Financial reporting for licensees

Financial reporting requirements for Category 4-7 (Maximum revenue more than $30,000,001)

Applying for a licence - Individuals and stand-alone companies

Licensees that require a maximum revenue (MR) in the financial year greater than $30,000,001 are required to submit financial information in the MFR Report or other report (listed in the MFR policy). 

The report can be no more than 4 months in age, from the end of the financial reporting period being relied upon, at the time the accountant signs the report (unless otherwise stated in this policy, or as approved by the Commission).

 The financial information may be based on the applicant’s most recent financial information, being either: 

  • last financial year end accounts; or 
  • the current financial year to date accounts.

A copy of the Signed Financial Statements being relied upon must accompany the MFR report. The report must not be signed more than 30 days prior to the date it is provided to the Commission. 

Forms submitted with alterations, other than the completion of the spaces provided, may be refused by the Commission; i.e. incomplete forms, or forms with information supplied in addition to or in place of what is requested.

Alternatively, if you are required to prepare annual reports for ASIC or ASX, a copy of these reports may be lodged to the Commission to satisfy this annual reporting requirement.

For consolidated companies

Where the company operates within a group of companies, it may rely on the consolidated accounts of the group if:

  • the company is the parent entity of the group, or
  • the company is a subsidiary within the group, and is party to a Deed of Cross Guarantee (ASIC Class Order 98/1418 or similar); 

The MFR report should be completed based on either:

  • the consolidated group of companies; or
  • the "closed group" of companies – being only those companies subject to the Deed of Cross Guarantee, 
  • the company, in its own right, as a stand-alone company.

The company must provide evidence that the Deed of Cross Guarantee was in place for the period of review on which the report is based and continues to be in place for the forthcoming financial year.

Changing your Maximum Revenue (MR)

To increase or decrease the MR for companies with revenue between $600,001 - $30,000,000 the licensee must complete and submit financial information in the MFR Report or other report (listed in the MFR policy) together with a copy of the signed financial statements relied upon to complete the MFR report.

Annual Reporting requirements

The QBCC Regulation commencing 1 January 2019 requires licensees that have a Maximum Revenue over $30,000,001 to provide reports about their financial position prepared under the Australian Accounting Standards including:

  • a profit and loss statement;
  • a balance sheet;
  • a debtors and creditors report;
  • a statement of cashflows;
  • notes to the financial statements containing notes required by the Australian Accounting Standards;
  • a written declaration verifying the information contained in the documents mentioned above, and;
  • a description of the measurement, within the meaning of the Australian Accounting Standards, on which the financial statements mentioned above, are based and the accounting policies or reports relevant to those financial statements.

Alternatively, if you are required to prepare annual reports for ASIC or ASX, a copy of these reports may be lodged to the Commission to satisfy this annual reporting requirement.

To allow existing licensees to meet the reporting requirements, licensees or their nominated representative can login to myQBCC from 1 January 2019 to complete the Minimum Financial Requirements report from the MyForms tab.

New licensees will be given a written notice stating the required annual reporting date after the licence is approved.