Licensee requirements to report financial information
The Minimum Financial Requirements (MFR) Regulation was introduced on 1 January 2019 to help ensure every building contractor in Queensland has a strong and financially sustainable business with an appropriate level of working capital. The goal of these requirements is to reduce financial failure, liquidations and bankruptcy within the industry and ensure that people are paid for their work.
What is Minimum Financial Requirements (MFR)?
MFR is the minimum net tangible assets (NTA) and current ratio required to ensure your business is financially sound and sustainable. The QBCC will calculate your ratio based on the information you provide.
Annual financial reporting – part of MFR requirements
Part of the MFR requirements is for licensees to submit annual financial reporting information to the QBCC. When you submit information, the QBCC will conduct a financial health check of your business to assess whether you have the minimum assets or ratio. When you and others in the industry operate financially sound businesses, everyone gets paid for their work.
Apart from annual reporting requirements, you may be required to demonstrate that you meet the minimum financial requirements, such as when you apply for a licence or want to change your maximum revenue.
The information you need to provide will depend on your financial category. Please select your category for more information:
- Financial reporting requirements for Self-certifying Category 1 and 2 (Maximum revenue up to $800,000)
- Financial reporting requirements for Categories 1-3 (Maximum revenue between $800,001 - $30,000,000)
- Financial reporting requirements for Categories 4-7 (Maximum revenue more than $30,000,001)