A Step Towards Building Industry Stability

The Queensland Building and Construction Commission (QBCC) has implemented Minimum Financial Requirements (MFR) regulations aimed at reducing business failures and bankruptcies in the building industry. These regulations are designed to ensure that all building contractors in Queensland maintain viable businesses with sufficient funds to meet specific criteria for their Current Ratio and Net Tangible Assets (NTA).

Mandatory Annual MFR Reports

One of the key requirements of the QBCC’s MFR regulations is the annual lodgement of an MFR Report, which is essential for maintaining a contracting license within the industry. Additionally, licensees may be required to submit these reports at other times during the year if their circumstances change. Such changes could include increased revenue, alterations to their NTA, expansion into new licensed areas, or modifications in business structures.

Compliance and Consequences

Licensed operators obligated to lodge an MFR Report must engage an appropriately qualified independent accountant to prepare and sign the report. Failure to meet MFR reporting obligations can have serious consequences, including license suspension, cancellation, or other restrictions that may significantly impact a licensee’s livelihood.

Recent QBCC Regulatory Changes

Recently, there have been some notable changes to the MFR regulations:

• Contractors with annual revenue under $30 million now have the option to utilise Special Purpose Financial Statements again.
• Contractors can adjust their maximum revenue threshold after the quarter ending 31 December 2023, alongside the adoption of the above change.

The government anticipates that these relaxed rules will offer more cost-effective options for smaller operators to fulfil their MFR reporting obligations.

It’s important to note that there are no changes to the reporting obligations for contractors with revenue greater than $30 million.

By adhering to these regulations, building contractors contribute to a more stable and resilient industry, ensuring the protection of both businesses and consumers alike. Stay informed and compliant to thrive in Queensland’s building sector. For further questions or clarification, contact our Maryborough team at avance today.