Written by Elle Sweeney
What are the New QBCC Reporting Requirements?
Phase 2 of the new minimum financial requirements (MFR) began on 1 April 2019 which requires licensees to report their financial information to QBCC annually (as was the case prior to 2014).
The changes aim to improve the standards of financial reporting particularly for larger licensees and prevent high profile insolvencies. The regulation will operate alongside the current policy where you need to provide an MFR report to increase your maximum revenue or change licence class.
If you are a licensee within financial categories self-certifying 1 (SC1) to Category 3 you will need to submit your financial information to QBCC by 31 December 2019 and continue to report annually.
Other changes include a restriction whereby personal recreational vehicles, such as motor bikes, boats and caravans, can no longer be used to meet minimum asset thresholds.
Requirements for SC1 and SC2 Licence Holders (Up to $800k annual turnover)
SC1 and SC2 will continue to self-certify but are required to provide the following for the 2019 FY onwards to QBCC by 31 December each year:
– Net tangible assets
Requirements for Category 1-3 Licence Holders (Up to $30,000,000 annual turnover)
Category 1 to 3 are required to report decreases in net tangible assets (NTA) of 30% or more AND provide the following for the 2019 FY onwards to QBCC by 31 December each year:
– Profit & loss statement
– Balance sheet
– Aged debtor & creditor listing
– Statement of cash flow
Requirements for Category 4+ Licence Holders (Over $30,000,000 annual turnover)
Category 4 and above have even more stringent reporting requirements.
Why is the QBCC Requiring this Additional Reporting?
QBCC will use this information to check compliance with licensee requirements including the current ratio test, changes in NTA and maximum revenue. It is therefore important licensees are aware of their obligations and financial position.
Depending on the accuracy and completeness of your records, you may need your accountant’s assistance to get this information ready for the QBCC.
We recommend you keep up to date on all of the changes by visiting the QBCC website and speaking with your accountant/advisor.
We’ll be working with our clients in the lead up to the first 31 December deadline this year to ensure they are compliant and fall within the QBCC requirements. If you require assistance with your QBCC reporting, please reach out to me so we can discuss your obligations.