Queensland builders making the most of the COVID construction boom may need to update their maximum revenue records with QBCC or risk getting caught out, reminds Bentleys’ Luke Mulheran
House building approvals are at record highs, as Australians turn to home renovations in lieu of overseas holidays, and tap into the Federal Government’s HomeBuilder grant.
But with a surge in activity, Queensland builders may find themselves edging close to or surpassing their maximum revenue (MR) stipulated by the Queensland Building and Construction Commission (QBCC).
According to QBCC, you can exceed your MR by up to 10% without prior approval. Anything more, and you need to provide QBCC with a new financial Declaration or MFR (Minimum Financial Requirements) report that supports your increased revenue, or risk having your licence suspended or cancelled by QBCC.
The QBCC website sets out the following thresholds for MRs and steps to apply to change your QBCC MR:
|Threshold||What to do for QBCC
|$800,000 and under||Complete and return SC1 or SC2 declaration to QBCC
|Over $800,000 and below $30,000,000||Provide QBCC an MFR report categories 1-3 prepared by an independent qualified accountant
|Over $30,000,000||Provide QBCC an MFR report categories 4-7 prepared by an independent qualified accountant
To adjust your maximum revenue in either SC1 or SC2 (under $800,000 MR), you must simply complete and return a declaration found on the QBCC website.
If you are increasing or decreasing between the thresholds over $800,000, you need to engage an independent qualified accountant to prepare your MFR report.
As partners of both Master Builders Queensland and the Housing Industry Association, Bentleys’ accountants regularly advise Queensland building and construction companies across all aspects of QBCC regulations, cash flow, tax, structuring, and business mentoring.
Bentleys’ Associate Director Luke Mulheran says, “It’s great to see builders picking up a tremendous amount of business in recent months.
“But it’s important to remember the building and construction industry in Queensland is one of the most highly regulated industries and it can be hard to stay across the financial reporting side of things if that’s not your area of expertise.”
And the consequences of getting it wrong can be severe, including potentially losing your QBCC licence.
So, be sure to revisit your MR and, if you’re set to exceed (or already have) your MR, make sure you follow QBCC’s guides to update your records.
If your maximum revenue is increasing or decreasing and will land over $800,000, contact us today to prepare your MFR report. Get peace of mind knowing you’re supported by qualified accountants with specialty experience with QBCC and the building and construction industry.
Need help? Contact your Bentleys advisor – we’re here to help you get where you want to be.
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.