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Minimum Financial Requirements - What do you need to do now?

The partially introduced Minimum Financial Requirements (MFR) Regulation which commenced on 1 January 2019 has now been fully introduced from 2 April 2019.

These laws support the security of payment initiatives within the building and construction industry. 

Under the new MFR Regulation, Queensland Building and Construction Commission (QBCC) licensees who hold a contractor grade licence will be 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.

 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  • The previous MFR Policy has now been fully repealed and replaced with the MFR Regulation;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.

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