Building & Construction Industry: What you need to know about MFR reporting

Article by Emma Harnas

Queensland has new laws designed to build a stronger, fairer construction industry. Annual financial reports have been introduced to check the financial strength of contractor grade licensees in Queensland. Annual reporting is mandatory and you may already have the information needed.

Under the Minimum Financial Requirements (MFR) laws, licensees with a contractor-grade licence need to provide financial information to the Queensland Building and Construction Commission (QBCC) by 31 December 2019.

What reporting date should be used?

You are required to provide financial information for your most recent reporting year.

For most licensees now, your most recent reporting year end would be 30 June, in line with the financial year.

However, a reporting date after 30 June is acceptable.

What happens if you miss the 31 December 2019 due date?

SC1, SC2 and Categories 1-3 licensees

  • The QBCC will contact to check you are aware of your obligations. We recommend you contact the QBCC as soon as possible if you are unable to meet the due date.
  • The QBCC may then issue an extension of time at their discretion.
  • For any licensee stating that they cannot meet the deadline due to hardship (for example floods, fires, droughts, personal health problems or that of a family member, extended leave etc,) it is important to make this clear.

Categories 4-7 licensees

  • The QBCC may take action such as a licence condition or notice of intention to suspend your licence. If a notice is received it will contain a specified period to provide new information that complies, otherwise compliance action ensues (suspension/ cancellation/ conditions).

What if the MFR requirements aren’t met after submitting?

If you have not met the licence requirements we recommend you contact the QBCC to discuss on 139 333.

SC1, SC2 and Categories 1-3 licensees

  • The QBCC will contact to check you are aware of your obligations. We recommend you contact the QBCC as soon as possible if you are unable to meet the due date.
  • The QBCC may then issue an extension of time at their discretion.

Categories 4-7 licensees

  • We expect you will receive a notice to suspend and a timeframe to submit compliant information, this might be for a new reporting period i.e. Dec or Jan.

What if you have no Income, or are not currently trading?

If you are not actively using your licence you will still be required to provide your financial information to QBCC annually.

You can report that your turnover is $0, but you still need to hold the required Net Tangible Assets to support your licence category.

If you are not trading under your licence, you may wish to change the grade to a nominee supervisor, which is not required to meet financial requirements.

Links to available resources:

QBCC Guide to Annual Financial Reporting: https://www.qbcc.qld.gov.au/sites/default/files/Guide_to_Annual_Financial_Reporting.pdf

myQBCC User Guide for Licensees: https://www.qbcc.qld.gov.au/sites/default/files/Minimum_Financial_Requirements_-_myQBCC_user_guide.pdf

Frequently Asked Questions: https://www.qbcc.qld.gov.au/financial-reporting-licensees/frequently-asked-questions-minimum-financial-requirements

 

If you require assistance with your annual financial reporting, please contact our office.