Financial reporting for licensees
Reporting requirements for individuals
If you are applying for a licence or want to change your maximum revenue, you will need to provide information about your revenue.
Up to $600,000
If your maximum revenue (MR) in the financial year is up to $600,000, you can declare that it will not exceed:
- $200,000 where you have net tangible assets of $12,000 (PDF) (this option is not available to builders), or
- $600,000 where you have net tangible assets of $36,000 (PDF).
If your MR is over $600,000 in the financial year, you need to provide an MFR Report (PDF) signed by an accepted independent accountant with signed financial statements attached. You must:
- have sufficient net tangible assets (NTA) in your own right for the level of MR required (or in combination with a Deed of Covenant and Assurance)
- maintain the minimum required current ratio of 1:1
- maintain internal management accounts at quarterly intervals in each financial year (you don't need to send this in, unless we ask)
- for a trust or partnership, attach a copy of signed financial statements of the trust or partnership and your signed financial statements with the MFR Report and maintain accounts for the licensee and trust/partnership
- provide evidence of your professional indemnity insurance at the time of application, renewal, audit or other specified time, where required
- at all times, pay all undisputed debts within industry trading terms
- the financial information should be no older than 4 months from the end of the financial reporting period being relied on, at the time the report is signed.
For an application, the report must be signed no more than 30 days prior to the date the application is provided to the Commission.
Trusts and partnerships
We don't license trusts but we may license you, as trustee for a trust. Your maximum revenue (MR) must cover the revenue for both you and the trust, but you must have net tangible assets (NTA) in your own right as you can't use the trust's assets.
If you trade through a partnership, you must provide us with proof of this business partnership or an original or certified copy of our Statutory Declaration for Partnership (PDF). The MR applies to you, in combination with the partnership.
Do you need Professional Indemnity insurance (PI)?
Applicants applying for the licence classes below, and who comply with the prescribed conditions, may be exempt from financial reporting. They do not have to provide financial information and can instead provide evidence of holding the required level of Professional Indemnity Insurance and an Estimated Maximum Revenue declaration (PDF).
- Builder Project Management Services
- Building Design – Low Rise
- Building Design – Medium Rise
- Building Design – Open
- Hydraulic Services Design
- Hydraulic Services Design (excluding design of on-site domestic waste water management)
- Site Classifier
- Site Classifier (excluding on-site domestic waste management).
Note: You are not able to use this provision if you hold a contractor licence in a class other than those mentioned above, e.g. you hold a Carpentry contractor licence – in this instance you must comply with the full MR policy.