QBCC Accountant for Builders and Trades on the Sunshine Coast
QBCC annual reporting, MFR reports and practical accounting for licensed builders and trades, so your licence, your tax and your cash flow stay on track.
Book a free 30-minute consultation
Accounting for QBCC licensed builders and trades
If you hold a QBCC contractor licence, your financial position is part of your licence. The Queensland Building and Construction Commission sets minimum financial requirements (MFR) that apply at all times, and most contractor licensees must report to the QBCC every year. Mentor Tax & Advisory helps builders and trades on the Sunshine Coast meet those obligations, keep their licence category where they need it, and run a business that is profitable and properly structured.
The QBCC minimum financial requirements in brief
The QBCC's MFR framework rests on three measures you must meet continuously:
- Net tangible assets (NTA): broadly, what the business owns minus what it owes, excluding intangible and disallowed assets. Your NTA must be at least $0, and must be high enough to support your maximum revenue.
- Current ratio: current assets divided by current liabilities must be at least 1.
- Maximum revenue (MR): the turnover ceiling your NTA supports for the financial year. It is a cap, not a target.
The QBCC also expects licensees to prepare quarterly management accounts, which is good practice in any case.
Financial categories
Your NTA places you in one of nine financial categories. Per the QBCC:
- SC1: maximum revenue up to $200,000, NTA of $12,000
- SC2: maximum revenue up to $800,000, NTA of $46,000
- Category 1: $800,001 to $3,000,000, NTA of $46,001 to $156,000
- Category 2: $3,000,001 to $12,000,000, NTA of $156,001 to $480,000
- Category 3: $12,000,001 to $30,000,000, NTA of $480,001 to $1,200,000
- Categories 4 to 7: above $30 million, with general purpose financial statements required
Our services for builders and trades
QBCC annual financial reporting
All company licensees must lodge annual financial information, as must individuals in Categories 1 to 7. Individual licensees in SC1 and SC2 do not, unless the QBCC asks. You must lodge even if you earned no revenue. For Categories 1 to 7, lodgment opens on 1 August and is due by 31 December, and the QBCC sends written notice of your reporting day.
Categories 1 to 3 provide a profit and loss statement, balance sheet, aged debtors and creditors listings and a cash flow statement. We prepare these, check your NTA and current ratio before anything is lodged, and can submit through the QBCC Portal as your nominated representative. Read more in our guide to QBCC annual financial reporting.
MFR reports to lift your maximum revenue
Winning bigger jobs can push you past your maximum revenue. The QBCC allows you to exceed it by up to 10% without prior approval. Beyond that, you must apply first with a new MFR report showing your NTA supports the increase. For Categories 1 to 3, an MFR report must be used rather than a self-certified declaration.
The QBCC requires an MFR report to be prepared by a qualified accountant who is independent of the licensee. The financial information must be no more than four months old when the accountant signs, and the report must be given to the QBCC within 30 days of signing. The QBCC says assessment can take up to eight weeks, so we plan the timing with you before a big contract lands. An accountant can also state your NTA at a level that keeps you in the category you actually need.
NTA and current ratio management
Year-end is too late to discover a problem. We review your balance sheet during the year to spot the things that commonly erode NTA or the current ratio: loans to directors or related entities, intangible assets, current debt and slow-paying debtors. Licensees in SC1 to Category 3 must also tell the QBCC if NTA falls by more than 30%. We help you see it coming and plan around it.
Tax, BAS and bookkeeping
Construction businesses juggle progress claims, retentions, subcontractors and materials, which makes clean books essential. We prepare and lodge BAS, manage PAYG and GST, and set up Xero so your figures are QBCC-ready at any time. See our bookkeeping service, our BAS and GST basics guide and our tax returns page.
Business structuring
Sole trader, company or trust: the structure you trade through affects tax, asset protection and how the QBCC assesses your finances. For a trustee licensee, for example, the QBCC combines the revenue of the trustee and the trust, and wants the financial statements of both. We help you choose or review a structure with your licence in mind. Our article on family trusts is a useful starting point.
Cash flow for builders and trades
A healthy current ratio and a healthy bank balance come from the same habits: timely invoicing, realistic job costing and planning for tax. We build simple cash flow forecasts so you can see the impact of new jobs, equipment purchases and tax bills before they happen.
Why Mentor Tax & Advisory
- Experience: Director Blake Land (BCom, AIPA, FNTAA) brings more than 25 years in accounting and tax.
- Registered Tax Agent: TAN 25901938.
- Xero Level 2 Certified: cloud books set up for builders, trades and QBCC reporting.
- Local knowledge: more than 10 years working with Sunshine Coast businesses.
- Direct access: you deal with the person doing the work, not a call centre.
Areas we serve
We work with builders, trades and contractors in Coolum Beach, Noosa, Maroochydore, Mooloolaba, Buderim, Caloundra, Gympie and right across the Sunshine Coast, and with Queensland licensees online.
Book a free 30-minute consultation
Business owners can book a free 30-minute consultation to review their QBCC position, reporting deadline or MFR application. Get in touch or call 0400 074 846.
General information only, based on QBCC guidance current at the time of writing. Requirements can change, so confirm your obligations with the QBCC or with us before relying on them.
Frequently asked questions
When is QBCC annual financial reporting due?
For licensees in financial Categories 1 to 7, annual reporting can be lodged from 1 August and is due by 31 December each year. The QBCC sends written notice of your reporting day. All company licensees must report, even with no revenue, while individual licensees in SC1 and SC2 generally do not. Lodging early gives you time to fix any NTA or current ratio issues.
What is an MFR report and who can prepare it?
An MFR report shows the QBCC that you meet minimum financial requirements for the maximum revenue you want. It is needed for Categories 1 to 7, for example when applying to lift your maximum revenue. The QBCC requires it to be prepared by a qualified accountant who is independent of the licensee, using financial information no more than four months old.
How do I increase my QBCC maximum revenue?
You can exceed your maximum revenue by up to 10% without prior approval. For more than that, you must apply to the QBCC first with a new MFR report, or a declaration for SC categories, plus supporting financial statements showing your NTA supports the higher figure. The QBCC says assessment can take up to eight weeks, so start before you sign the bigger contract.
What are net tangible assets and the current ratio?
Net tangible assets are broadly your total assets less total liabilities, after removing intangible and disallowed assets such as certain related-party loans. They must be at least $0 and enough to support your maximum revenue. The current ratio is current assets divided by current liabilities and must be at least 1. Both must be maintained at all times, not just at year-end.
Do the annual reporting documents have to be prepared by an accountant?
For annual reporting, the QBCC says the financial documents for Categories 1 to 3 do not have to be prepared by an accountant. In practice, many builders use one because errors in NTA or current ratio calculations can trigger QBCC queries. An MFR report, by contrast, must be prepared by an independent qualified accountant. We can prepare and lodge both.
Can you help with tax and BAS as well as QBCC reporting?
Yes. We prepare BAS, income tax returns and year-end accounts for builders and trades, and set up Xero so the same figures feed your BAS, your tax return and your QBCC reporting. Keeping it all with one accountant means fewer surprises, and we can plan structure, cash flow and tax around your licence category.