List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Advise trustee on fund taxation requirements and implications | 1.1 Outline importance of receiving complete advice on taxation requirements and implications for self-managed superannuation fund 1.2 Explain scope and authority of taxation information able to be provided to trustee 1.3 Recommend appropriate providers of specialist taxation advice 1.4 Identify sources of taxation information appropriate to self-managed superannuation funds 1.5 Advise trustee on taxation and other requirements that apply to self-managed superannuation fund structures, within scope of authority 1.6 Inform trustee of role of Australian Taxation Office (ATO) in regulating and supervising self-managed superannuation funds 1.7 Advise trustee of fund residency requirements for taxation purposes |
2. Advise trustee on implications for contributions made to fund | 2.1 Advise trustee of types and amounts of contributions, including in specie contributions, that self-managed superannuation fund can accept and investment restrictions 2.2 Advise trustee on taxation treatment of contributions to self-managed superannuation funds 2.3 Calculate and explain to trustee any relevant taxation concessions for contributor 2.4 Reinforce taxation impacts and risks regarding various types of contributions to trustee and confirm trustee understanding of risk 2.5 Advise trustee on treatment of rollovers |
3. Advise trustee on implications for fund's income and asset returns | 3.1 Advise trustee on treatment of reserves and residual fund assets, within scope of adviser authority 3.2 Advise trustee of taxation implications and benefits relating to investment earnings, including capital gains tax (accumulation and pensions), within scope of adviser authority 3.3 Explain goods and services tax (GST) and pay as you go (PAYG) implications for fund income, expenditure and benefit payments to trustee, within scope of adviser authority 3.4 Advise trustee of tax deductions available to self-managed superannuation fund, within scope of adviser authority 3.5 Identify fund credits, including franking and foreign taxation credits, for trustee, within scope of adviser authority |
4. Advise trustee on implications for benefits paid out of fund | 4.1 Advise trustee on taxation and social security treatment of income streams to members from self-managed superannuation fund, within scope of adviser authority 4.2 Inform trustee of tax treatment of death benefits (lump sum and income stream), and effect of binding or non-binding nominations, within scope of adviser authority 4.3 Advise trustee of taxation and social security treatment of any existing assets test exempt income streams, within scope of adviser authority |
Evidence of the ability to:
use effective communication and interpersonal skills to advise trustees on the potential taxation implications and other requirements to be considered for self-managed superannuation funds including:
contributions and benefits
fund income and assets
compliance with legislation and Australian Taxation Office (ATO) guidelines.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
interpret ATO requirements regarding self-managed superannuation funds
interpret and explain critical features of the key legislative requirements regarding self-managed superannuation funds and the Superannuation Industry (Supervision) (SIS) Act
define and describe capital gains treatment for investment earnings (accumulation and pensions)
define and describe fund residency and complying status for tax purposes
define and describe general taxation of investment earnings (accumulation and pension)
define and describe pay as you go (PAYG) and goods and services tax (GST) considerations relating to self-managed superannuation funds
identify tax deductions available to, and taxation of income streams from, self-managed superannuation funds
discuss taxation treatment of:
contributions to the fund
existing assets test exempt income streams (taxation and social security issues)
death benefits (lump sum and pension issues)
franking credits
reserves and residual fund assets
rollovers, including in specie issues.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the self-managed superannuation field of work and include access to:
organisational financial records
organisational policy and procedures
special purpose tools, equipment, materials and industry software packages.
Assessors must satisfy NVR/AQTF assessor requirements.