QBCC Annual Reporting
Know your obligations for QBCC reporting
The QBCC's annual financial reporting deadline is fast approaching. Queensland Building and Construction Commission requires all license holders to submit annual reports that meet certain requirements depending on the level of category held.
The purpose of the report is to ensure compliance with ongoing minimum financial requirements (MFR) obligations, serving as a financial health evaluation. Essentially, it's to ensure people in the building and construction industry have adequate working capital and net tangible assets to deliver their services in an ongoing capacity.
QBCC are well-equipped to identify non-compliance, so ensuring you lodge your reports on time is essential to avoid triggering regulatory action such as QBCC audits.
Know your QBCC Annual Reporting requirement lodgement dates:
Category 1-7 lodgement period: 1 August 2024 to 31 December 2024.
SC1 & SC2 lodgement period: 1 November 2024 to 31 March 2025.
Ensure you lodge by the due date to avoid delays or penalties.
Are you required to lodge additional documentation?
Before lodging your QBCC Annual Financial Report, it's important to understand specifically what reports you are required to provide. For example, if your revenue has increased by more than 10% above the maximum revenue limit, you'll likely be required to lodge additional documentation.
Speak to your accountant before lodging to ensure you're providing all required documents in one submission to avoid delays and additional expenses.
Depending on your circumstances, you may be required to lodge a Minimum Financial Requirements (MFR) Report or a General Purpose Financial Statement (GPFS). The category you fall into will determine your financial reporting obligations. The higher your turnover, the greater the risk, the more detailed annual financial information is required.
Recent changes to the QBCC's MFR Regulation have introduced new flexibility for certain licensees. Effective 16 February 2024, licensees in Category 3 or Self-Certifying Categories 1 and 2 (SC1 & SC2) are no longer required to provide General Purpose Financial Statements (GPFS).
Instead, these entities may now use Special Purpose Financial Statements (SPFS) to support MFR reports.
These changes aim to reduce the reporting burden on some licensees, but compliance with recognition and measurement standards remains critical.
Note: Licensees in financial categories 4-7 must still provide GPFS for annual reporting and when lodging MFR reports.
Some common reasons licensees in Category 1-7 would need an MFR Report are:
- Applying for a new licence;
- The maximum revenue limit has increased by more than 10%;
- There is a significant change to the business (eg. change of directors or shareholders);
- The QBCC specifically requests it.
How your accountant can help:
To maintain compliance with your QBCC obligations and ensure your licence is not at risk, it's important to use an accountant who specialises in QBCC financial regulations — here at Bonerath & Co., we do just that.
At Bonerath & Co., we are well-versed and experienced in QBCC Licensing, accounting standards and accounting requirements. One of the ways we can help is by testing your financial position to see if you pass QBCC MFR before lodging. Testing before lodgement provides peace of mind and helps to protect your licence.
A final note on the QBCC Annual Reporting regime:
Please ensure you respond to any correspondence from the QBCC or your accountant promptly. This will help limit potential impacts, including delays or penalties, on your business in regard to the annual report — remember, without a licence, all work must stop.
We're here to help
If you need more advice on this issue, please contact our team.
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