The new Minimum Financial Requirements (MRF) laws commenced on 1 January 2019 with the aim of ensuring that licensees in the building and construction industry are operating a financially sustainable business.
What are the main QBCC changes?
- Reintroduction of annual reporting to QBCC
- Lodgement via an online portal
- Additional financial information required
- Additional information required regarding related party loans
- Increase in turnover for the self-certifying category to $800,000 per annum
- Stronger penalties
There have been no changes to the calculation of Net Tangible Assets required or the current ratio used to determine the financial viability of a business. The minimum current ratio for a licensee is 1:1. This means the licensee must have at least $1 in current assets for each $1 of current liabilities.
What financial information is required
- Profit & Loss Statement
- Balance Sheet
- Debtors and Creditors Report
- Statement of Cash Flows
This financial information does not need to be provided by an accountant, however we recommend you authorise Hall Browns to lodge the annual financial information on your behalf. If an MFR report is required to be lodged, this must be signed off by an accountant. The MRF report is required only when:
- Applying for a new licence
- Increasing turnover
- Increasing net assets
- Reducing net assets
- If requested by QBCC
The first annual report is due by 31 March 2019 for categories 4-7 (turnover over $30m) or 31 December 2019 for all other categories (turnover up to $30m).If you are licensed with QBCC you should by now have received information from QBCC regarding the changes.
If you would like further information on any of the QBCC reporting requirements, or the impact on your business, please contact us on 07 3831 1055 or at firstname.lastname@example.org.
DISCLAIMER: The information on this website and the links provided are for general information only and should not be taken as constituting professional advice from Hall Browns Accountants. You should consider seeking the appropriate legal, financial, or taxation advice to check how the website information relates to your unique circumstances.