At Pilot, our Property and Development Group is comprised of experienced professional advisors dedicated to assisting clients with financial, organisational and planning strategies for their projects. This includes QBCC licensee compliance advisory.
A new Minimum Financial Requirements (MFR) Framework was released in November 2018, outlining the MFR reforms:
- Re-introducing mandatory annual reporting for all licensees;
- Changing reporting decreases in Net Tangible Assets (NTA); and
- Clarifying how assets are to be treated.
Summary of key changes
Stronger reporting requirements
- Licensees need to:
– provide financial information to the QBCC annually; and
– report significant decreases in Net Tangible Assets (20% for categories 4-7; 30% for other licensees).
More clarity about what can be included when calculating a licensee’s assets and revenue
- Personal recreational and unregistered vehicles can no longer be used to meet minimum asset thresholds.
Improved data quality and availability for the QBCC
- The QBCC now has the ability to obtain independent verification of an MFR Report and to recover costs.
- Any ‘material changes’ made by an accountant to an MFR Report need to be clearly identified and supported by updated financial information.
- If a licensee is relying on a Deed of Covenant and Assurance, they need to provide the QBCC with detailed financial information about the covenantor to show they can honour their agreement.
- Similar requirements apply to related entity loans so the QBCC can assess whether these loans are going to be collectable.
There is also a revised enforcement framework, including a range of new penalties and offences for failing to comply with the requirements. For more detail and the full list of changes in the new MFR Framework, visit www.hpw.qld.gov.au and enter MFR in the Search field.
The next key date for reporting is 31 December 2019 (SC1 – Category 3). For more information on reporting dates, visit www.qbcc.qld.gov.au/financial-reporting-licensees/annual-reporting
For more information or to discuss your QBCC compliance requirements, contact Cain Hammond on [email protected] or (07) 3023 1300.