Another year, another changing legislation for the building and construction industry.
The new Minimum Financial Requirements (MFR) Regulation for the Queensland Building and Construction Commission (QBCC) licensees came into effect on 1 January 2019. This means you should already be implementing, or at least thinking about how the new legislation should be included in your business framework.
What does this mean for your business?
Essentially, under new building and construction contract regulations, all QBCC licensees who hold a contractor grade licence will be required to meet annual financial reporting obligations.
Read on for how this new regulation may affect you.
Understanding The MFR
Working alongside the already established MFR from 2014, the new amended regulation will support the security of payment initiatives within the building and construction industry.
The new MFR returns the QBCC’s powers to regulate those requirements.
Fortunately, there’s no immediate impact for licensees within the financial categories self-certifying (SC1) to category 3. You will however need to submit your financial information to QBCC by 31 December 2019.
Why is the financial information required? To enable QBCC to determine whether a licensee is experiencing financial distress and act accordingly to mitigate the impact at an earlier stage.
Not sure where your company sits? The QBCC website can show you what licensing category you fall under.
Who is involved?
- Employers – Businesses in the Building and Construction Industry.
- Contractors/Employees – Those employed by businesses in the Building and Construction Industry.
- The State’s Building Regulator – Queensland Building and Construction Commission (QBCC)
- Business Advisors – Queensland Accountants, like Crest Accountants, to guide you with construction accounting requirements.
It’s vital to know where you stand in the midst of the new MFR framework. This can be achieved through understanding the regulation, your responsibilities and asking for help when you need it. QBCC is Queensland’s state regulator of the industry, but it may be an idea to have a separate and unbiased advisor to help you further in understanding your role and requirements.
Who can help?
With over 45 years in helping businesses grow, Crest Accountants are specialists in accounting needs. We’re situated in the local Gold Coast community and are trusted advisors in construction accounting. We use our expertise in helping you understand new and changing legislation in the building and construction industry. For us at Crest, knowing is achieving.
The new MFR 2019 was not introduced to scare businesses, but rather for QBCC to identify potential issues and help you at an earlier opportunity.
Navigating your way through changing building and construction laws and regulations can be challenging. It’s important to know where you stand, what you need to do, regarding financial reporting submission, and who you can trust to advise you further.
Are you a business owner wanting to understand the new MFR? Perhaps you’re a contractor who needs advice on licensing compliance? Whatever your business needs, we can help.
Contact us and book an appointment with Crest Accountants on the Gold Coast to discuss how the new MFR may impact your business today.