The QBCC (Queensland Building and Construction Commission) is sending a reminder that the 31 December reporting date for categories 1-7 is less than a month way. With the deadline fast approaching you are encouraged to lodge to ensure you uphold your MFR obligations.  All contractors must report, every year, on time.
 
See the QBCC article below highlighting the most common annual reporting enquiries they receive and their responses to them.

Most common annual reporting enquiries answered 

Annual report does not equal MFR report

Annual reporting
 

► Is a quick financial health check. Licensees must report, every year on time. 

► In most instances, is satisfied with internal management accounts or a three-page annual reporting form. No accounting standards are required so licensees can do this themselves.
 
► For licensees operating medium to large scale operations (cats 1-3 and 4-7) the 31 December reporting date allows sufficient time to prepare EOFY documents while ensuring they are still current enough for assessment purposes.

MFR report
 

► Is only required in certain circumstances, such as a new licence application, decreasing your NTA or increasing the maximum revenue, or if the licensee is audited 

► Demands prescribed accounting standards and so must be produced by a qualified accountant 

► Financial statements cannot be any older than 4 months at the time the accountant signs off on them.   

       
Contractor licensees always report

Individuals and companies
If a licensee holds an individual Contractor licence and is the responsible person for a company Contractor licence (eg a director) they must provide annual reporting in both instances. 

Nil revenue
If a Contractor licence is held by a licensee who: 

• is retired 
• not currently trading in the building industry, or
• an employee, or working on wages 

annual reporting still needs to be completed. Under these circumstances the revenue for the period would be $0.
 
Other circumstances
If a licensee has been: 

• trading less than a year, or
• suspended from trading for part of the year

they still need to report and provide details of the revenue they have generated in the time they have worked over the relevant reporting period.
 
Licensees may wish to apply for a new licence type (without MFR obligations). For example, a Nominee supervisor licence allows a licensee to be an employee for a licensed company. Note: this licence does not allow licensees to personally contract or subcontract to carry out building work.
 

 
Maximum revenue changes

Annual reporting lodgements are not used to upgrade or downgrade a licensee’s maximum revenue or change licence categories.  The financial information for annual reporting purposes is based on the most recent reporting year and therefore can be outside the 4 month age rule.
 

Trust Structures Webinar

The QBCC has provided a recording of their recent trust structure webinar here . Read the answers to the Questions not able to be answered during the webinar here.

Want to know more?

Contact QBCC at QBCC.qlg.gov.au or email us at Robert Goodman Accountants at reception@rgoodman.com.au . Brought to you by Robert Goodman Accountants.