QBCC Annual Reporting explained by Dylan Eve, Partner and Client Director at Xact Accounting—learn the key requirements, deadlines, and common pitfalls to ensure your business stays compliant and your contractor’s license remains secure.
Need help fast? Call our QBCC MFR Hotline today on 1300 233 723
Neglecting your QBCC Annual Reporting or submitting financials that are unlikely to pass QBCC’s Minimum Financial Requirements (MFR) is a sure-fire way to risk your licence!
With enhanced systems and resources, the QBCC is increasingly diligent in following up with licensees who don’t comply with their regulations – including the requirement to lodge annual financials.
If you don’t submit your annual financials, you’ll receive a letter asking why not, and 99 times out of 100, not lodging will trigger regulatory action from the QBCC.
Even if you do submit your QBCC Annual Financial Report on time, but fail to meet their requirements, you’ll expose yourself to the possibility of a QBCC audit.
To avoid issues with QBCC Annual Financial Reporting, it’s best to stay proactive – saving you time and money.
Hear from Gary, a trusted client of Xact Accounting, as he shares his experience working with us to simplify compliance, improve financial clarity, and keep his business on track.
Click here to arrange your FREE QBCC MFR Consultation.
Call our QBCC Licencing hotline now on 1300 233 723 for a free MFR test to ensure your financials will pass before you lodge.
QBCC’s Annual Reporting is compulsory for all licence holders and, as the name suggests, involves supplying financial information about your business annually to the QBCC. This process helps the QBCC review each licence holder’s financial fundamentals and ensures you are meeting your Minimum Financial Requirements (MFR) obligations.
Failure to submit your annual report could result in the QBCC cancelling your licence – so it is not something to overlook! Further, submitting financials that fail to meet QBCC’s MFR standards could trigger action, potentially leading to licence suspension or cancellation.
Because of the importance of QBCC Annual Reporting, it’s crucial to discuss your reporting requirements with your QBCC specialist accountant as early as possible. This will reassure you that you meet MFR standards or will allow you to start working with your accountant to achieve compliance as soon as possible.
Reporting requirements vary based on your license category:
SC1 And SC2 licensees: simply input figures for revenue, expenses, liabilities and assets into the myQBCC portal.
Licence categories 1 to 3 (revenue between $800,001 and $30,000,000): upload a full set of management accounts including a balance sheet, profit & loss statement, aged debtors listing, aged creditors listing, and a statement of cash flows.
Licence categories 4 to 7 (revenue of $30 million and above): submit signed financial statements prepared as general purpose financial statements.
Make sure you’re aware of the current QBCC Annual Report Lodgement deadlines.
Not sure if you’re sure if your annual reports are going to pass MFR? Book a time for a free QBCC MFR Financial Health Check.
Book a Free QBCC Financial Health Check.
Need help fast? Call our QBCC MFR Hotline today on 1300 233 723
The financial data must be based on the most recent financial year, typically ending 30 June for most entities in Queensland.
Whilst an MFR report is not required as part of your QBCC Annual Financial Reporting requirements, the annual reporting process will often trigger the need for one. A common trigger for an MFR Report is exceeding your Maximum Allowable Turnover (MAT) by more than 10% resulting in a requirement to upgrade your licence.
With many builders experiencing increased revenue in the past year, Xact Founding Partner and CEO, Mick Renton predicts that many licensees will only realise they’ve exceeded their MAT when they lodge their QBCC Annual Financial Report in 2025.
“To avoid additional expense and delays, it is critical that QBCC licensees discuss these changes with their accountant ASAP – well before lodging their QBCC Annual Financial Report, or find an accountant who can satisfy the requirements.”
Our most important recommendation is: make sure your accountant tests to ensure your financial position will pass QBCC Minimum Financial Requirements BEFORE lodging.
Failing to do this, or lodging a return that won’t pass MFR will put your licence at risk and complicate the whole process even further.
For example, if you know that you have exceeded your Maximum Allowable Turnover, you will save a significant amount of time and money working with a specialist QBCC accountant proactively, rather than waiting for the QBCC notices to arrive, and the process of suspending or cancelling your licence to commence.
Click here to arrange your FREE QBCC MFR Consultation.
Need help fast? Call our QBCC MFR Hotline today on 1300 233 723
Your licence is your livelihood. Without it, all work must stop and your business could face significant risks.
You might be juggling many moving parts in your business, but your QBCC licence MUST be a priority.
If you receive a notice from QBCC about financial reporting issues, time is of the essence. You’ll generally have 28 days to respond to QBCC, and to provide the required financial information and, if requested, a Minimum Financial Requirements (MFR) report.
Failing to comply, can lead to severe penalties – with serious consequences for you and your business, including license suspension and potential cancellation.
QBCC’s specific accounting regulations around annual reporting, mean you need an accountant who understands and is experienced in QBCC requirements. QBCC takes this very seriously and has started excluding accountants who haven’t complied with their accounting regulations.
Like any profession, accountants usually specialise in a particular industry. A general accountant, for example, the one that does your annual tax returns or regular BAS and Bookkeeping, might not have experience with QBCC Licensing or QBCC Annual Reporting.
“If you don’t use an accountant who understands QBCC licensing and the building and construction industry, you run the risk of getting into more trouble – or at a minimum having the process draw out for even longer.”
Xact Accounting is Queensland’s leading expert in QBCC’s accounting requirements and QBCC Annual Reporting requirements. Get in touch via the options below or check out our QBCC Accounting and MFR Report page to learn how we’ve helped other QBCC licensees.
Click here to arrange your FREE QBCC MFR Consultation.
Need help fast? Call our QBCC MFR Hotline today on 1300 233 723
