
QBCC Maximum Revenue – FAQs
Understanding the details of QBCC Maximum Revenue is essential for construction and building businesses in Queensland. Here we address your key questions about QBCC Maximum Revenue requirements, helping you navigate your financial requirements and maintain compliance.
What is QBCC Maximum Revenue?
QBCC Maximum Revenue requirements refers to the maximum amount of revenue your building or construction business can generate within a 12-month period (typically the Financial year), as stipulated by the Queensland Building and Construction Commission (QBCC). This cap ensures that businesses operate within their financial capabilities, maintaining sufficient working capital and financial sustainability. By placing a limit on the revenue, QBCC aims to protect the financial integrity of the business and the interests of its clients.
How do you work out your QBCC Maximum Revenue?
Your QBCC Maximum Revenue is determined based on your Net Tangible Assets (NTA). The NTA is calculated by subtracting liabilities and disallowed assets from your total assets. Each QBCC financial category has specific NTA and Maximum Revenue requirements.
Whilst your licence might be granted in a Financial Category which covers a wider Maximum Revenue Range, it’s the Licencee’s NTA that determines the specific MR amount. For instance, if your NTA is $66,000, you have a maximum revenue of $1.2 million even though you would fall into the Category 1 band of $800,001 – $3M.
QBCC NTA Calculation:
NTA = Assets − Liabilities − Intangible Assets − Disallowed Assets
Financial Categories and Requirements:
Financial Category |
Maximum Revenue |
Net Tangible Assets (NTA) |
---|---|---|
SC1 | Up to $200,000 | $12,000 |
SC2 | Up to $800,000 | $46,000 |
Category 1 | $800,001 to $3M | $46,001 to $156,000 |
Category 2 | $3M to $12M | $156,001 to $480,000 |
Category 3 | $12M to $30M | $480,001 to $1.2M |
Category 4 | $30M to $60M | $1.2M to $2.4M |
Category 5 | $60M to $120M | $2.4M to $4.8M |
Category 6 | $120M to $240M | $4.8M to $14.4M |
Category 7 | Over $240M | Over $14.4M |
What should I do if my QBCC Maximum Revenue goes over the allowable limit?
QBCC allows a leniency of 10% over your allowable turnover. For example, if your allowable turnover is $1.2 million, you can earn an additional $120,000 without breaching the requirements.
If you anticipate breaching your Maximum Allowable Revenue by 10% or more, you will need to apply to Increase your Maximum Revenue with the QBCC. This can also mean you fall into a different Financial Category. There are two big events when changing categories:
Moving from SC2 into Category 1 and Category 4 or above means you now need to submit General Purpose Financial Statements prepared by a qualified Accountant alongside a MFR and Licence uplift request.
In order to upgrade your Maximum Allowable Revenue, you will need a qualified accountant to prepare an MFR Report with financial statements that are no more than 4 months old. We strongly recommend taking a proactive approach with an Accountant who is experienced with QBCC MFR as there are some specific accounting rules that apply.
From a timing perspective, we typically allow at least a month for preparation and submission of an MFR Report including implementing the required steps to meet the new NTA position.
What will QBCC do if I go over my MR or don’t have enough NTA?
Failing to adhere to your MFR obligations can lead to severe consequences, including a full QBCC audit or the suspension and/or cancellation of your QBCC license. QBCC compliance action is generally triggered when a licensee’s annual reporting flags they do not meet MFR. Licencees are then required to prepare an MFR Report to show they are compliant or how they plan on becoming compliant via a commitment to a range of financial activities.
Do I only include turnover from my building work in my QBCC Maximum Revenue amount?
No, you must include all turnover (or income) earned from all sources, not just from building activities. This includes income from investments, other business activities, and any other revenue streams. However, salary or wages received as an employee, rather than as a contractor, are excluded.
How are your Net Tangible Assets Calculated for your Maximum Allowable Revenue?
Net Tangible Assets (NTA) play a crucial role in determining your QBCC financial category and Maximum Revenue amount. NTA represents the minimum Allowable assets the QBCC requires you to hold for the Maximum Revenue your business is looking to do. Your NTA is calculated based on your Balance Sheet (Assets less Liabilities) at the end of the reporting period (typically 30 June), adjusted for any Non-qualifying Assets per QBCC guidelines.
Example of Non-Qualifying Assets:
- Intangible assets like goodwill and trademarks.
- Disallowed assets like personal furniture and superannuation.
There are also reductions for Debtors that have been outstanding for longer than 180 days (50%) and 365 days (100%).
Maintaining the required NTA is essential for QBCC compliance, and any decrease beyond 30% (or 20% for higher categories) can affect your license status and lead to QBCC reviews and/or Audits.

Typical Assets for Building and Construction:
- Cash in the bank
- Accounts Receivable/Debtors
- Work in Progress – Work completed in between invoicing stages.
- Property
- Plant & Equipment / Motor Vehicles
Typical Liabilities for Building and Construction:
- Credit Cards
- Accounts Payable/Creditors
- Retentions Held
- Deposits for works not started (Negative Work in Progress)
- ATO Obligations – GST / Income Tax
- Employee Obligations – Tax withheld / Superannuation / Child Support
- Hire Purchase loans on Plant and Equipment / Motor Vehicles
- Long Term Business Loans.
Why your NTA matters:
- Ensures your business has enough assets to cover liabilities.
- Regularly monitoring your NTA helps you stay compliant with QBCC requirements.
- Helps identify potential financial risks early.
What are the Reporting Requirements for a higher License Category?
As you move up the QBCC financial categories, the reporting requirements become more complex. Category 1-4 and above licences require Data to be reported to the QBCC annually along with General Purpose Financial Statements. This will generally always lead to a longer lead time when preparing these Financial Statements, as Accounting Standards need to be applied in greater detail.
When a MFR is required for either a Licence Application or a Request to increase / decrease your Maximum Allowable Revenue, the Reporting requirements are dependent on the License category you are seeking:
- SC1 and SC2: Simplified reporting with basic financial declarations.
- Category 1 to Category 7: Requires MFR complying Financial Statements prepared by an independent qualified accountant.
What are practical tips for staying within QBCC Maximum Revenue limits?
Staying within your QBCC Maximum Revenue limits requires diligent financial management and proactive planning.
- Maintain accurate and up-to-date financial records and know your MR and NTA limits. This is crucial for ensuring compliance with QBCC requirements.
- Keep track of all income sources, not just from building activities, to ensure you include all relevant turnover in your calculations. You may want to consider re-structuring to limit the unintended impact of revenue flowing from non-QBCC work.
- Work with an accountant experienced in QBCC regulations. This is most important before the end of the reporting period (30 June) and before you lodge your annual financials to ensure current licence requirements are met, OR if a licence uplift is likely, that you have the required NTA to support a higher MR.
- It’s better to be proactive than on the wrong end of QBCC action… If you anticipate significant growth, plan ahead by preparing the necessary MFR reports and adjusting your financial strategies.
Talk to our expert QBCC accounting team
Understanding and managing your Maximum Revenue is crucial for the success and sustainability of your building or construction business. By keeping track of your turnover, maintaining your NTA, and adhering to QBCC guidelines, you can avoid potential pitfalls and ensure your business thrives.
For expert assistance and a free consultation with our QBCC accounting team, don’t hesitate to reach out.
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