Queensland Building and Construction Commission (QBCC) requires licence holders to submit annual financial reporting, determined by their licence type and approved maximum revenue to demonstrate ongoing financial sustainability. The reporting obligations arise under the Minimum Financial Requirements Regulation (MRF Regulation).
The reporting requirements are dependent on the following:
- whether the licence is a company licence or individual contractor licence.
- the licence’s financial category, which is based on maximum revenue.
- whether there are triggering events (for example exceeding revenue by more than 10%, a drop in net tangible assets or significant changes in business structure).
There are certain licensees who do not have to meet any MRF obligations, which include:
- Nominee supervisor
- Site supervisor
- Occupational licensees
- Building certifiers
- Pool safety inspectors
Additionally, licensees in the following classes with valid professional indemnity insurance may not have to meet the minimum financial requirements in certain circumstances unless they hold a licence in another class.
- Builder Project Management Services
- Building Design (low rise, medium rise and open)
- Hydraulic Services Design
What are the annual financial reporting requirements?
Under the MFR laws, licensees with a contractor-grade licence need to lodge their annual financial information to the QBCC by the required reporting day.
The annual financial reporting requirements are determined by the financial category of licence the entity holds, which is based on the annual turnover of the business and whether the business has sufficient net tangible assets (NTA) to support the level of income. The QBCC limits the maximum annual revenue a licensee can earn based on the value of their net tangible assets.
There are nine financial categories of QBCC licences which are outlined below based on the net tangible asset position of the business. Licensees must ensure they maintain the minimum level of net tangible assets for their turnover level.
| Financial Categories | Maximum Revenue | Net Tangible Assets |
| Self-Certifying 1 | Up to $200,000 | $12,000 |
| Self-Certifying 2 | Up to $800,000 | $46,000 |
| Category 1 | $800,001 - $3,000,000 | $46,001 - $156,000 |
| Category 2 | $3,000,001 - $12,000,000 | $156,001 - $480,000 |
| Category 3 | $12,000,001 - $30,000,000 | $480,001 - $1,200,000 |
| Category 4 | $30,000,001 - $60,000,000 | $1,200,001 - $2,400,000 |
| Category 5 | $60,000,001 - $120,000,000 | $2,400,001 - $4,800,000 |
| Category 6 | $120,000,001 - $240,000,000 | $4,800,001 - $14,400,000 |
| Category 7 | >$240 million | >$14.4 million |
The following table outlines the QBCC Annual Reporting requirements across the licence categories
| Category | What is Required to be Submitted |
| Self-Certifying Categories 1 & 2 |
Note: Licencees are no longer required to submit Annual Reports, effective from 7th March 2025. |
|
Categories 1, 2, & 3 |
|
|
Categories 4 - 7 |
|
What are the QBCC reporting deadlines?
The QBCC has specific timeframes and due dates for financial reporting based on the different licence categories.
- For self-certifying 1 and self-certifying 2 categories, the lodgement period is from 1 November and is due by 31 March.
- For categories 1-7, the lodgement period is from 1 August and is due by 31 December.
What are the consequences of non-compliance?
Failing to lodge annual reporting, or lodging financial statements which do not meet the MFR thresholds, can have serious consequences including:
- Penalties under QBCC legislation.
- The licence may be suspended, or in severe cases cancelled.
For More Information
For more information on the Queensland Building & Construction Commission’s licensing requirements, understanding your QBCC reporting obligations or for assistance in lodging your financial information, please contact Greg Rankin – Manager or Smiljan Jankovic – Managing Director on (07) 3002 2699 or via email (gregr@agredshaw.com.au; smiljanj@agredshaw.com.au).
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