Important changes affecting the building and construction industry are looming and many companies will need to report by 31 March 2019.
The Queensland Building and Construction Commission (QBCC) has changed the Minimum Financial Requirements (MFR) policy and has reintroduced the requirement for licensees to report financial information annually to the QBCC.
Timeframe for Changes
|Client Category licences||Date to report financial information to QBCC|
|Category 4-7 licences||31 March 2019|
|Category 1-3 licences||31 December 2019|
|Self-certifying licences (SC1 & SC2)||31 December 2019|
- There are harsher penalties for non-compliance, including failing to provide financial information or providing misleading information;
- Increased limit for self-certifying licences from $600,000 to $800,000;
- A requirement to report decreases in net tangible assets: 20% for category 4-7 licences and 30% for all other licences (previously 30% for all categories).
In addition the Project Bank Account regime is still pending for the private sector. This imposes significant obligations on Head Contractors of building contracts including the management of three bank accounts for each project in excess of $1m.
Failure to meet requirements
Penalties for not complying with the MFR have been included in the regulation. Under the Act, the QBCC can place conditions on a licence, or take steps to suspend or cancel a licence.
Penalties also apply for providing false or misleading information or refusing to supply financial information at the request of the QBCC.
For further information and assistance to understand your new requirements, please contact your Pilot advisor or email Daniel Gill on 07 3023 1300.