Unit of competency Outline

Date retreived
23/07/2026 9:44 AM AWST

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Prepare income tax returns for individuals

Prepare income tax returns for individuals

Unit of competency
National Code
FNSACC502A
State Code
D4040
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
30/05/2011
Field of Education
080101 - Accounting
Original Release Date
30/05/2011
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.This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles that may be subject to licensing, legislative, regulatory or certification requirements. The Tax Practitioner's Board has set specific educational and experience requirements for registration of tax agents that must be met.
Notes
Elements and Performance Criteria
1. Gather and verify data
  • 1.1. Current data on assessable income and allowable deductions are gathered from appropriate sources
  • 1.2. Valuations are made, recorded and disclosed in accordance with business policies and procedures
  • 1.3. Discrepancies, unusual features or queries are identified, resolved or referred to the appropriate authority
  • 1.4. Accrued or prepaid income and expenditure is identified and adjustments to the value of assets and liabilities are recorded
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 statutory requirements
  • 2.4. Returns are prepared within established timelines
3. Review compliance
  • 3.1. Relevant returns are submitted to the Australian Taxation Office (ATO) within stated deadlines
  • 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 individual
  • 3.4. Tax office enquiries are responded to and income tax audit requirements met
electronic data entry
financial analysis assessments
financial management manuals
recording and filing systems
reporting requirements
standard financial analysis techniques.

absence of auditable trail
expenditure report mismatches
inappropriate authorisations
incorrect payments
incorrect report formats
variances from budget.

cash
loans, leases, debts
plant and equipment
property investments
shares, bonds, securities.

Capital Gains Tax (CGT)
individual income tax
partnership tax as it applies to accessible income for a partner.

billing schedules
fees and charges
investments
leasing
lending and financing
sales.

financial institution statements
invoices
order and supplier documentation
receipts
statutory declarations
taxation and statutory returns
vehicle log books.

bills
cash received
debit notes
declarations
invoices
sales proceeds.

asset usage reports
financial institution statements
financial statements
inventory usage reports
taxation declarations.

explanatory statements
lodgement dates
repayment schedules
supporting documentation.

delegated authorities
internal control procedures
reporting periods
taxation payment timings.

Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

interpret and comply with statutory requirements and Commonwealth taxation legislation
apply organisational policies and procedures and accounting principles and practices
gather and verify data to calculate taxable income and review for compliance.

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
access to internet.

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:

assessment requirements set by the Tax Practitioner's Board
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.

Guidance information for assessment
Replaces
State Code National Code Title Type
C9602 FNSACCT502B Prepare income tax returns Unit of competency
Replaced By
State Code National Code Title Type
WC231 FNSACC502B Prepare legally compliant tax returns for individuals Unit of competency
No information