Queensland has new laws designed to build a stronger and fairer construction industry. Annual financial reports have been introduced to check the financial strength of contractor grade licensees in Queensland.
The goal of the new annual reporting requirements is to ensure every building contractor who operates in Queensland has a strong business with a sufficient level of working capital.
Essentially, annual reporting is a quick health check of your licence each year which licensees can prepare and submit without an accountant and no accounting standards are required to be applied.
Annual reporting was due by 31 December 2019. However, licensees who did not meet the deadline must still provide their annual financial information as soon as possible. This can be done online via the myQBCC portal.
To date, over 50,659* licensees have lodged their annual reporting. That equates to over 75%* of the total required licensees lodging their information. This includes lodgements made by 100% of Category 4 - 7 licensees, 92%* of Category 1 - 3 licensees and 71%* of SC1 and SC2 licensees. We would like to thank these licensees for their cooperation and efforts. .
Licensees must have sufficient working capital to meet Minimum Financial Requirements. However, as previously announced, the QBCC will give licensees who have lodged their annual reporting in categories SC1 to Category 3 until 31 December 2020 to have the necessary working capital before taking any regulatory action. This is subject to the licensee not committing another breach of QBCC Legislation.
The QBCC are taking a considered, cascading approach to regulatory action.
For licensees who have not yet lodged their annual reporting information, the QBCC may take regulatory action such as a licence condition of no new work until the licensee complies with the annual reporting requirement.
To date, four Category 4 – 7 licensees have had their licence suspended due to their failure to lodge their annual reporting., with one licence proceeding to cancellation. The QBCC are currently in the process of proposing imposing regulatory action against Category 1 - 3 licensees who have failed to lodge their annual reporting. Licensees will be contacted in writing should a proposed condition be placed on their licence.
If you need more information on Annual Reporting, please visit the QBCC website: https://www.qbcc.qld.gov.au/financial-reporting-licensees/annual-reporting.
* Figures accurate as of 7 June 2020