Proposed improvements to the Minimum Financial Requirements for licensing in the building and construction industry
The Queensland Government has released the new framework for the proposed improvements to the Minimum Financial Requirements for licensing in the building and construction industry.
The new framework aims to:-
- strengthen reporting requirements;
- provide clarity about what can be included when calculating a licensee’s assets and revenue; and
- improve data quality and availability for the QBCC.
Get ready because Phase 1 is to commence on 1 January 2019 and will:
- re-introduce mandatory annual reporting;
- require larger, higher risk licensees to report decreases in Net Tangible Assets of 20 per cent or more; and
- provide clarity about calculating a licensee’s assets, that is, the exclusion of recreational vehicles and when to include Project Bank Account funds.
Phase 2 will commence later on 1 April 2019 and will implement the remaining reforms to raise the standards of reporting, particularly for larger high risk licensees.
How will this affect you?
If you, as a licensee do not meet the requirements, penalties may apply. Under the Act, the QBCC can place conditions on a licence, or take steps to suspend or cancel the licence. Penalties also apply for providing false or misleading information or refusing to supply financial information at the QBCC’s request.
For more information, please click on here to read the new framework for the Minimum Financial Requirements or if you require any further assistance, please do not hesitate to contact Brendan Bathersby on (07) 5443 4866.