Financial reporting for licensees
Minimum Financial Requirements from 1 October 2014
We introduced a new financial policy on October 1, 2014. The Minimum Financial Requirements Policy forms part of the Government’s Service Reforms to strengthen and grow Queensland’s building and construction industry.
The aim is to:
- promote financially viable businesses and foster professional business practices
- reduce the burden and cost of maintaining your licence
- enhance security of payment.
Regulatory burden and costs reduction - no financial information at annual renewal
We are significantly reducing the regulatory burden and cost of maintaining your licence by removing the need for you to provide financial information at renewal time.
Enhancing security of payment
We realise that non-payment of debts cause financial distress and costs the industry millions of dollars each year. Under the new policy, you need to pay all debts within agreed trading terms. Failure to pay a legitimately owed debt that is not subject to genuine dispute, will result in loss of licence.
The change will mean that the Commission can move quickly and decisively to deal with issues of non-payment.
Streamlined process - sources of confusion eliminated
There will be one set of rules for all licensees with one report type for all categories, when first applying for a licence or upgrading maximum revenue. The Policy has been rewritten and definitions clarified.
Changes to financial categories - allowing small business in the industry to grow
For the first time since 2006, the limits for self-certification categories have increased. Revenue limits have doubled to $200,000 (trade contractors only) and $600,000 (entry level for builders).
Monitoring business performance
The building industry is one of the pillars of the Queensland economy and we want to promote financial viability in business. The new policy requires you to monitor your financial performance at least quarterly. This aligns with BAS (GST) reporting requirements and will help to foster professional business practice within the industry.
For a comprehensive explanation of all the changes, view key messages about the new policy.
The Minimum Financial Requirements comparison table provides detail about the differences between the old and new policy.