Minimum Financial Requirements (MFR) from 1 January 2019
The Queensland Building and Construction Commission (Minimum Financial Requirements) Regulation 2018 commenced on 1 January 2019 with the aim of restoring the effectiveness of the Minimum Financial Requirements (MFR) for licensing and returning the QBCC’s powers to regulate those requirements.
If you hold a contractor grade licence, you will be required to meet annual financial reporting obligations.
You will need to lodge financial information with the QBCC each year on or before your annual reporting day. We will notify you when your annual reporting day occurs but you can apply to change the date if needed.
Financial information can be lodged via myQBCC. See Minimum Financial Requirements - myQBCC User Guide (PDF) for more information.
If you already hold a licence,you must submit the required financial information for the most recent reporting year by the following dates:
|Licensing category||Financial Information Required||Reporting Requirements|
|Self-certifying (SC) 1 and 2||Declaration of revenue and Net Tangible Assets (NTA)||Submit financial information for the most recent reporting year by 31 December 2019.|
|Category 1 – 3||
Financial reports, including:
Statement of cashflows
|Submit financial information for the most recent reporting year by 31 December 2019|
|Category 4 – 7||
Signed financial information, including:
Submit financial information for the most recent reporting year by 31 March 2019.
We have notified existing licensees in categories 4-7 of their requirement to lodge financial information. Reminders will be sent to other relevant licensees closer to 31 December 2019.
New licensees will be notified of their annual reporting day on approval of their licence.
ASIC or ASX Reporting
Licensed companies who are required to report to ASIC or ASX must also submit a copy of the report to QBCC within 30 days of lodging the report with ASIC or ASX.
Penalties may apply for not complying with the Minimum Financial Requirements for licensing.
Decreases in Net Tangible Assets
SC1, SC2 and category 1 – 3 licensees must report to QBCC a decrease in net tangible assets (NTA) of more than 30%. Licensees in category 4 – 7 are to report decreases in NTA of more than 20%.
Working out Net Tangible Assets
Personal recreational vehicles, such as dirt bikes and golf buggies can no longer be used when working out NTA.
Money held in a project bank account (PBA) may be included as an asset. Head contractors and subcontractors will be able to include any amount in the general trust account in which they have a beneficial interest. Subcontractors will also be able to include retention amounts and disputed funds.