Net tangible assets | Queensland Building and Construction Commission

QBCC licence and other fees are set by regulation and increase according to the Government Indexation Rate. For 2024-2025, the Government Indexation Rate is zero percent. Therefore there was no fee increase on 1 July 2024. 


Net tangible assets (NTA) is the

  • total assets of a business
  • less any intangible asset such as
    • goodwill
    • patents
    • trademarks
  • less all liabilities.

NOTE – no liabilities can be removed or deducted from calculations, including related entity liability loans.

How to calculate NTA

NTA is calculated as below:

NTA = [total assets] less [liabilities] less [intangible assets] less [disallowed assets]

What counts as an asset?

To include an asset in when calculating NTA, you must own your it both legally and beneficially. For example:

  • real estate
  • cash
  • plant and equipment
  • tools of trade.

The following are disallowed assets pursuant to section 17 of the MFR Regulation 2018, and cannot be included in calculations:

  • a recreational vehicle
  • an unregistered vehicle
  • a racehorse
  • a collectors item
  • contingent assets (AASB 137)
  • personal furniture
  • unlisted investments or shares
  • non-monetary credits (including cryptocurrency, bartercard etc)
  • investments valued using the equity method under AASB 128 for special purpose financial statements
  • related entity asset loans that do not meet the definition outlined in section 15(1)(k) of the MFR Regulation
  • units in unlisted trusts
  • superannuation that cannot be accessed by the licensee at the period end date
  • trade or barter dollars and any equivalent scheme
  • assets assured to another licensed entity through a Deed of Covenant and Assurance.
  • boats, ships, jet skis, planes, helicopters, race horses and racing cars
  • collectors' items (e.g. paintings, stamps, coins)
  • contingent assets
  • unvested superannuation benefits, and
  • life or income protection insurance policy benefits.
  • life or income protection insurance policy benefits
  • 50% of the value of an invoice for debtors over 180 days
  • 100% of the value of the invoice for debtors over 365 days
  • the defined amount of a deed of covenant provided to another entity
  • assets held on trust for another person or corporation.

NOTE – Accountants must indicate if related entity loan assets have been included, and must verify that they meet the definition of an acceptable asset under section 15(1)(k)

Intangible assets include, but are not limited to:

  • goodwill
  • right of indemnity
  • intellectual property
  • formation expenses
  • value of trademark
  • patents
  • borrowing expenses
  • deferred tax assets.

What counts as a liability?

When calculating NTA, all liabilities must be taken into account.  No liabilities can be deducted or removed under any circumstances.  All related entity liability loans owing must be included.

This includes any debts or obligations you must pay or settle within a certain period of time or pay on demand.

For beneficiary or UPE loan liabilities owing to the licensee (or trust, if licensee is trustee), they must be recorded as current liabilities unless there is formal loan documentation in place between the parties, allowing unconditional right to defer settlement of the liability.

NTA for different business structures

NTA is calculated from:

  • personal assets and liabilities

NTA is calculated from:

  • company assets and liabilities; or
  • in combination with assets assured by one or more Director/s or a related body corporate of the applicant/licensee by way of a Deed of covenant and assurance (deed).  

NTA is calculated from either:

  • the company's assets and liabilities
  • in combination with assets assured by your partner by way of a deed.  

Evidence of a formal business Partnership agreement (PDF) must be provided where a deed is provided by the partner of the applicant. You cannot include the assets of the partnership but may include your personal EQUITY (OR LOSS) in the partnership in determining your NTA.

Example—If the partnership equity is $10,000 and you have a 40 per cent share within the partnership, equity of $4,000 may be included as a personal asset in your NTA.

For an individual:

NTA is calculated from either:

  • personal assets and liabilities
  • in combination with assets assured by one or more of the beneficiaries of the trust by way of a deed.  

For a company:

NTA is calculated from either:

  • assets and liabilities of the trustee company, exclusive of the trust (e.g. $10 representing the issued share capital of the company) 
  • in combination with assets assured by way of a deed from one or more of the following:
    • beneficiary of the trust
    • director of the licensee
    • related body corporate of the licensee.  

Assets and liabilities held in the trust cannot be taken into consideration in determining NTA and cannot be assured to the applicant through the use of a deed. However, the MFR framework must be applied to the financial information of the trust and any QBCC net tangible asset deficiency is a liability in calculating the net tangible asset position of the trustee.

  • In calculating the net tangible assets for a trustee for a trust, the calculation does not include any assets held on trust.
  • However, any asset deficiency in the trust for which the licensee is trustee, is a liability of the licensee and must be deducted from the trustee's net asset position.
  • In determining the net tangible asset position, the MFR Regulation requirements must be applied, and any disallowed or intangible assets and related entity asset loan that does not meet the definition of section 15(1)(k) must be excluded from the calculation

Note—A deed is only available for licensees in categories 1 to 7. Contractors in SC1 or SC2 categories are unable to rely upon a deed.

Your NTA determines your annual turnover

The QBCC limits the maximum revenue (MR)  a licensee can earn for the forthcoming year based on the value of their NTA (their working capital). 

We group licensees into 9 financial categories based on their NTA and maximum revenue. These are outlined in the table below.

SC1 and SC2 have set NTA requirements and a set maximum revenue for the year.

Licensees in other financial categories must calculate either:

  • their maximum revenue (MR) based on their known net tangible assets (NTA)
  • the value of the net tangible assets (NTA) required to cover their known revenue.

This can be estimated using our tool:

NTA/MR calculator

Financial categories based on NTA and MR

Your calculated maximum revenue, based on your accepted net tangible asset position, will place you into 1 of 9 financial categories (see table below).

Your licence or financial category is NOT the maximum revenue amount set on your licence - it is just a range used to calculate your licence renewal fee and determines the level of financial information required to be provided to QBCC. The licence category is the information reflected on your licence. You can use our licence search to check your category - search on QBCC’s website - this is the only public information we release in relation to your financial position.

Your maximum revenue which is calculated on your net tangible asset position is the specific dollar amount you are capped at turning over or earning each financial year, and the specific dollar amount set will be within that licence category range.

Your maximum revenue amount can only be updated by making an application to the QBCC and providing the required financial documentation (which usually consists of an MFR Report and signed financial statements).

NTAMaximum revenueFinancial category
$12,000Up to $200,000SC1
$46,000Up to $800,000SC2
$46,001 - $156,000$800,001 - $3,000,000Category 1
$156,001 - $480,000$3,000,001 - $12,000,000Category 2
$480,001 - $1,200,000$12,000,001 - $30,000,000Category 3
$1,200,001 - $2,400,000$30,000,001 - $60,000,000Category 4
$2,400,001 - $4,800,000$60,000,001 - $120,000,000Category 5
$4,800,001 - 14,400,000$120,000,001 - $240,000,000Category 6
>$14.4M>$240M NTACategory 7

Calculate your maximum revenue

How much revenue can you earn based on your current NTA?

Calculator tool

Calculate your required NTA

What value of NTA do you need to cover your known revenue?

Calculator tool

Last reviewed: 30 Jun 2024 Last published: 30 Jun 2024
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