There has been an increased level of confusion amongst licensed operators in the building and construction industry over QBCC reporting – What is the reporting process? Who is reported to? What needs to be reported?

 

Agilis CA is here to help explain QBCC reporting, and how we can assist you throughout this process.

seven construction workers standing on white field

 

If you currently hold a QBCC License, it is important you are aware of the two different types of financial reporting’s that help ensure trade businesses have appropriate working capital – Annual Reporting and Minimum Financial Reporting.

 

QBCC Annual Reporting

 

QBCC Annual Reporting is a compulsory annual lodgment based on a categorical license method depending on a business’s annual turnover. This lodgment is made online, via the official QBCC online portal. If you are unsure which license category your business fits under, you can check using the QBCC’s online license search.

Below is a breakdown of the different QBCC license categories. It is important to remember, that for each category there are minimum requirements to be met, including:

  • Ratio of current assets: current liabilities is at least 1:1.
  • You meet the required Net Tangible Assets amount.
  • You do not exceed your maximum revenue amount beyond 10%, without notifying the QBCC.

 

Self-Certifying Category 1 (SC1)

    • Annual turnover is no more than $200,000.
    • Net Tangible Assets of at least $12,000
    • No paperwork or documentation needed if lodging through myQBCC.

Self-Certifying Category 2 (SC2)

    • Annual turnover is more than $200,000 but no more than $800,000.
    • Net Tangible Assets of at least $46,000
    • No paperwork or documentation needed if lodging through myQBCC.

Categories 1 – 3 

    • Annual turnover is more than $800,000 but no more than $30,000,000.
    • Net Tangible Assets cannot decrease by more than 30% from last QBCC Annual Report lodgment and QBCC-accepted figure. The QBCC must be informed if there is a decrease.
    • Following documents must be lodged:
      • Balance Sheet
      • Statement of Cashflow
      • Aged Debtors and Creditors Report
      • Profit and Loss Statement

Categories 4 -7  

    • Your annual turnover is more than $30,000,000.
    • Net Tangible Assets cannot decrease by more than 20% from last QBCC Annual Report lodgment and QBCC-accepted figure. The QBCC must be informed if there is a decrease.
    • Following documents are some that must be lodged:
      • Profit and Loss Statement
      • Balance Sheet
      • Aged Debtors and Creditors Report
      • Statement of Cashflow
      • Signed declaration verifying documented information.

For more information on QBCC Annual Reporting, and the full list of compulsory supporting documents click here.

Please note: Whilst it is not compulsory to utilize your accountant to lodge your Annual Report, both the QBCC & Agilis CA team recommend that you do, as you only have one chance to get the report right.

 

QBCC Minimum Financial Report

 

A QBCC Minimum Financial Report (MFR) report must be lodged by your accountant, and is only required when:

    • Applying for a new license.
    • Increasing your businesses Maximum Revenue Amount.
    • Net Tangible Assets have decreased by more than the license category stated percentage.
    • QBCC requested.
    • Business trustee, director, or shareholder change.

An MFR is not required for Annual Reporting purposes. When lodging an MFR report, the following supporting documents are some that must be included:

    • Profit and Loss Statement
    • Balance Sheet
    • Aged Debtors and Creditors Report
    • Cashflow Statement
    • Financial Statements
    • Signed declaration verifying documented information.

For more information on MFR reporting and the full list of compulsory supporting documents, click here.

 

How Agilis CA Can Help

 

Agilis CA have accountants that specialize in working with trades businesses and the QBCC, who can assist you with any of your QBCC Annual Reporting and/or MFR reporting needs.

Contact Agilis CA today to speak with one of our accountants to help get the best possible outcome with your QBCC reports.

 

Watch our video below, to learn how Agilis CA specializes in working with QBCC clients.