QBCC adopts MFR regulation amendment easing burden on small licensees

New Minimum Financial Requirements (“MFR”) regulation, from February 2024, allows small licensees to submit Special Purpose Financial Statements (“SPFS”). This change will ease the burden imposed by previous regulations which required General Purpose Financial Statements (“GPFS”).

Effective from 16 February 2024, a significant shift in the MFR regulation brings relief to contractors in financial categories SC1, SC2, 1, 2, and 3, allowing them to revert to simpler financial reporting when submitting MFR reports to the Queensland Building and Construction Commission (“QBCC”).

In July 2021, the Australian Accounting Standards Board (“AASB”) made amendments to accounting standards, impacting the MFR regulation. These changes eliminated the option for certain for-profit entities to prepare SPFS for meeting reporting requirements, including MFR reporting to the QBCC. Consequently, all QBCC licensed contractors in financial categories SC1, SC2, 1, 2, and 3 were required to prepare GPFS for MFR reports, resulting in increased costs for these licensees.

Addressing industry concerns about elevated expenses, the Queensland Government responded by amending the MFR regulation, reinstating the use of SPFS for these licensees. Moreover, contractors seeking to adjust their maximum revenue within the specified financial categories can also benefit from these new provisions.

This revision applies to financial information in MFR reports from the quarter ending 31 December 2023, onward. Importantly, there are no alterations to the annual reporting requirements, ensuring stability in that aspect.

While this change represents progress in addressing industry concerns about elevated expenses, some stakeholders believe that further improvements are necessary to enhance prudential regulation by the QBCC. The industry continues to advocate for a more streamlined and efficient regulatory framework.

If you require assistance with your reporting obligations or would like further information the changes, please contact your usual Mazars advisor, the author or our experts below:

Brisbane – Matthew Green

Melbourne

Sydney

+61 7 3218 3900

+61 3 9252 0800

+61 2 9922 1166

Author: Lara Lonsdale

* mandatory fields

Your personal data is collected by Forvis Mazars in Australia, the data controller, in accordance with applicable laws and regulations. Fields marked with an asterisk are required. If any required field is left blank, it will not be possible to process your request. Your personal data is collected for the purpose of processing your request.

You have a right to access, correct and erase your data, and a right to object to or limit the processing of your data. You also have a right to data portability and the right to provide guidance on what happens to your data after your death. Finally, you have the right to lodge a complaint with a supervisory authority and a right not to be the subject of a decision based exclusively on automated processing, including profiling, that produces legal effects concerning you or significantly affects you in a similar way.

Published date: 23/02/24

All rights reserved. This publication in whole or in part may not be reproduced, distributed or used in any manner whatsoever without the express prior and written consent of Mazars, except for the use of brief quotations in the press, in social media or in another communication tool, as long as Mazars and the source of the publication are duly mentioned. In all cases, Mazars’ intellectual property rights are protected and the Mazars Group shall not be liable for any use of this publication by third parties, either with or without Mazars’ prior authorisation. Also please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice. Content is accurate as at the date published.