Act now to stay QBCC compliant

There is an important date coming up which is critical for tradies and builders holding a QBCC licence. Self-certification categories (SC) 1 and 2 and category 1 to 3 licensees must provide the Queensland Building and Construction Commission (QBCC) with financial information by 31 December 2019.

We’ve been hearing of big companies being suspended by the industry watchdog, the QBCC for non-compliance issues. The same can happen to small business owners who fail to make their licence renewal payments on time or haven’t provided the information required by the QBCC Minimum Financial Requirements (MFRs).

Depending on your business turnover, you’ll need to submit different levels of financial information to the QBCC. As a Category 1 to 3 licensee, you’ll definitely need your financial systems in good order to satisfy the MFRs.

Here are a couple of points to remember when submitting your Self-certification documents:

1. The reporting requirements for SC1 and SC2 licensees are different to Category 1 to 3 licensees. SC1 and 2 licensees must provide a declaration and some basic financial information, whereas Category 1 to 3 licensees need to provide more detailed information (profit and loss; balance sheet; statement of cash flow, etc).
2. There is a new requirement for SC2 licensees to have Net Tangible Assets (NTA) to the value of $46,000.
3. The information doesn’t need to be prepared by an accountant; although if you already use an accountant, it will be easier to submit the latest information provided by them for your end of financial year tax reporting.
4. If you hold an individual and company contractor licences, you need to provide financial reports for both licenses.
5. SC 1 & 2 licensees are not able to use deeds of assurance or guarantees to meet their NTA requirements.

If you’re interested to find out how to best set up your accounting system so you can always meet your QBCC reporting requirements contact us now for a FREE QBCC Accounting System Check.

Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.