Page 13 - NLN April 19

Builders and Contractors New QBCC Requirements – ARE YOU READY?

From 1 January 2019, the documents required to fulfil the QBCC licence
financial reporting requirements changed.

The main QBCC minimum financial requirements changes 2019 are: • A person in partnership with an appropriately licensed person
• Businesses with sales or turnover up to and including $600,000 If a Contractor is not appropriately licenced, proposed new penalties
or $800,000 (from 1 April 2019) can self- assess by declaring the align Queensland more closely with other states and territories, which
required values on-line with no financial assistance from their generally have higher maximum penalties for unlicensed building
Accounting advisers; work. For example, the maximum penalty in both Victoria and New
• Small to Medium sized businesses (SME’s) turning over up to and South Wales is 500 penalty units, with the possibility of 12 months’
including $30m of revenue must provide: imprisonment in New South Wales for second and subsequent offences.
1. A Profit and Loss statement; QBCC LICENCE CHECK
2. A balance sheet; To maintain a QBCC licence, licenced Contractors are subject to financial
3. An amounts receivable and payable aged listing and; checks to ensure they have a certain value of the Assets in their business
4. A statement of Cash Flows. to support the level of sales or turnover they make each year. It is
These reports should generally be accessible from your Accounting fundamentally a test of solvency. If a contractor is found not to have
system and to save licence renewal preparation costs, they should be sufficient asset values, their licence can be suspended or terminated
considered as part of the financial year-end reports when you do your and possibly face penalties. This check is called a QBCC ‘MFR’ report
tax work. The reports required to be given to the QBCC are detailed and form (minimum financial requirement).
care is needed when preparing licence renewals because if Contractor’s The QBCC gives at least forty business days-notice to renewing
get it wrong, penalties can result. Contractors.
WHO NEEDS A QBCC LICENCE? NBC assists with the licencing renewal requirements for all of our SME
In Queensland the Queensland Building and Construction Commission QBCC licenced clients and are experts in preparing and providing the
(QBCC) requires that Contractors be appropriately licenced for a vast correct reports to the QBCC so our clients can be sure their licences are
number of activities involving the construction, erection, renovation, not jeopardised due to incorrect financial information.
alteration, extension, improvement or repair of a variety of projects if Northern Business Consultants – (NBC Mango
the value of the work exceeds $3,300 (including the cost of materials). Hill Pty Ltd) are Big Local sponsors and are
Some general exemptions to these QBCC licence requirements are: Accountants, Tax and Business Advisers located
• Work personally performed by the owner of land if the work value at the upper level of the Mango Hill Market
is $11,000 or less. Place and Aspley. Any advice given in this article
• An employee of an appropriately licensed contractor; is general in nature and cannot be acted upon
• A subcontractor of an appropriately licensed trade contractor; without specific advice from NBC Mango Hill Pty Call 07 3862 8777
Ltd. Please visit us at: nbc.com.au www.nbc.com.au

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