QBCC’s New Guidelines For Building Services License
Your license could be suspended or cancelled if you do not meet the new minimum financial guidelines and reporting requirements introduced by the Queensland Building and Construction Commission
Recently the Queensland Building and Construction Commission (QBCC), formerly the Building Services Authority, (BSA) announced that; effective 1 October 2014, a licensee is no longer required to provide financial information at the time of renewal. Instead, new minimum financial requirements apply and the onus for meeting and reporting on these Minimum Financial Requirements is now placed on the licensee.
Objective of the New Policy
The QBCC information release on the new policy details the following objective:
“The building industry is one of the pillars of the Queensland economy and we want to promote financial viability in business. The new policy requires you to monitor your financial performance, at least quarterly. This aligns with BAS (GST) reporting requirements and will help to foster professional business practice within the industry”.
Impact of the Policy Changes to Licensees
What these changes specifically mean for licensees is they are required to:
- provide the QBCC with updated financial information if the licensee expects to exceed their Maximum Revenue, for the previously reported year, by more than 10% during their current financial year.
- notify the QBCC within 30 days of any decrease in the Net Tangible Assets of the licensee, by more than 30%, from the end of their last financial year.
QBCC has advised the penalty for non-compliance is license suspension or cancellation. Potentially this could have significant financial impacts for any non-compliance.
Advivo Business Advisors and Accountants can help licensees monitor and meet these requirements so their license and income are not at risk. Get in touch with us on 07 3226 1800 or use our Contact Form.