Have you submitted your 2019 Annual Reporting?
Under the new Minimum Financial Requirements (MFR) Regulation, Queensland Building and Construction Commission (QBCC) licensees who hold a contractor grade licence are required to meet annual financial reporting obligations. If you hold a Nominee Supervisor or Site Supervisor licence only, these MFR laws do not apply to you.
Annual reporting was due by 31 December 2019. However, if you did not meet the deadline you must still provide your annual financial information as soon as possible. This can be done online via the myQBCC portal.
If you failed to provide financial information by 31 December 2019, the QBCC may take regulatory action, however if you are in category SC1, SC2 or Category 1-3, the QBCC will generally adopt the following cascading actions, in the following order:
- The QBCC will make at least two attempts to contact you after 31 December 2019. Contact methods may include telephone or email;
- The QBCC will notify you of a proposed condition on its licence that no new contracts can be entered into until the annual report is lodged. However such notification will generally not be given prior to 1 April 2020 unless you have another breach, for example a monies owed complaint against you;
- The QBCC will impose the licence condition and give notice to show cause why the licence should not be suspended;
- The licence will be suspended and a notice to show cause why the licence should not be cancelled will be given;
- The licence will be cancelled.
More about the MFR Regulation
What does this mean?
- The previous MFR Policy has now been fully repealed and replaced with the MFR Regulation;
- Licensees may be required to provide additional information to substantiate deeds and related party loans;
- Introduction of stronger penalties and enforcement action for licensees that do not comply with the new requirements;
- Licensees will be required to provide annual financial information. Visit our annual reporting page for more information: qbcc.qld.gov.au/financial-reporting-licensees/annual-reporting
If your turn over is between $600,000 to $800,000
- The self-certifying 2 licensee revenue limit has now increased to $800,000;
- If you have a turnover of between $600,000 and $800,000 and are relying on a deed of covenant and assurance to meet your net tangible assets (NTA) you can continue to rely on your deed until 31 December 2019.
- The minimum NTA required for the self certifying 2 category has increased from $36,000 to $46,000 and you have until 31 December 2019 to ensure you meet this requirement.
If your turnover exceeds $30 million
- There are now higher reporting standards for companies with a turnover in excess of $30 million;
- You are required to notify the QBCC if your NTA decreases by more than 20% by way of an MFR Report.
The following table provides a summary of your annual reporting requirements:
To make it easier to submit information, you can upload your reports though the online portal myQBCC.
For further information on MFR, visit the QBCC’s Financial reporting for licensees page: qbcc.qld.gov.au/financial-reporting-licensees/annual-reporting or the Department of Housing and Public Works website: hpw.qld.gov.au and search for Minimum Financial Requirements.