If you are a licencee of the Queensland Building and Constuction Commission (QBCC), you must fulfill yearly reporting duties. Annual reporting acts as a financial health check, forming part of ongoing Minimum Financial Requirements (MFR) obligations.
We’ve been helping contractors, builders and tradies with their QBCC reporting in Cairns and across the Far North since 1996.
Key dates for lodging your report
It’s essential a QBCC Tax Agent submits your financial details by the relevant reporting date. The annual reporting submission dates are:
for SC1 and SC2:
- lodge from—1 November
- due by—31 March
for categories 1-7:
- lodge from—1 August
- due by—31 December.
If your licence (company or individual) operates within categories 1-7, you may wish to lodge your report before 31 December. The Christmas period significantly challenges many businesses as operating areas generally reduce.
To get ahead, contact our team of accountants in Cairns to ensure you remain compliant and avoid any penalties.
QBCC financial reporting categories:
The information you must provide and submission dates varies depending on your business’s financial category. The categories are based on revenue, from smallest to highest, starting with ‘Self Certifying Category 1’ and ending with ‘Category 7’.
Self-Certifying Category 1 (SC1)
- Revenue up to $200,000
- Net tangible assets up to $12,000
- Due by 31 March
Self-Certifying Category 2 (SC2)
- Revenue up to $800,000
- Net tangible assets up to $36,000
- Due by 31 March
Category 1 – 3
- Revenue between $800,000 to $30 million
- Net tangible assets $36,001 to $1,200,000
- Due by 31 December
Category 4 – 7
- Revenue over $30 million
- Net tangible assets $1,200,001 to $240,000,000
- Due by 31 December
It is important to note that the reporting requirements also change depending on your category. Please speak to our team to help ensure you are providing the right information and for your peace of mind.
What information should I include in an QBCC annual report?
The documentation or paperwork required as part of you QBCC annual report varies depending on your category. Generally this is what you will need to provide as part of you QBCC annual report.
Self-Certifying Category 1 (SC1)
- No documentation is required if you are lodging through myQBCC.
Self-Certifying Category 2 (SC2)
- No documentation is required if you are lodging through myQBCC.
Category 1 – 3
The following documents must be lodged:
- Balance sheet
- Statement of cashflow
- Aged debtors and creditors report
- Profit and loss statement
Category 4 – 7
The following documents are some that may be required as part of your lodgement:
- Signed declaration verifying documents
- Balance sheet
- Statement of cashflow
- Aged debtors and creditors report
- Profit and loss statement
As you only have one chance to get your QBCC report right, we highly recommend you utilise a qualified accountant to prepare your lodgement.
When is a MFR required?
The Minimum Financial Requirements (MFR) regulation was introduced in January 2019 to reduce financial failure and ensure businesses had sufficient cash flow.
An MFR report is separate from the QBCC annual financial reporting. The MFR report is required:
- when you submit an application for a new licence (Category 1 or higher);
- if your net tangible assets decrease by over 20% for Categories 4-7 licensees or 30% for other licencees.
- should you fail to maintain the required Current Ratio of at least 1:1;
- if you exceed your maximum revenue threshold by 10% of more in a given year;
- when there is a significant change to your business structure;
- if QBCC requests it.
If you need help submitting a MFR report, please contact us; we will help you provide the relevant information.
What must a MFR include?
An MFR report or declaration is required to ensure you remain compliant with the QBCC. This report demonstrates to the QBCC that you have enough working capital to continue to operate. It also includes your current debt levels, ensuring your business operates within the 1:1 debt ratio. As part of this report, you will also declare your intended annual turnover.
It’s easy for licence holders to be confused by the varying requirements. This is why it is important for businesses to work with an accountant who understands the QBCC accounting requirements.
Finding a Cairns accountant who can help with QBCC reporting
Our team has extensive experience in the building and construction industry and QBCC reporting specifically. We can help you compile MFR reports and your annual QBCC annual report.
To learn more about our accounting services, please get in touch with Gary Wilkins.
Useful links: