This unit involves the skills and knowledge required to determine indirect taxes as part of customs broking activities.

It includes assessing the applicability of indirect taxes, determining tax exemptions and taxes to be paid, and documenting the results of all tax determinations.

This unit applies to individuals working as a customs broker. Work must be carried out in compliance with relevant legislation, and workplace policies and procedures.

Work is undertaken in a range of environments including small to large worksites in the customs broking, international freight forwarding, integrated express delivery and import/export industries.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1

Assess applicability of indirect taxes to goods, commodities and transactions

1.1

Applicability of indirect taxes to goods and commodities is analysed and documented

1.2

Allowable exemptions and specialised schemes relating to indirect taxes are researched for applicability to specific commodities and/or transactions

1.3

Allowable exemptions are applied to goods and commodities in accordance with relevant legislation

1.4

Accuracy of assessments is checked and verified

2

Calculate indirect taxes

2.1

Correct rate of indirect tax on goods and services is identified and applied in accordance with legislative requirements

2.2

Relevant information such as overseas freight and insurances is obtained as required

2.3

Data is input into software application systems for indirect tax calculation

3

Document indirect tax assessments

3.1

Indirect tax assessment results are recorded on appropriate documentation in accordance with legislative requirements

3.2

Rates and amounts of indirect taxes payable are checked for accuracy and are verified in accordance with workplace procedures

3.3

Completed documentation is stored, retained and provided to clients and other relevant personnel as required in accordance with current Australian Customs Act and relevant legislation and workplace procedures

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include:

calculating indirect taxes accurately

completing documentation related to work activities accurately

communicating and liaising effectively with others when applying goods and services tax (GST) and other indirect tax legislation as part of customs broking activities

determining applicability of GST and determining other indirect taxes

documenting indirect tax assessments

identifying and interpreting:

luxury car tax (LCT) problems that may occur when applying indirect taxes and appropriate action that can be taken to resolve these identified problems

non-taxable importations rules

wine equalisation tax (WET) rules

reading and interpreting:

indirect tax schedules

instructions, procedures and information relevant to applying indirect tax legislation, as they relate to customs broking activities.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of:

applicable legislation and regulations:

A New Tax System (Goods and Services Tax) Act 1999, customs and other indirect tax legislation as they relate to implementing indirect tax legislation as part of customs broking activities

current Australian Customs Act and related legislation

export/import/quarantine/bond requirements

other indirect taxation legislation

basic operation of the GST system

calculations of GST on taxable importations

delivered duty paid (DDP) transactions and impact on GST

documentation and/or software system requirements for applying GST and other indirect tax legislation as they relate to customs broking activities

key features of GST legislation

GST:

accounting requirements

collection and remittance

input-taxed supplies

registration process

system overview

GST-free goods and supplies

impact of GST on:

customs functions

importers and exporters

non-taxable importation

roles and responsibilities of relevant Australian Government departments such as customs and taxation, as they relate to GST

scope and operation of GST deferral scheme

sources of information to identify GST-free goods and exemption codes

sources of information on new developments in GST legislation as they relate to customs broking activities

special rules for GST requirements

transport and insurance costs attracting GST.

As a minimum, assessors must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations current at the time of assessment.

As a minimum, assessment must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations current at the time of assessment.

Assessment must occur in workplace operational situations where it is appropriate to do so. Where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Resources for assessment include:

a range of relevant exercises, case studies and/or simulations

applicable documentation including workplace procedures, regulations, codes of practice and operation manuals

relevant materials, tools, equipment and personal protective equipment currently used in industry.