The 31 December QBCC reporting date for categories 1-7 is less than a month way. With the deadline fast approaching we encourage you to work with us to ensure you uphold your Minimum Financial Requirements (MFR) obligations.
There is often confusion about QBCC reporting and the difference between Annual reports and MFR reports. They are two seperate reports and below is a quick run through of the differences and answers to some frequently asked questions. For more extensive information, refer to our Guide to QBCC financial requirements and reporting.
Annual reporting
- Is a quick financial health check. Licensees must report every year on time.
- In most instances, the report is satisfied with internal management accounts or a three-page annual reporting form. No accounting standards are required so licensees can do this themselves.
- For licensees operating medium to large scale operations (categories 1-3 and 4-7), the 31 December reporting date allows sufficient time to prepare EOFY documents while ensuring they are still current enough for assessment purposes.
QBCC MFR report
- Is only required in certain circumstances, such as a new licence application, decreasing your NTA or increasing the maximum revenue, or if the licensee is audited.
- Demands prescribed accounting standards and so must be produced by a qualified accountant.
- Financial statements cannot be any older than 4 months at the time the accountant signs off on them.
QBCC reporting FAQs
I have a contractor license. Do I always need to report?
Yes. You must report on time, every year.
Do I need to report as an individuals and as a company?
If a licensee holds an individual Contractor licence and is the responsible person for a company Contractor licence (eg a director) they must provide annual reporting in both instances
What if I have nil revenue?
If a Contractor licence is held by a licensee who:
- is retired
- not currently trading in the building industry, or
- an employee, or working on wages
annual reporting still needs to be completed. Under these circumstances the revenue for the period would be $0.
What if I have been trading for less than a year or have been suspended from trading for part of the year?
You still need to report and provide details of the revenue you have generated in the time you have worked over the relevant reporting period.
You may wish to apply for a new licence type (without MFR obligations). For example, a Nominee supervisor licence allows a licensee to be an employee for a licensed company. Note: this licence does not allow licensees to personally contract or subcontract to carry out building work.
Can I use the Annual Report to change my maximum revenue or licence category?
No. Annual reporting lodgements are not used to upgrade or downgrade a licensee’s maximum revenue or change licence categories.
Further help:
If we can assist you with QBCC reporting or with any questions you have about your obligations, please do not hesitate to contact us. As specialist QBCC accountants we know the ins and outs of the MFR rules and make sure you stay on track and compliant.
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