The Queensland Building and Construction Commission (QBCC) requires contractor-grade licensees in QLD to submit Minimum Financial Requirements (MFR) Report and Annual Financial Report at different times. Both documents serve as proof that your business is financially stable with a sufficient level of working capital.
Important Deadlines: The annual financial report contains the financial information on your most recent reporting year and must be lodged on 31 December for Category 1 to 7 licensees and on 31 March for SC1 and SC2 licensees, the QBCC MFR Report is only required in certain circumstances – find out more below.
>> Visit our QBCC MFR Report and Accounting page to learn more about managing your QBCC obligations. <<
QBCC Annual Financial Report is an annual lodgement of information, that varies depending on the type of license you hold. Whilst, on the surface, lodging the QBCC Annual Financial Report is a straightforward process, it is critical to consider what regulatory action may be triggered if your financial circumstances have changed over the course of the year – in the worst-case scenario, you could end up with your license suspended or even cancelled.
As an alternative to the risk and stress of an unexpected outcome, it is worth considering working with an accounting firm that specialises in the building and construction industry.
A specialist accountant can analyse your financial position and flag any concerns in relation to your licence before lodging your report with the QBCC. This gives you the opportunity to be on the front foot with resolving any issues, rather than waiting for the QBCC to issue a notice of negative action in relation to your licence.
In addition to the peace of mind of having your compliance affairs in order, you will also save time and energy if you have your accountant submit the annual financial information on your behalf.
Xact Accounting is one of Master Builders Queensland’s preferred accounting partners and has lodged a significant volume of annual QBCC returns.
Don’t miss the deadline for the annual financial report lodgement for SC1 and SC2 licensees on 31 March. Call +61 7 3124 8680 now!
The MFR Report is required when you are applying for a Category 1 to 7 licence or needs to update your maximum revenue. It serves as proof that you meet the minimum financial requirements required by QBCC for your licence category:
The QBCC may also request an updated MFR Report under the following financial circumstances:
If you are an SC1 or an SC2 licensee, you are only required to lodge an MFR Report if trading through a trust or if QBCC requests it. The document is also needed if your maximum revenue has increased from SC2 to Category 1.
Whilst the Annual Financial Report is intended to be a quick health check of your business’s finances, the MFR Report is more complicated, for example:
Because of the complex nature of the MFR Report, it can only be prepared and lodged by a qualified accountant. The accountant must also affix their signature on the report along with the licensee.
To qualify, an accountant must:
Caution: Not all certified accountants can prepare and lodge MFR Reports. The QBCC can exclude accountants for 3 years if they have supplied false or misleading information to a licensed contractor or the QBCC or have failed to comply with a requirement in a previous exclusion notice. To check if an accountant has been excluded, visit the register of excluded accountants on the QBCC website.
We offer all QBCC license holders a complimentary QBCC accounting health check, to see if you’re meeting your licence obligations. So, before you lodge your financials with the QBCC, get in touch with us so we can help nip any problems in the bud.
Call our QBCC Hotline today at: 1300 233 723 or email: [email protected].
Or… visit our dedicated QBCC MFR Report and Accounting page to learn more about how to manage your QBCC license requirements.
