ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

1. Develop a personal budget

1.1. Collect information to develop a personal budget.

1.2. Identify and select appropriate money saving strategies.

1.3. Investigate and assess services and personal credit options and conditions provided by financial institutions.

1.4. Develop the personal budget according to current income and personal expenditure.

1.5. Monitor expenditure against income.

1.6. Adjust the budget in response to changing financial circumstances.

2. Complete a bank reconciliation

2.1. Collect information to complete a bank reconciliation.

2.2. Develop and maintain a personal financial record keeping system.

2.3. Complete a bank reconciliation according to financial records.

3. Complete a tax return

3.1. Collect information to complete a tax return.

3.2. Identify and calculate allowable tax deductions.

3.3. Access appropriate income tax forms.

3.4. Complete a tax return according to relevant legislation.

3.5. Check discrepancies and confirm information is accurate and current.

3.6. File the tax return according to relevant legislation.

Required skills

planning and organising skills to develop a record-keeping system to monitor a personal budget

problem-solving skills to:

develop strategies to manage a personal budget

compare financial information and address discrepancies

literacy skills to:

read and interpret literature from financial institutions

record financial information and complete tax documentation

numeracy skills to compare income and expenditure

technology skills to complete tax return online.

Required knowledge

basic financial management and record keeping to enable development and management of a personal budget

benefits of financial goal setting and personal budgeting to enable effective management of personal finances

processes required to complete a bank reconciliation to enable accurate comparison of financial information

key elements of a reconciliation statement to enable interpretation of key financial information

obligations and responsibilities for paying tax

allowable tax deductions and types of records to be kept for taxation purposes to enable accurate completion of tax return.

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 following is essential:

carries out financial obligations and responsibilities to effectively plan and manage personal finances

seeks organisational advice or assistance to meet financial requirements and obligations including completing and filing a tax return

applies effective contingency techniques to deal with a problems and issues that may arise in the management of personal finances.

Context of and specific resources for assessment

Assessment must ensure preparation of bank reconciliations for a period of time to demonstrate competency and consistency of performance.

Assessment must also ensure access to:

resources such as information from financial institutions and taxation bodies and online facilities to complete real or simulated tax returns

documentation such as appropriate financial records and sample bank statements.

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:

observation of planning and management of a personal budget

observation of dealing with contingencies such as addressing discrepancies in the bank reconciliation process

oral and or written questioning to assess knowledge of the process for completing and filing a tax return

third-party reports from a supervisor detailing appropriate examples of financial management by the candidate.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

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.

Information may include:

current income

current expenditure

projection of income

projection of sporting and career commitments

different types of financial institutions and the services they provide

credit options

receipts

group certificate or group certificates

tax file number

tax deductions

other income

taxation advice

Personal budget may include:

living expenses

educational expenses.

Money saving strategies may include:

paying off credit cards on time

automatic transfer to savings account

looking for lower bank fees and charges.

Services may include:

investment

accounts.

financial advice.

Credit options may include:

credit cards

mortgages

personal loans

overdraft.

Credit conditions may include:

interest rates

flexibility

service

fees and charges

credibility.

Financial institutions may include:

banks

credit unions.

Bank reconciliation may include:

debits

credits

outstanding cheques

outstanding deposits

bank fees and charges.

Allowable tax deductions may include:

expenses that relate to work as an athlete

self-education expenses

interest and dividend

gift or donations to eligible organisations

cost of managing tax affairs

non employer sponsored superannuation contributions.

Income tax forms may include:

employment declaration

group certificate

tax file number request

tax return.

Relevant legislation may include:

taxation

privacy.