The new QBCC Minimum Financial Requirements (MFR) Regulations commenced on 1 January 2019. The Regulation will operate alongside the current MFR policy which was introduced in October 2014. These will support the security of payment initiatives within the building and construction industry.
Under the new laws, QBCC licensees who hold a contractor grade licence will be required to meet annual financial reporting obligations.
This is to ensure that every building contractor who operates in Queensland has a viable and sustainable business.
Licensees in all categories are required to submit their 2019-2020 financial information by 31 December 2020.
What happens if you get QBCC wrong?
Failure to meet the QBCC annual reporting requirements can result in the suspension of a building licence and fines of:
- more than $2,600 for individuals
- more than $13,000 for companies
- prosecutions for those that do not submit their reports by the due date
It is therefore paramount that businesses in the Queensland building industry have a managed plan in place to comply with these obligations.
When to get help
Where the financial review process is only undertaken annually (such as year-end financial statements and tax returns) the opportunities to make tough decisions, financially restructure, or adjust for changing market conditions are unlikely to be managed appropriately.
We therefore advise regular monitoring of QBCC ratios to ensure any problems are picked up and solved well before you lodge your annual report. This is particularly important if you are worried about:
- Exceeding your Maximum Revenue;
- A decrease in your Net Tangible Assets; or
- Not meeting the Current Ratio (1:1 ratio of current assets to current liabilities) requirements.
Where to get help
Check if you’re compliant by organising a meeting with one of our QBCC specialists who will be able to make sure that you’re meeting your requirements and work out an action plan if your numbers don’t add up. You can reach us on (07) 3023 4800 or at email@example.com.
You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track.
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