having a qbcc specialist in your corner will make the world of difference to your construction business
As a business owner, you may be in the habit of taking on everything yourself. The best thing you can do is ask for expert help! Find out more by clicking the button below or call us on 1300 667 897!
How we can help
Are you QBCC compliant? With our help, it’s never been easier!
If you operate in the Queensland building and construction industry, you no doubt are familiar with the QBCC and their annual reporting requirements. Our team of QBCC specialists can remove the hassle of QBCC compliance and help you stay on track with requirements, allowing you more time to focus on your business and what you love doing most.
The common issues we see with QBCC reporting are the current ratio and net tangible assets tests. Managing Principal, James Brown, who heads our team of specialist QBCC accountants recommends a thorough review of your financial accounts prior to lodging with the QBCC. James will ensure you comply with the requirements or advise you to amend and fix the problem areas before serious issues arise.
Things to consider...
The current ratio shows the amount of current assets of a business in relation to its current liabilities and helps determine financial sustainability. The minimum current ratio for a licensee is 1:1. This means you must have at least $1 in current assets for every $1 of current liabilities.
The current ratio calculation also depends on your business structure:
- Individuals – personal current assets and current liabilities
- Partnerships – a combination of the partnership’s and the licensed partner’s current assets and current liabilities
- Trusts – a combination of the trust’s and the trustee’s current assets and current liabilities
- Companies – the current assets and current liabilities of the company
Net Tangible Assets (NTA) is the total assets of a business, less any intangible asset. These can be things like goodwill, patents, and trademarks, less all liabilities. Your NTA will determine the maximum revenue (MR) you can earn in the coming year.
Note that the following assets are NOT counted in the calculation:
- personal furniture
- investments or shares in companies that aren’t publicly listed
- investments values using equity accounting methodology
- units in trusts that are not publicly listed
- trade or barter dollars
- assets assured to another licensed entity
- boats, ships, jet skis, planes, helicopters, racehorses and racing cars
- collectors’ items such as paintings, stamps, coins
- contingent assets
- unvested superannuation benefits
- life or income protection insurance policy benefits
You are permitted to exceed your Maximum Revenue (MR) by up to 10 per cent without obtaining prior approval from QBCC. If you believe you will exceed your MR by more than 10 per cent, you need to provide QBCC with either a new financial declaration or Minimum Financial Requirements Report that supports the increase. This must be done prior to exceeding the MR.
If you are planning to increase or decrease turnover over $800,000, one of our QBCC specialists and advisers will need to prepare a Minimum Financial Report for you.