If you’re in the building and construction industry, there are changes coming to how the Queensland Building and Construction Commission (QBCC) will require reporting, starting from as early as 1 January 2019. Due to changes in legislation in 2014 that has prevented the QBCC from monitoring companies at potential risk of insolvency or collapse as closely, as it had done pre-2014, the QBCC have decided to re-instate a compulsory annual Minimum Financial Requirement (MFR) regulation to be reported on.
There are some major changes that will be occurring from as early as 1 January 2019. The key ones in a nutshell:
The reporting requirements will vary depending on the category that your business trades in, however, the additions to the MFR aims to:
These changes will be rolled out in two Phases. Important dates and changes are outlined below.
Phase 1 Commencement Date: 1 January 2019
Changes: reintroduce mandatory annual reporting, require larger, high risk licensees to report decreases in Net Tangible Assets of 20% or more, and provide clarity about calculating a licensee’s assets.
Phase 2 Commencement Date: 1April 2019
Changes: remaining reinforcements will be implemented.
Regardless of the category your business falls within with the QBCC, you will need to provide financial information to the QBCC each year and complete annual reporting which will now leverage existing reporting requirements to make reporting easier for you.
Categories SC1 and SC2 (those with lower revenue):
Categories SC1 to category 3:
Categories 4 to 7 (those with higher revenue):