Unit of competency Outline
Date retreived
22/07/2026 4:21 AM AWST
22/07/2026 4:21 AM 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.
Apply taxation requirements when advising in self-managed superannuation funds
Apply taxation requirements when advising in self-managed superannuation funds
Unit of competency
National Code
FNSSMS602A
FNSSMS602A
State Code
D4333
D4333
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
31/07/2014
Field of Education
081105 - Investment And Securities
Original Release Date
31/07/2014
Nominal Hours
80
Description
This unit covers the skills and knowledge required to apply taxation requirements when advising clients/trustees in self-managed superannuation funds. It does not encompass taxation planning but does encompass identifying and providing explanation of self-managed superannuation fund taxation requirements, with specific relation to investment product decisions within the fund.Importantly, this unit is not about the provision of taxation planning advice. Instead it is limited to advising on the potential taxation implications of particular products being considered for the fund.This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).
Notes
Elements and 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
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.
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.
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:
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
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
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUT25 | FNSSMS602 | Consider taxation requirements when advising in self-managed superannuation funds | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| J604 | FNS60513 | Advanced Diploma of Superannuation | Qualification |