Have you Lodged your Annual Financial Report with the QBCC?

Licensees must have sufficient working capital to meet Minimum Financial Requirements. Annual financial reports have been introduced to check the financial strength of contractor grade licensees in Queensland.

Annual reporting was originally due by 31 December 2019, however, according to the QBCC it seems several licensees did not meet this deadline. In keeping with what the QBCC has described as a considered, cascaded approach to regulatory action, that deadline was extended to 31 December 2020. However, the QBCC may take regulatory action such as a licence condition of no new work until the licensee complies with the annual reporting requirement. Whilst it appears the annual reporting function provides for licensees to upload information themselves, where possible it would be wise to discuss the situation with their Accountant prior to doing so.

For those who have done the right thing and completed their annual reporting in categories SC1 to Category 3, it is understood the QBCC are allowing until 31 December 2020 for certain licensees to demonstrate they have the necessary working capital before taking any regulatory action where there may be a deficiency identified. Whilst that deadline is still some 5 months away, we are now on the home stretch towards the end of 2020 so time is of the essence.

This is a timely reminder to talk to any clients who may fit into one of the above categories, to urgently review their situation. The earlier an issue is identified, then invariably the more options that are generally available to develop a strategy that is as robust as possible to improve the prospects of survival. It is also the opportune time to conduct a general health check of your business, no matter what industry you are in.