The new Minimum Financial Requirements (MFR) Regulation will commence on 1 January 2019. The Regulation will operate alongside the current MFR policy, which was introduced in October 2014. These will support the security of payment initiatives within the building and construction industry.
Under the new laws, QBCC licensees who hold a contractor grade licence will be required to meet annual financial reporting obligations.
What do you need to do today?
If you are a licensee within financial categories self-certifying 1 (SC1) to Category 3:
There is no immediate impact. You will need to submit your financial information to QBCC by 31 December 2019. We will send you a reminder in early 2019 including guidance on what information is to be submitted.
You may be interested to know that these changes to the law will require the biggest builders in Queensland to provide detailed financial information to the QBCC before April 2019. These legal changes will assist the QBCC to determine whether a licensee is experiencing financial distress. This requirement to send information in early 2019 does NOT apply to you
If you are a category 4 to 7 financial licensee:
Before April 2019 you will need to provide your financial statements for the last financial year to the QBCC, these will need to include profit and loss statement, balance sheet, debtors and creditors report and cashflow statements. If you are a licensee who already provide copies of your annual ASX or ASIC reports to the QBCC then you do not need to provide a separate report.
To make it easier for you to submit information, you will be able to upload your reports though the online my QBCC portal, which will be available from early 2019.