The QBCC requires majority of licence holders to lodge their financial information on an annual basis.
Why does the QBCC need your financial information?
The QBCC requires the financials of your business for to maintain your licence category each year. The information they gather helps ensure that every building contractor operating in QLD can pay their debts with a strong business position. The reporting’s objective is to achieve less bankruptcy, liquidation and ultimately more success within the construction industry.
When do you need to lodge this information with the QBCC?
You need to lodge your annual financial information to the QBCC by the required reporting day. We have noted the lodgement date for most of our clients to be 31 December (your date should be shown where the highlight is on the picture below). Please ensure to review this date as it has been known to change for some. The QBCC should contact you with a letter (example below) at least 40 days before the deadline to submit your annual financial report.
Action Required by 31 December 2020
The usual annual reporting deadline is 31 December. It will be essential that you prepare and submit your annual return by this date to avoid restrictions and penalties being applied by the QBCC.
It may be possible to use your figures to 30 June 2020 to satisfy the annual report. However, if your figures are not strong enough at 30 June it may be necessary to prepare a new set of figures as at a more recent month. This additional work must be considered when planning to submit by the deadline.
What does the QBCC do with your financial information?
The QBCC conducts a financial health check of your business to ensure you have the minimum assets or ratio (hence why it is called Minimum Financial Requirements). If you do not satisfy the requirements for your turnover threshold, the QBCC may take action such as placing you into a lower revenue category or imposing penalties/fines.
What if you had no revenue this year?
If you are not actively using your licence, you will still be required to provide your financial information to the QBCC every year. You can report that your turnover is $0, but you still need to hold the required Net Tangible Assets to be eligible for your relevant licence category. If you are not trading under your licence, you may wish to change the grade to a nominee supervisor, which is not required to meet financial requirements.
As we are approaching the lodgement date, it is imperative you have your information ready. If you think you will need to lodge your financial information and need some assistance, contact Link Advisors and we can guide you through the process.