**Note: QBCC Financial Reports are due 31 December, but your action is required today!**
Attention all Builders & Tradies: New QBCC Minimum Financial Requirements
Queensland’s building licence regulator, the QBCC, has made some significant changes to the minimum financial requirements for all licence holders. To ensure you’re not at risk of licence suspension or cancellation, you’ll need to make sure both you and your accountant are across these changes.
Why are the ‘rules’ being changed?
Several high-profile bankruptcies in recent years have left many subcontractors unpaid and in trouble. The Queensland Building and Construction Commission have recognised that some more active monitoring of licensees’ financials may help prevent this from happening in future.
What has changed?
The most significant change is the requirement for almost all Self Certifying (SC) and Category 1 and 3 licence holders to submit their financial information (for EOFY 2019) to the QBCC by 31 December 2019. Please note that some licence holders (building designers, hydraulic service designers and site classifiers) may be exempt – check with QBCC for more information.
If you fit into the SC1 category ($200,000 maximum revenue), you’ll need to make sure you have net tangible assets of $12,000. If you’re in the next category (SC2 – $800,000 maximum revenue), you’ll need to show evidence of net tangible assets of $46,000.
In both cases, you’ll be required to submit your financial information to QBCC online before 31 December 2019. Before you do this, it’s important to discuss your potential to meet QBCC’s financial requirements BEFORE your accountant wraps up your end of year books.
If your licence sits in Categories 1-3 (maximum revenue between $800,001 and $30,000,000), you’ll be required to submit financial information in an ‘MFR Report’. This Minimum Financial Requirements Report can be no more than four months in age from the end of the financial reporting period. The financial information must be based on your most recent financial information, being either:
- last financial year end accounts; or
- the current financial year to date accounts.
QBCC is encouraging licensees to lodge electronically via their portal. They have, however, acknowledged that you might also lodge by paper.
What’s my first step?
Ask your accountant to cue your 30 June 2019 Financial Statements sooner rather than later (keeping in mind they may not be around to help you between Christmas and New Year). Get them to test your compliance with QBCC’s Minimum Financial Requirements to ensure that you’ll pass the QBCC tests when you lodge.
For more information, contact the friendly team at 1stStop Professional Services today. We’ll get you on the right track and ready to keep doing what you do best.