Last updated: March 2026
What Is a Unit of Competency?
A unit of competency is the fundamental building block of Australia's training package system. It specifies the skills and knowledge required to perform a particular workplace task or function to the standard expected in the industry. Units are the smallest component of a training package that can be independently assessed and formally recognised.
Every unit of competency is published on training.gov.au (TGA) and follows a standardised structure defined by the national VET framework. RTOFlow imports this data directly from TGA to generate training and assessment resources that are precisely aligned to each unit's requirements.
Anatomy of a Unit of Competency
Unit Code and Title
Every unit has a unique alphanumeric code (such as BSBSTR502) and a descriptive title (such as "Facilitate continuous improvement"). The code identifies the training package (BSB = Business Services), the stream or functional area (STR = Strategy), and a sequence number. Understanding this coding convention helps you navigate the thousands of units available on training.gov.au.
Application
The application statement describes the purpose and context of the unit — who would typically perform this work, in what type of workplace, and at what level of responsibility. This is essential for contextualising your training delivery and assessment to make it relevant to your learner cohort.
Elements of Competency
Elements describe the essential outcomes of the unit. They represent the key work functions or activities that a competent person must be able to perform. Most units contain between 3 and 6 elements, each broken down further into performance criteria. Elements are numbered sequentially (1, 2, 3, etc.) and should be read as a logical progression of work activities.
Performance Criteria
Performance criteria sit beneath each element and specify the required level of performance. They describe what must be done and to what standard. For example, under an element about "planning work activities," performance criteria might include identifying objectives, allocating resources, and establishing timelines. Every performance criterion must be addressed in your assessment tools.
Foundation Skills
Foundation skills identify the language, literacy, numeracy, and employment skills that underpin competent performance in the unit. These include reading, writing, oral communication, numeracy, digital literacy, problem-solving, teamwork, and self-management. Where foundation skills are not explicitly addressed in the performance criteria, RTOs must still ensure they are developed and assessed as part of training delivery.
Knowledge Evidence
Knowledge evidence specifies what the learner must know and understand to perform the work described in the unit. This includes theoretical knowledge, legislative and regulatory frameworks, organisational policies and procedures, and technical concepts relevant to the unit. Assessment of knowledge evidence typically involves written or oral questions, case studies, or research tasks.
Performance Evidence
Performance evidence specifies what the learner must be able to do — the practical skills and capabilities that must be demonstrated. Performance evidence requirements often include producing specific work outputs, completing a number of instances, or demonstrating competence across a range of contexts. Assessment of performance evidence requires practical demonstrations, workplace observation, or portfolio evidence.
Assessment Conditions
Assessment conditions specify the context and resources required for assessment. They may include access to specific equipment, workplace environments, legislation, organisational policies, or other materials. Assessors must ensure that the conditions specified in the unit are met during assessment — this is a common area of ASQA audit focus.
Using Unit Data for Training Delivery
Units of competency tell you what must be achieved, but not how to teach it. This competency-based approach gives RTOs flexibility to design training strategies that suit their learner demographics, delivery modes, and industry context. However, your training must address all elements, performance criteria, and evidence requirements.
Key Principles for Using Unit Data
- Always use the current version of the unit from training.gov.au — superseded units should not be used for new enrolments
- Read the application statement to understand the intended context and level of the unit
- Map your training content to every element and performance criterion
- Design assessment that covers all knowledge evidence and performance evidence requirements
- Ensure assessment is conducted under the specified assessment conditions
- Address foundation skills in your training delivery, even where not explicit in performance criteria
- Consider the AQF level of the qualification the unit sits within to calibrate the depth and complexity of your content
Contextualisation of Units
Contextualisation means adapting the training and assessment to reflect the specific industry, workplace, or learner context. While the unit requirements are nationally consistent, how they are delivered and assessed can — and should — vary to make learning relevant. For example, a business communication unit might be contextualised differently for a healthcare organisation compared to a construction company.
Important: Contextualisation must never remove or dilute the requirements of the unit. You can add industry-specific examples, workplace scenarios, and relevant terminology, but all elements, performance criteria, and evidence requirements must remain fully addressed.
How RTOFlow Handles Units of Competency
RTOFlow imports unit data directly from training.gov.au's API, ensuring you always work with the latest published version. When you create a stream in RTOFlow and assign units to it, the platform:
- Analyses all elements, performance criteria, knowledge evidence, performance evidence, and assessment conditions
- Generates learner guides with content mapped to each element and performance criterion
- Creates assessment workbooks with tasks addressing every evidence requirement
- Produces marking guides with criteria aligned to performance criteria
- Contextualises content to the industry, AQF level, and stream context you define
- Generates a provenance manifest showing exactly which TGA data was used
You can browse the full directory of units in our units of competency directory, which is sourced directly from training.gov.au.
Frequently Asked Questions
What is a unit of competency?
A unit of competency is the specification of the skills and knowledge required to perform effectively in a specific workplace task or function. It is the smallest component of a training package that can be assessed and recognised. Each unit includes a title, descriptor, elements, performance criteria, knowledge evidence, performance evidence, assessment conditions, and foundation skills.
What are elements and performance criteria?
Elements describe the essential outcomes of a unit — the key work functions that must be demonstrated. Performance criteria specify the level of performance required for each element. Together, they define exactly what a learner must be able to do to be assessed as competent. All assessment activities must map to these elements and performance criteria.
What is the difference between knowledge evidence and performance evidence?
Knowledge evidence specifies what the learner must know and understand — the theoretical and technical knowledge underpinning competent performance. Performance evidence specifies what the learner must be able to do — the practical skills that must be demonstrated. Both types of evidence must be assessed and documented to confirm competency.
What are foundation skills in a unit of competency?
Foundation skills are the language, literacy, numeracy, and employment skills essential for competent performance in the unit. They include reading, writing, oral communication, numeracy, learning, problem solving, initiative and enterprise, technology, teamwork, and planning and organising. RTOs must address these skills in their training and assessment where they are not explicit in the performance criteria.