The new reporting requirements are now in place and you will be required to submit your 2019 Financial Statements and other reports to the QBCC by 31 December 2019.
Changes to the Minimum Financial Requirements have been implemented in two stages.
- began on 1 January 2019
- re-introduced mandatory annual reporting for all licensees
- changed reporting decreases in Net Tangible Assets
- clarified how assets are to be treated.
- began on 2 April 2019
- introduced higher reporting standards for category 4-7 licensees, along with the remainder of the reforms.
What does this mean?
It is imperative that you co-ordinate with us to complete your 2019 tax work well before this date.
- Licensees may be required to provide additional information to substantiate deeds and related party loans;
- Increased penalties and enforcement action for licensees that do not comply with the new requirements;
- Licensees will be required to provide annual financial information.
Changes to self-certification category 2 (SC2)
- The SC2 licensee revenue limit has now increased to $800,000;
- If you have a turnover of between $600,000 and $800,000 and are relying on a deed of covenant and assurance to meet your net tangible assets (NTA) you can continue to rely on your deed until 31 December 2019;
- The minimum NTA required for the SC2 category has increased from $36,000 to $46,000 from 2 April 2019.
- You have until 31 December 2019 to submit the required self-declaration form to the QBCC that shows how you meet this requirement.
The MFR Regulation contains stronger reporting requirements requiring licensees to report significant decreases in Net Tangible Assets (NTA).
- For licence categories SC1, SC2 and Categories 1-3, the current reporting requirements will continue.
- That is, you are required to report (via a declaration for SC1 and 2 and a report for categories 1-3) where your NTA position decreases by more than 30% below your most recent QBCC accepted NTA position.
- For licence categories 4-7, there are now higher reporting standards.
- The reporting requirements (to provide an MFR Report) apply where your NTA position decreases by more than 20% below your most recent QBCC accepted NTA position.
The following table provides a summary of your annual reporting requirements.
Source – Queensland Building & Construction Commission