Running a successful tradie business includes compliance with certain regulations governing the industry you work in. I can imagine your eyes glazing over at the mere mention of it.
For instance, your business survival depends on your ability to have the appropriate licences for the work you’re undertaking. Of course, one of the regulating industry bodies in Queensland is the QBCC, the Queensland Building & Construction Commission.
In this article we’re highlighting some key areas that you must look into to make sure your business is not put in jeopardy.
Are you meeting your Financial Reporting obligations?
The QBCC not only requires licence holders to provide them with regular financial reports. Most contractor licensees must meet minimum financial requirements to hold their licence. As a licensee holding a contractor-type licence, you need to demonstrate through financial reporting that your business can operate sustainably.
Showing that you meet the Minimum Reporting Requirements (MFRs) is easy when you’ve got your financial systems set up correctly. In particular, when it comes to assessing the allowable annual turnover (maximum revenue), net tangible assets as determined by your working capital, and the current ratio in relation to your debts.
If you’re struggling to meet your MFRs know that you can get help. At Straight Talk Accounting & Tax we have the special accounting knowledge to enable you to make your QBCC reporting a breeze. Feel free to contact us for a FREE QBCC Financial Compliance Check via our website www.straighttalkat.com.au.
Do you have the appropriate QBCC license for your business?
In Queensland, individuals (sole traders, partners, trustees), and companies must hold a QBCC licence to carry out (contract for) building work valued over $3,300. That includes tradies. There are some instances that don’t require a licence, eg an unlicensed person working in partnership with a licensee where the licensed partner holds the correct QBCC licence for the work being performed.
It’s also worth mentioning that as a painter or decorator you must hold a QBCC licence of the relevant class for the scope of works you intend to undertake or oversee. In addition, you need to hold a QBCC licence of the relevant type that befits your role and responsibilities in the industry.
The class of licence you need as a Painter and Decorator is called a Trade Licence. Getting a licence involves more than just providing information about your experience and qualifications.
What are the general conditions for a licence holder?
To hold a licence, you must be a ‘fit and proper’ person. For companies, this includes directors, secretaries and other influential people.
In deciding whether you are fit and proper to hold a contractor’s licence, the QBCC considers a range of things:
- your honesty and integrity in commercial and other dealings
- any failure to carry out commercial or statutory obligations and the reasons behind the failure
- whether you have done any Tier 1 defective work
- whether you are an enforcement debtor under an enforcement order for an offence under the Queensland Building and Construction Commission Act 1991 (i.e. you have an unpaid infringement notice fine issued by the QBCC that is outstanding with SPER).
- whether you have had an interstate or New Zealand licence cancelled or suspended
- any other relevant factor (e.g. criminal history).
Licence & Other Fees
The good news is that QBCC licence and other fees are set by regulation and increase according to the Government Indexation Rate. For 2024-2025, the Government Indexation Rate is zero percent. Therefore there was no fee increase on 1 July 2024.
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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.