What is the QBCC MFR Report? (Updated 2025)

The QBCC MFR Report (Minimum Financial Requirements Report), is used to verify whether building and construction company licence holders are financially fit enough to operate at the revenue level outlined on their licence.

Whilst a QBCC MFR Report is not required for all building licence categories or for annual financial lodgements, it is compulsory in a variety of situations and it is important to understand the requirements. We recommend you appoint a specialist QBCC Accountant to help ensure your QBCC MFR Report is prepared correctly and to reduce risk of licence issues.

Visit our QBCC MFR Report and Accounting page for the latest news on managing your QBCC MFR obligations.

Book a FREE consultation with one of our QBCC Accountants

When is a QBCC MFR Report required?

A QBCC MFR Report is required in a range of situations, these include:

• When you apply for or upgrade to, a Category 1 or above licence.
• If your Net Tangible Assets (NTA) position decreases by more than 20% or 30% (depending on your licence category)
• If you exceed your Maximum Allowable Turnover (MAT) by more than 10%

In addition, the QBCC may request that you prepare an MFR Report at any time if they have grounds for concern about your financial circumstances.

You are not ordinarily required to present a new QBCC MFR Report if you want to downgrade from Category 1-7 to a Self-Certifying (SC1 or SC2) licence. However, QBCC may still request a MFR Report in this case.

BUT be careful when downgrading, where you are relying on a Deed of Covenant and Assurance for the existing Category Licence, as an alternative approach may be required.

Who prepares the QBCC MFR Report?

As QBCC relies on the financial information outlined in the MFR Report to determine your eligibility for a licence, the financial information it contains must be accurate and comply with QBCC regulations. As such, the report can only be prepared by a qualified accountant.

To be considered qualified, your accountant must:

• Be an independent, external party (not your immediate family member, employee, executive officer, investor, shareholder, or partner)
• Meet the requirements of a qualified accountant outlined in the ASIC Corporations (Qualified Accountant) Instrument 2016/786, or
• Be a Registered Company Auditor, and
• Hold a current public practising certificate from the Association of Taxation and Management Accountants or National Tax and Accountants Association, Certified Practising Accountants, or Chartered Accountants Australia & New Zealand

Your chosen accountant must apply the relevant Australian Accounting Standards and QBCC Regulations that govern the information in the MFR Report. They must also affix their signature on the document and complete a declaration confirming compliance with QBCC MFR Regulations.

Not all certified accountants can prepare an MFR Report for licensees. Accountants can be excluded by QBCC if they:

• Have provided false or misleading information to a licensed contractor or the QBCC
• Failed to comply with the MFR reporting requirements
• Did not comply with a requirement in a previous exclusion notice

Excluded accountants are prohibited from preparing an MFR Report for three (3) years.

To ensure that your accountant is not prohibited from preparing an MFR Report, check out the register of excluded accountants on the QBCC page.

The specialist QBCC team at Xact Accountants are specialists in preparing QBCC MFR Reports on behalf of our clients and we can help you.

What are the key components of the QBCC MFR Report?

1. Net Tangible Assets (NTA): Builders are required to demonstrate a minimum level of NTA, representing the tangible assets that can cover their liabilities. This includes property, plant, equipment, and other assets.
2. Current Ratio: This ratio gauges the company’s short-term financial health by comparing current assets to current liabilities. A positive current ratio indicates the ability to meet short-term obligations.
3. Profit and Loss Statement: The QBCC MFR Report includes a detailed profit and loss statement, providing insights into the company’s revenue, expenses, and profitability.
4. Cash Flow Statement: Highlighting the inflow and outflow of cash, the cash flow statement is crucial in assessing a company’s liquidity and ability to manage its operations effectively.

Specialist QBCC accountants, like our team at Xact Accounting, possess a deep understanding of the specific components required and the regulations imposed by the QBCC. Our expertise ensures that your MFR Report is carefully prepared to meet all regulatory requirements.

Book a FREE consultation with one of our QBCC Accountants

Meeting your Minimum Financial Requirements can be tricky!

There are some key things to consider when compiling your QBCC MFR Report that licensees must be wary of.

The most common issue we see relates to Family Trusts and how assets are recognised (or not recognised as is the case with Trusts) by the QBCC.

Building and construction companies often have unique financial structures. Our specialist QBCC Accounting team can develop customised financial strategies to enhance your company’s financial position, meeting QBCC requirements while optimising overall financial performance.

The QBCC MFR Report involves complex financial data, and inaccuracies can lead to serious consequences. Our team is adept at navigating these complexities, ensuring an accurate representation of your company’s financial standing.

It is critical that licensees use an accountant that specialises in the building industry. Failure to comply with these specific requirements could result in having your licence suspended or cancelled!

QBCC regulations are subject to change, and staying updated is essential. Our team of specialist QBCC accountants provide proactive compliance management, keeping you abreast of any regulatory changes.

Important Reminders about your QBCC MFR Report

• Your QBCC MFR Report cannot show a deficit in net tangible assets.
• The QBCC MFR Report should be submitted along with the accountant’s prepared and signed financial statements.
• The accountant signing the Financial Statements cannot be the same person signing the MFR report. The QBCC MFR is essentially like a mini audit, so requires a secondary qualified accountant to sign.
• It must be no older than four (4) months from the end of the financial reporting period. Ensure your QBCC MFR Report aligns with the latest 2025 submission deadlines.
• Financial statements must be General Purpose Financial Statements (GPFS). In 2025, all statements must fully comply with the latest Australian Accounting Standards.
• The QBCC will not accept the MFR Report for an application or change of maximum revenue if it is signed more than 30 days before they receive it.

We offer all QBCC licence holders a complimentary QBCC accounting health check, to see if you’re meeting your licence obligations.

Book in now for your FREE consultation with one of our QBCC specialist accountants so we can help nip any problems in the bud.

Or, call our QBCC MFR Hotline today at: 1300 233 723 or email: [email protected].

Finally, you can visit our dedicated QBCC MFR Report and Accounting page to learn more about how we can help to manage your QBCC licence requirements.