QBCC adopts MFR regulation amendment easing burden on small licensees
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
Published date: 23/02/24
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