Competency is the consistent application of knowledge and skill to the standard of performance required in the workplace. It embodies the ability to transfer and apply skills and knowledge to new situations and environments.

Competency is a broader concept than the ability to perform individual workplace tasks and comprises the application of all the specified technical and generic knowledge and skills relevant for an occupation. Particularly at higher qualification levels, competency may require a combination of higher order knowledge and skills and involve complex cognitive and meta-cognitive processes such as reflection, analysis, synthesis, generation of ideas, problem solving, decision making, conflict resolution, innovation, design, negotiation, strategic planning and self-regulated learning).

Competency is demonstrated to the standard required in the workplace and covers all aspects of workplace performance including: 

• performing individual tasks; 
  
• managing a range of different tasks; 
  
• responding to contingencies or breakdowns; and 
  
• dealing with responsibilities of the workplace, including working with others.
  

Competency requires not just the possession of workplace related knowledge and skills but the demonstrated ability to apply specified knowledge and skills consistently over time in a sufficient range of work contexts.

Units of Competency in Training Packages are developed by industry to meet the identified skill needs of industry. Each unit of competency identifies a discrete workplace requirement and includes the knowledge and skills that underpin competency as well as language, literacy and numeracy; and occupational health and safety requirements. The units of competency must be adhered to in assessment to ensure consistency of outcomes.

Units of competency are the smallest component of achievement which can be nationally recognised: it is the unit of competency as a whole, not individual elements or performance criteria, which are recognised.

Units of competency:

• are nationally agreed statements of the skills and knowledge required for effective performance in a particular job or job function
• describe work outcomes
• can logically stand alone when applied in a work situation.

Units of competency do not describe the procedures necessary to perform a particular role.

They provide the basis for:

• recognition of skills within and across industries
• work organisation reviews and options
• development of training
• assessment
• certification
• credit transfer and articulation.

Each unit of competency describes:

• a specific work activity
• the conditions under which it is conducted
• the evidence that may be gathered in order to determine whether the activity is being performed in a competent manner.

By examining different aspects of the unit of competency, implementers of Training Packages will be able to understand the following:

• the work activity and what it involves
• the particular skills (and level of skills) that are needed to perform the work activity
• the conditions under which the work activity may be conducted
• the evidence that is needed to demonstrate that a person is competent in the work activity
• the knowledge and skills that are required to perform the work activity
• the generic work skills (or employability skills) that are needed
• the evidence that should be gathered to demonstrate competency
• the resources that may be needed to gather the evidence.