- Participants that have $30 million or over in annual revenue were required to lodge their FY18 financial reports by midnight Sunday 31 March 2019.
- Participants under $30 million in annual revenue are required to submit FY19 reports by 31 December 2019.
With the reporting deadline for companies with revenue of $30m or over having just passed on 31 March 2019, according to the QBCC as at 9 April 2019, at least 18 companies over the $30m revenue threshold were not meeting the minimum financial requirements (MFR’s) to operate in Queensland.
The QBCC has issued “show cause” notices to at least 103 licence holders who have not submitted their financial reports. Licensees who have received show cause notices have been given until 26 April 2019 to provide reasons why they haven’t provided their financials, as required under Queensland law. This will be their last chance to lodge the documents before facing disciplinary action by the QBCC, including possible licence suspension. The question is how many of the under $30m threshold will be ready for their deadline of 31 December?
This is a regulation with significant business consequences for Licence holders. Last month the QBCC temporarily suspended the building licence of a top tier (Category 7) multinational construction giant for not meeting Queensland’s minimum financial requirements under the regulations.
Licencee's need to recognise the importance of getting their reporting right and ensuring their balance sheet and structure is meeting the stated requirements, as we are seeing now that the QBCC has new muscles to flex and intends on doing so. They are starting at the top end of town to ensure the right example is being set when it comes to compliance.
What is required to be lodged?
- a profit and loss statement;
- a balance sheet;
- a debtors and creditors report;
- a statement of cashflows;
- notes to the financial statements containing notes required by the Australian Accounting Standards*;
- a written declaration verifying the information contained in the documents mentioned above*; and
- a description of the measurement, within the meaning of the Australian Accounting Standards, on which the financial statements mentioned above, are based and the accounting policies or reports relevant to those financial statements*.
* (QBCC Financial Category 4 - 7 only)
Alternatively, if you are required to prepare annual reports for ASIC or ASX, a copy of these reports may be lodged to the Commission to satisfy this annual reporting requirement.
Failure to meet the QBCC reporting requirements can result in the suspension of a building license and fines of more than $2,600 for individuals and more than $13,000 for companies, or prosecutions for those that do not submit their reports by the due date.
It is paramount that those in the building industry in Queensland have a robust plan in place to comply with these new obligations by the deadline – and embed this into their ongoing annual reporting and licence renewal.
The information provided to QBCC must be timely and needs to meet the MFR guidelines – so ensure that your net tangible assets are sufficient to support your forecasted revenue over the coming year and the calculations don’t rely on specifically excluded assets.
Where deficiencies exist, contact your advisor to help you consider the options available and provide the QBCC with additional information to maintain your license.
Our article outlines the requirements and other obligations under the new reporting requirements. Click to view or contact one of our industry specialists for further details.