describes the performance outcomes, skills and knowledge required to prepare non-complex income tax returns for individuals in accordance with statutory requirements, and encompasses gathering and verifying data, calculating taxable income and reviewing compliance.Note: to provide tax practitioners services in Australia, tax agents must meet the requirements of, and be registered with, the Tax Practitioner’s Board.
Notes
Elements and Performance Criteria
1. Gather and verify data
- 1.1 Client taxation preparation requirements are determined
- 1.2 Current data on assessable income and allowable deductions are gathered from appropriate sources
- 1.3 Valuations are made, recorded and disclosed in accordance with business policies and procedures and legislation
- 1.4 Discrepancies, unusual features or queries are identified and resolved or referred to the appropriate authority
- 1.5 Accrued or prepaid income and expenditure is identified and adjustments to the value of assets and liabilities are recorded
- 1.6 Records and compliance requirements are identified and adhered to
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 legislation, regulation and Australian Taxation Office rulings
- 2.4 Returns are prepared within established timelines
- 2.5 Advice and guidance is sought to evaluate and moderate decision processes
- 2.6 Returns are discussed and agreed with clients and statutory requirements are confirmed
3. Review compliance
- 3.1 Relevant returns are submitted to the ATO within stated deadlines and in accordance with legislation
- 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 the client
- 3.4 Tax office enquiries are responded to and income tax audit requirements met
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
Legislation includes:
Australian commercial law
Australian taxation law
Australian superannuation legislation
Commonwealth and state consumer credit legislation
Commonwealth and state property law
Discrepancies may include:
absence of auditable trail
expenditure report mismatches
inappropriate authorisations
incorrect payments
incorrect report formats
variances from budget
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
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
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
Legislation includes:
Australian commercial law
Australian taxation law
Australian superannuation legislation
Commonwealth and state consumer credit legislation
Commonwealth and state property law
Discrepancies may include:
absence of auditable trail
expenditure report mismatches
inappropriate authorisations
incorrect payments
incorrect report formats
variances from budget
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
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
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:
demonstrate and apply knowledge of Australian taxation law in the preparation of tax returns for individuals
access, interpret and comply with information on relevant legislation, statutes, regulation and ATO rulings
provide taxation advice having regard to the facts and relevant law
develop organisational procedures to meet compliance requirements
apply organisational policies and procedures and accounting principles and practices
gather and verify data to calculate taxable income and review for compliance
prepare tax returns for individuals
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
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples 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 business taxation simulations
evaluating samples of work
accessing and validating third party reports
conducting a summative assessment of knowledge
Guidance information for assessment
Where assessment of this unit is designed to meet regulatory requirements, users should refer to the appropriate regulator or current guidelines published on the IBSA website www.ibsa.org.au (under training packages/financial services).
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
demonstrate and apply knowledge of Australian taxation law in the preparation of tax returns for individuals
access, interpret and comply with information on relevant legislation, statutes, regulation and ATO rulings
provide taxation advice having regard to the facts and relevant law
develop organisational procedures to meet compliance requirements
apply organisational policies and procedures and accounting principles and practices
gather and verify data to calculate taxable income and review for compliance
prepare tax returns for individuals
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
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples 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 business taxation simulations
evaluating samples of work
accessing and validating third party reports
conducting a summative assessment of knowledge
Guidance information for assessment
Where assessment of this unit is designed to meet regulatory requirements, users should refer to the appropriate regulator or current guidelines published on the IBSA website www.ibsa.org.au (under training packages/financial services).
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| D4040 | FNSACC502A | Prepare income tax returns for individuals | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ08 | FNSACC502 | Prepare tax documentation for individuals | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S718 | FNS50210 | Diploma of Accounting | Qualification |
| J515 | SIS50712 | Diploma of Sport and Recreation Management | Qualification |
| J514 | SIS50612 | Diploma of Sport Development | Qualification |