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Level 2
Credits 3
Purpose People credited with this unit standard are able to, for personal financial management: demonstrate knowledge of sources of income, and taxation and other deductions relating to personal income, and other receipts; and describe legislative requirements and sources of advice in relation to income.
Subfield Core Generic
Domain
Status
Status date
Date version published
Personal Financial Management
Registered
19 June 2008
19 June 2008
Planned review date
Entry information
30 June 2013
Recommended: Unit 1978, Identify basic employment rights and responsibilities, and sources of information and assistance , or demonstrate equivalent knowledge and skills.
Evaluation of documentation by NZQA. Accreditation
Standard setting body (SSB) NZQA National Qualifications Services
Accreditation and Moderation Action Plan (AMAP) reference 0226
This AMAP can be accessed at http://www.nzqa.govt.nz/framework/search/index.do
.
Special Notes
1 This unit standard is designed to aid understanding of personal finances. It is not concerned with business finances.
2 Legislation relevant to this unit standard includes:
KiwiSaver Act 2006
Income Tax Act 2007
Employment Relations Act 2000
Holidays Act 2003
Parental Leave and Employment Protection Act 1987.
© New Zealand Qualifications Authority 2007

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Other legislation relevant to this unit standard may include but is not limited to:
Injury Prevention, Rehabilitation, and Compensation Act 2001
Goods and Services Tax Act 1985
Privacy Act 1993
Human Rights Act 1993
Minimum Wage Act 1983
Wages Protection Act 1983
Equal Pay Act 1972
Student Loan Scheme Act 1992.
3 Unearned income refers to income that is not a salary or wages. It includes interest, dividends, or realised capital gains from investments, rent from land or property ownership, and any other income that does not derive from work.
Element 1
Demonstrate knowledge of sources of income for personal financial management.
Range earned income, unearned income.
Performance criteria
1.1 Sources of personal income are defined and differentiated by the use of examples.
1.2 Sources of personal income are explained in terms of circumstances in which they apply.
Range Sources of income include – salary or wages, interest, government superannuation, one other government benefit;
At least one other that may include but is not limited to – commission, royalties, dividends, fees/payment for a contract, rent, board, private superannuation, Accident Compensation
Corporation (ACC).
1.3 Personal income is differentiated from other receipts.
Range Other receipts may include but are not limited to – winnings, oneoff gifts, student loans.
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2.5
2.6
Element 2
Demonstrate knowledge of taxation and other deductions relating to personal income, and other receipts for personal financial management.
Performance criteria
2.1 Taxation is explained in terms of links with different sources of income.
Range Pay As You Earn (PAYE), Resident Withholding Tax (RWT),
Provisional Tax, Terminal Tax;
Sources of income include – salary or wages, interest, government superannuation, one other government benefit;
At least two others that may include but are not limited to – commission, royalties, dividends, fees/payment for a contract, rent, board, private superannuation, ACC.
2.2 The requirement to pay tax is explained with reference to legislation.
2.3 Tax
Range ACC, Goods and Services Tax (GST), Provisional Tax, Terminal
Tax.
2.4 Repayment obligations of student loans are described.
Range Student loan repayment threshold, repayment obligation, correct tax code.
Tax codes are identified in terms of the sources of income.
Own tax code is identified.
Range Where the candidate has no tax code or prefers not to divulge it or their employment details, assessment may be based on a case study and/or simulation;
Element 3
Describe legislative requirements and sources of advice in relation to income for personal financial management.
Performance criteria
Range KiwiSaver Act 2006, Income Tax Act 2007, Employment Relations
Act 2000, Holidays Act 2003, Parental Leave and Employment
Protection Act 1987;
At least two requirements are described for each Act.
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3.2 Sources of help and advice for income-related tax and legislative requirements are described in terms of service provided.
Range Sources – one government, one other.
Please Note
Providers must be accredited by NZQA, or an inter-institutional body with delegated authority for quality assurance, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment.
Industry Training Organisations must be accredited by NZQA before they can register credits from assessment against unit standards.
Accredited providers and Industry Training Organisations assessing against unit standards must engage with the moderation system that applies to those standards.
Accreditation requirements and an outline of the moderation system that applies to this standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The AMAP also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.
Comments on this unit standard
Please contact the NZQA National Qualifications Services nqs@nzqa.govt.nz
if you wish to suggest changes to the content of this unit standard.
© New Zealand Qualifications Authority 2007