QBCC licenses – big changes in 2019

The Queensland Building and Construction Commission (QBCC) are strengthening the minimum financial reporting requirements for license holders so the QBCC can more clearly monitor the financial position of licensees and take appropriate action where a licensee may be operating a financially unsustainable business.

From 1 January 2019, all licensees will be required to provide financial information annually to the QBCC (this was the position prior to 2014).  For licensees with a turnover between $800,000 and $30 million, the minimum financial requirements report will need to be substantiated by an appropriately qualified accountant.

Also, if a licensee is relying on a Deed of Covenant, they will need to provide detailed financial information about the Covenantor to the QBCC.

If the turnover of a licensee is below $800,000, they will still be required to provide financial information to the QBCC, however, they will not need to have their information certified by an appropriately qualified accountant.

Licensees with a turnover above $30 million will need to have their financial reports audited.

Licensees will also be required to report a significant decrease in Net Tangible Assets (30% for licensees with a turnover below $30 million or 20% for licensees with a turnover above $30 million).  This will require licensees to monitor their net tangible asset position on an on-going basis.

 

What do I do if I currently hold a QBCC license?

If you currently hold a QBCC license, you will need to check the category of your license.  If your turnover is between $800,000 and $30 million, you will require a minimum financial requirements report prepared by an accountant using your results from 30 June 2019.  If this applies to you, we recommend contacting us as soon as possible on (07) 56656469 to discuss your QBCC reporting requirements.

DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice.  Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information.  We recommend that our formal advice be sought before acting in any of the areas.  The article is issued as a helpful guide to clients and for their private information.  Therefore it should be regarded as confidential and not be made available to any person without our consent,

PPSR charges – is yours about to expire?

he PPSR (Personal Property Securities Register) commenced in January 2012.  Owners of personal property (this is any property other than land, building or fixtures) are able to register a charge over their property for a maximum of 7 year. 

If you registered a 7 year charge on your personal property at the start of the register in January 2012 your charge will expire in January 2019.  There are approximately 120,000 registrations that will require action prior to January 2019 to ensure they remain active.

We recommend that you check the expiry dates of your registered security interests.  The PPSR have a free search tool available for you to check the expiry date of your registered interests:

https://www.ppsr.gov.au/how-get-your-registrations-due-expire-report

It is also important that you review your overall asset protection strategy with your commercial lawyer to ensure that all of your assets are appropriately protected.

We recommend that you speak with your commercial lawyer to seek further advice about your PPSR registrations and the overall protection of your assets.  We work closely with several commercial lawyers.  Please feel free to call us if you would like a referral to one of these lawyers to discuss your PPSR registrations.

DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice.  Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information.  We recommend that our formal advice be sought before acting in any of the areas.  The article is issued as a helpful guide to clients and for their private information.  Therefore it should be regarded as confidential and not be made available to any person without our consent,