Changes to the Minimum Financial Requirements in the Building Industry

What?

The minimum financial requirements are being strengthened and will provide more transparency and enable the Queensland Building and Construction Commission (QBCC) to better detect and mitigate the impact of potential insolvencies and corporate collapses.

How?
Changes are being made in two phases.

Phase 1 will:

Re-introduce mandatory annual reporting for all contractor licensees
Require more stringent reporting of decreases in the assets of higher-risk licensees
Clarify how assets are treated

Phase 2 will:

Introduce higher reporting standards for category 4-7 licensees (larger, higher risk licensees)
Repeal the existing MFR Board Policy and place its provisions in a regulation

When?
Phase 1 began on 1 January 2019 and Phase 2 will begin on 1 April 2019.

Penalties?
Improvements are also being made to the enforcement framework, including new penalties and offences for failing to comply with the requirements. i.e. failing to provide financial information annually or when requested by QBCC.

More?
For more information, please click here, or as always, please feel free to contact Bowden Liberatore offices on 07 3879 3303.