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Copyright information Disclaimer Not legal or financial advice The information and materials in this resource have been provided by ASIC to assist your financial literacy training. It is not and should not be regarded as legal or financial advice. You should seek your own professional advice where appropriate. Whilst every effort is made to ensure the accuracy of the information and materials in this resource, ASIC does not warrant the accuracy, completeness and currency of all the information provided.

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Printed April 2015

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Table of contents About ASIC’s Be MoneySmart ................................................................................................................ 4

Overview .............................................................................................................................................. 4

Purpose of the workbook ................................................................................................................. 4

Audience .......................................................................................................................................... 4

Unit of competency supported ......................................................................................................... 4

Assessment ..................................................................................................................................... 5

Recognition of prior learning (RPL) ................................................................................................. 5

Student resources required for this module ..................................................................................... 5

Module 2: Personal tax ........................................................................................................................... 6

Assessment activity 1a: Storing your receipts ..................................................................................... 6

Assessment activity 1b: Understanding receipts ................................................................................. 7

Assessment activity 2a: What is your assessable income? ................................................................ 8

Assessment activity 2b: What are your allowable deductions? ........................................................... 9

Assessment activity 3: Lodging your tax return ................................................................................. 10

Assessment activity 4: Key terms and definitions ............................................................................. 11

Assessment activities summary ............................................................................................................ 13

Trainer/assessor templates ................................................................................................................... 14

Competency record ........................................................................................................................... 14

Assessment record sheet .................................................................................................................. 14

Supervisor/third party declaration ...................................................................................................... 20

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About ASIC’s Be MoneySmart

Overview ASIC’s Be MoneySmart resource has five modules to help people develop the skills, knowledge and behaviours required to effectively manage their own personal finances.

Module 1 – Saving, budgeting and spending

Module 2 – Personal tax

Module 3 – Superannuation

Module 4 – Debt management

Module 5 – Insurance

Each module comprises an online resource featuring the real-life stories of people who are working through the challenges of managing their finances. A Trainer/Assessor Guide and Student Workbooks support the modules.

You should refer to the copies of ASIC’s Be MoneySmart online modules provided by your training organisation, or alternatively they can be found on ASIC's MoneySmart website at moneysmart.gov.au/teaching.

Purpose of the workbook

This workbook is designed to be used in conjunction with ASIC’s Be MoneySmart online modules. A teacher, trainer or workplace assessor can assess the completed activities.

Audience

These materials are designed for use by registered training organisations (RTOs) for vocational education and training (VET) delivery and assessment. They may be used as part of an Australian Apprenticeship, pre-apprenticeship or a pre-vocational program. However, they may also be used in workplaces, schools, adult and community learning organisations or even as an adjunct to the services provided by counselling and advisory organisations.

Unit of competency supported

These materials support the Be MoneySmart (FNSFLT301) unit of competency from the Financial Services Training Package (FNS). This unit describes the performance outcomes, skills and knowledge required to develop, maintain and enhance understanding of personal finance matters, including taxation, superannuation and insurance.

The Be MoneySmart unit is an elective unit within the Certificate III in Financial Services Training Package and can be imported for use in other training qualifications.

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

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Assessment

The assessment activities in this workbook relate to competency standards and are aligned with the Financial Services Training Package (FNS) according to information provided by the official National Register of Information on Training Packages, training.gov.au (TGA).

This workbook provides activities and advice to enable the student to supply the trainer/assessor with the evidence required to demonstrate competency in Be MoneySmart (FNSFLT301), including the ability to:

demonstrate knowledge of personal financial matters

set personal financial goals and access opportunities for mentoring or advice on them

access information to build on and maintain knowledge of factors affecting personal finances.

Once the student has completed the module and this workbook, they will need to arrange to complete the oral assessment questions.

Templates for the trainer/assessor and the student to sign are at the end of this workbook.

Recognition of prior learning (RPL)

Students can use the assessment activities in this workbook to identify their current competency and as evidence to support formal recognition of prior learning (RPL). Students might already have some or all of the skills required for this unit. If students believe they can demonstrate these skills, they should speak with their trainer/assessor about applying for skills recognition.

Student resources required for this module

Student Workbook

Computer and link to online module

ATO website ato.gov.au

Calculator

Work-related receipts

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Module 2: Personal tax Time: 1 hour online and 2 hours Student Workbook

Watch the videos at screens 2 to 4.

Assessment activity 1a: Storing your receipts

It is important to keep your receipts for all your deductions, including education- and work-related expenses, as well as any other expenses that you may be able to claim.

Just like Sam learnt in the online module, if you cannot prove you’ve spent it, you cannot claim it. Therefore, it is important to store your receipts in a safe place.

In the box below, place a photo of how you currently store your receipts, or describe it in writing. If you do not have a system for receipt storage, write down some ideas that would work best for you. Explain to your trainer/assessor why you have chosen this method of receipt storage.

Receipt storage system

Notes

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Assessment activity 1b: Understanding receipts

Watch the videos at screens 2 to 4 again.

In addition to storing your receipts, it is important that you understand the key information that a receipt should contain in order for you to use it as evidence for your tax return.

Using an actual receipt from an expense you incurred in order to earn your income, answer the following questions.

Question Your answer

What is this receipt for and how does it relate to earning your income?

What is the crucial information contained in the receipt to allow you to use it as evidence for your tax return?

How long must you keep this receipt for?

What might happen if you don’t keep your receipts?

What is not considered a receipt or cannot be substituted for a receipt?

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Assessment activity 2a: What is your assessable income?

Watch the videos at screens 5 and 6.

Assessable income is income on which tax must be paid.

In the table below, under the column ‘Assessable’, place a tick [] next to the items that will form part of your assessable income. Place a cross [X] next to the items that will not form part of your assessable income.

Item Assessable

Salary or wages

Tips or bonuses

Travel allowance

Tool allowance

Site allowance

Clothing allowance

Meal allowance

Gambling winnings (Lotto, horseracing, poker machines)

Money from parents

Youth Allowance, ABSTUDY or Austudy

Small gifts

Child support

Government contributions to your super account

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Assessment activity 2b: What are your allowable deductions?

Watch the videos at screen 7.

You may be able to reduce the amount of tax you pay if you are entitled to any tax deductions.

In the table below, under the column ‘Is it an allowable deduction?’, write ‘yes’, ‘no’ or ‘maybe’ next to each item in the list.

Under the column ‘Will you be claiming this deduction?’, indicate which items you intend to claim by writing ‘yes’ or ‘no’ next to each item in the list.

Using the receipts you have kept from expenses incurred in order to earn your income, under the column ‘Amount ($)’, write down the amounts or provide an estimate of costs next to each item.

As discussed in Assessment activity 1a, you will need to keep all receipts for any items you wish to claim as a deduction in your tax return.

Item Is it an allowable deduction?

Will you be claiming this deduction?

Amount ($)

Vehicle expenses directly connected with work

Bus fare to get to work

Clothing expenses

Meal expenses (with a meal allowance)

Meal expenses (without a meal allowance)

Tool expenses (with a tool allowance)

Tool expenses (without a tool allowance)

Paying your accountant (in the year the costs were incurred)

Union fees

Charitable donations

Personal phone calls while at work

Self-education expenses

Home office expenses

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Assessment activity 3: Lodging your tax return

Watch the videos at screen 8.

Go to the ATO website at ato.gov.au and check the details for lodging your tax online. Using what you learn from the website and this module, write some notes that you can use for the next time you lodge your tax. Include the following details.

List the URL to access the software that will enable you to lodge your tax return online.

Will other members of the household be able to use the same copy of the software?

What you will need before you can lodge your tax return.

Notes

Tip:

Lodging your tax return

There are different options for lodging a tax return. You can lodge your tax return online through the ATO website. Or you can lodge your tax return through a registered tax agent who you can find through the Tax Practitioners Board website at tpb.gov.au.

The rules governing personal taxation can be found in the relevant Income Tax Assessment Acts and the Taxation Administration Acts.

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Assessment activity 4: Key terms and definitions

Watch the videos at screen 9.

If you earn money from your work or from investments, you will usually pay tax on that money. It is important for you to know some key terms and definitions to understand how your tax is calculated and to help you work out how much tax you should pay.

Draw a line between the key term and its matching definition below.

Key terms

Payment summary

Assessable income

Tax-free threshold

Tax file number

Allowances

Allowable deductions

Taxable income

Tax offset

Tax return

Definitions

The amount of money you can earn before you are required to pay income tax

Expenses that you can claim to reduce your assessable income such as work-related expenses, donations and tax return preparation

An ATO form that you fill in to state your income so the ATO can work out how much tax is payable

A benefit you receive from your employer related to your work, such as for tools and/or clothing

A reduction in the amount of tax you must pay, worked out after tax is calculated, e.g. for low-income earners

Income before any allowable deductions – examples include wages, employment bonuses, government income support, work-related allowances and bank interest

A statement from your employer showing the income you received and total amount of tax withheld for the financial year

A unique number issued to you by the ATO to identify your Australian tax dealings

Assessable income minus allowable deductions

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Tip:

Applying for your tax file number (TFN)

Australia Post

If you are able to attend an interview at a participating Australia Post retail outlet, you can apply for a TFN on the web at ato.gov.au/TFN apply. Otherwise, you will need to complete the paper application form ‘Tax file number – application or enquiry for individuals form (NAT 1432)’ and provide the necessary proof of identity documents.

Paper application

Once you have completed your application, you can send your TFN application and certified copies of your identification documents to the address listed on the form. Don’t mail your original identification documents to us – documents you mail to us may not be returned to you. Alternatively, you can take your application form and your original proof of identity documents to your nearest ATO shopfront (phone on 13 28 61 between 8.00 am and 6.00 pm, Monday to Friday, to make an appointment). A tax officer will check your original proof of identity documents and hand them back to you.

Other agencies

Alternatively, you can apply for a TFN through the Department of Human Services (Centrelink) if you are:

applying for Austudy

applying for ABSTUDY

receiving certain benefits

receiving an income support payment.

When you can expect your TFN

You will receive your TFN within28 days after the ATO receives your completed application and you have provided the required proof of identity documents. The ATO will forward your TFN to the postal address on your application.

For more information about applying for a TFN, go to ato.gov.au/tfn

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Assessment activities summary

Comments

Trainers or assessors should use this template to record details of any issues/feedback they wish to provide to the student in relation to their responses to the assessment activities. Alternatively they can record feedback next to the appropriate activity in the body of the Student Workbook.

I declare that completion of the assessment activities in this Student Workbook is my own work.*

* Students need to arrange for this Student Workbook to be submitted to their trainer/assessor for signing.

........................................................ ........................................................ ...................

Student name Student signature Date

........................................................ ........................................................ ...................

Trainer/assessor name Trainer/assessor signature Date

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Trainer/assessor templates

Competency record After assessment the competency record should be completed and signed by the student, trainer/assessor and the supervisor. If competency is not achieved at the first attempt, strategies to address gaps in performance need to be identified and a time for reassessment arranged.

Assessment record sheet FNSFLT301 Be MoneySmart

Element Performance criteria Evidence provided/ observed/context

Initial and date

1. Demonstrate an understanding of personal financial matters

1.1 Determine how career choice, education and skills affect income and goal attainment

Module 1: A3, Q2

1.2 Identify short- and long-term financial goals

Module 1: A3, Q2, Q6

1.3 Identify tax matters relating to personal income

Module 2: A1a, A1b, A2a, A2b, A3, Q1, Q2, Q3, Q4, Q5, Q6, Q7

1.4 Evaluate impact of consumer and financial behaviour on personal spending

Module 1: A1, A2, Q5 Module 4: A2b

1.5 Evaluate how insurance and other risk-management strategies protect against financial loss

Module 5: A1a, A1b, A2a, A2b, A2c, A3, Q1, Q2, Q3, Q4, Q5, Q6

1.6 Identify the components of superannuation relevant to individual income earners

Module 3: A1, A2, A3a, A3b, A4a, A4b, A4c, A5, Q1, Q2, Q3, Q4, Q5, Q6

2. Manage personal finances

2.1 Compare the benefits and costs of alternatives in spending decisions

Module 4: A1, A2a, A4, Q3, Q4

2.2 Identify the purpose of planning personal finances

Module 1: A4a, A5, Q3, Q4

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Element Performance criteria Evidence provided/ observed/context

Initial and date

2.3 Make personal financial choices based on logical decision-making

Module 1: A4a, A5, A6, Q4 Module 3: Q2 Module 4: A2a, A2b, A4, A5

2.4 Evaluate the consequences of personal financial decisions, including contracts

Module 4: A2a, A4, Q2, Q4

2.5 Develop methods and systems (including electronic) to stay in control of personal cash flow, spending and use of debt

Module 1: A4a, A5, Q1 Module 2: A1a Module 4: A5, Q5

3. Build knowledge of personal financial matters

3.1 Explore and evaluate factors that affect personal credit worthiness

Module 4: A2b, A3a, Q1

3.2 Seek advice from a specialist or mentor where required

Module 1: A1, Q5 Module 2: A1b, A2b, A3

3.3 Develop systems for maintaining up-to-date knowledge about personal finances and career opportunities to achieve goals

Module 1: Q5 Module 3: Q5

3.4 Identify reliable sources of ongoing information relevant to personal career and financial goals

Module 1: Q5 Module 4: A5

Critical aspects for assessment Evidence provided/ observed/context

Initial and date

Evidence of the ability to demonstrate knowledge of personal financial matters

Module 1: A1, A2, A4a, A4b Module 2: A2a, A2b Module 3: A3a, A4 Module 4: A4, A5, OA Module 5: A1a, A1b, A3

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Critical aspects for assessment Evidence provided/ observed/context

Initial and date

Evidence of the ability to set personal financial goals and access opportunities for mentoring or advice on them

Module 1: A3, Q2, Q6 Module 3: A1

Evidence of the ability to access information to build on and maintain knowledge of factors affecting personal finances

Module 1: A4a, A5, A6, Q5 Module 2: A3, A4 Module 3: A2, A3a, A3b, A4a, A4b, A5, Q5 Module 4: A1, A2a, A2b, A3a, A3b, A5 Module 5: A1a, A2a, A2b, A2c, A3

Required skills Evidence provided/ observed/context

Initial and date

Numeracy and technology skills to:

Calculate interest and loan repayments and surplus or deficit funds

Module 4: A1, A2b, A3a

Use a calculator, budget and loan calculator tools

Module 1: A4a, A5

Module 2: A2b, Q6, Q7

Module 3: A3a, A3b, Q6

Module 4: A1, A2a, A2b, A3a

Module 5: A2a, A2b

Use internet information Module 1: A4a, A5, A6 Module 2: A3, A4 Module 3: A2, A3a, A3b, A4a, A4b, A5, Q5 Module 4: A1, A2a, A2b, A3a, A3b, A5 Module 5: A1a, A2a, A2b, A2c, A3

Implement safe e-security practices for online banking and transactions

Module 1: A5

Self-management skills to:

Manage cash flow to pay bills on time Module 1: A2, A4a, A4b

Develop and use a budget to control income and expenses

Module 1: A4a

Create a savings and spending plan Module 1: A4a, A5, A6

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Required skills Evidence provided/ observed/context

Initial and date

to achieve financial goals Module 4: A2b

Learning skills to maintain knowledge of budgeting and saving techniques

Module 1: A4a, A5, A6 Module 4: A2b

Required knowledge Evidence provided/ observed/context

Initial and date

Debt management:

Responsible use of credit Module 4: A2a, A3a, Q3

Advantages of debit cards Module 1: Q1 Module 4: A2a, A2b, Q5

Consequences of debt default Module 4: A3a, A5, Q4

Attitude towards credit and spending Module 1: A1 Module 4: A4

Options for debt repayment:

VET Fee-Help Module 4: A2a

Personal loans and payment plans Module 4: A1, A2a, A3a, A4, Q3

Employee entitlements under:

Fair Work Act Module 3: A3

Equal opportunity legislation Module 3: A3

Superannuation Act Module 3: A3

Income Tax Assessment Act Module 2: A3

Taxation Administration Act Module 2: A3

Credit history and saving:

How to establish and maintain a good credit history

Module 4: A3a, A4, A5, OA, Q1

Importance of saving money as a concept to assist and improve life situation

Module 1: A5 Module 4: A2b, A4

Insurance matters:

Value of insurance Module 5: A1a, A1b, A2a, A2b, A2c, A3, Q5, Q6

Disclosure obligations Module 5: A2c, A3

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Suitable insurance covers:

Personal income Module 3: A2, A4c Module 5: A3

Trade tools, including mobile phone Module 5: A3, Q6

House Module 5: A2a, A2b, A2c

Car Module 5: A1a, A1b, Q5

Health Module 5: A3, Q4

Personal implications of taxation matters:

Role of the Australian Taxation Office and why we pay tax on income

Module 2: A2a, A3

Personal tax liabilities and allowable deductions

Module 2: A2a, A2b, A4, Q1, Q2, Q3, Q4

Tax rates Module 2: A2a, Q3

Lodgement dates Module 2: A3, Q5

Awareness of goods and services tax (GST), pay as you go (PAYG), Australian business number (ABN), tax file number (TFN) and business activity statements (BAS)

Module 2: A4

Principles of budgeting, cash flow and saving, including:

Role of credit and savings in establishing personal wealth

Module 1: A4a Module 4: A2b, Q2, Q3, Q4, Q5

Understanding of financial institutions and their savings, investment and credit products

Module 1: A5, A6 Module 4: A2a, A2b, A3b, A4

Personal financial aspects of:

Bank accounts:

Savings Module 1: A5 Module 4: A2b

Credit Module 4: A2b, A3b, Q2, Q3, Q4, Q5

Investment Module 1: A6

Insurance:

Health Module 5: A3, Q4

Car Module 5: A1a, A1b, Q5

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Phone Module 5: A3, Q6

Warranty Module 5: A3

Tools Module 5: A3

Household Module 5: A2a, A2b, A2c, Q3

Income protection Module 3: A2, A4c Module 5: A3

Superannuation:

Types of funds – retail versus industry Module 3: A2

Fund options – death or total and permanent disability (TPD) insurance

Module 3: A1, A2

Contracts:

Phones Module 4: Q1

Data Module 4: A5

Tenancy Module 4: A5

Finance Module 4: Q2

Superannuation matters:

Planning for the future Module 3: A1

Power of compound interest Module 3: A3a, Q4 Module 4: A2b

Superannuation guarantee Module 3: A3a, Q1, Q6

Co-contributions Module 3: A3a, A3b

Personal contributions Module 3: A3a, A3b, Q2, Q3

Fees and charges Module 3: A1

Value of consolidating super funds Module 3: A5

Locating lost super Module 3: A4a, A4b, Q5

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Supervisor/third party declaration

I confirm that I have observed the student perform the tasks associated with the elements, performance criteria, critical aspects for assessment and required skills and knowledge for this unit efficiently and consistently over the allocated timeframe.

........................................................ ....................................................... ...................

Supervisor/third party name Supervisor/third party signature Date

Assessor declaration

I confirm that I have observed the student demonstrate the skills associated with the elements, performance criteria, critical aspects for assessment and required skills and knowledge for this unit competently.

........................................................ ....................................................... ...................

Assessor name Assessor signature Date

Student*

........................................................

Student name

* Students need to arrange for this Student Workbook to be submitted to their trainer/assessor for signing.

ASIC’s MoneySmart Teaching initiative builds the consumer and financial literacy capabilities of young Australians by developing knowledge, skills, values and behaviours to enable them to make confident, informed consumer choices and responsible financial decisions that are essential to their future financial wellbeing. To access more ASIC's MoneySmart Teaching packages, resources, calculators, apps and consumer information visit moneysmart.gov.au.