Maximum Revenue

Your maximum revenue (MR) includes all revenue you receive from the building industry and any other source. After processing your application we let you know what your MR will be for your financial year.

Your MR:

  • is determined by your net tangible assets (NTA), as stated in the financial Declaration or MFR Report you provided. If you provided a Deed of Covenant and Assurance, the assured amount will be added to your NTA to determine your MR.
  • will be issued for your financial year:
  • will apply to you and in combination with your trust or partnership (where relevant).

MR and your business structure

If your business structure is:

Your MR applies to:

An individual – sole trader

An individual only

A company – trading as stand alone company

A company only

A company – trading as part of a group of companies under ASIC Class Order 98/1418 or similar

A consolidated group only

An individual or company in partnership

An individual or company in combination with partnership/s

An individual or Company – acting as trustee

An individual or company in combination

Calculate MR

MR and NTA Calculator

Calculate your MR using the net tangible assets (NTA) stated in your financial Declaration or MFR Report in combination with amounts being assured by way of one or more Deeds of Covenant and Assurance (if relevant).

Calculate revenue between $600,000 and $12 million (the MR will be the lesser of the two calculations):

  • The formula MR = {[(Licensee’s NTA – c) / (d – c)] x (b – a)} + a; or
  • The MR permitted for the type of MFRReport provided

Calculate $12 million and over revenue:

  • Category 1–6 MR = {[(Licensee’s NTA – c) / (d – c)] x (b – a)} + a;
  • Category 7 MR = NTA x 16.67

Increase or decrease your MR

You can increase your MR by up to 10% without obtaining prior approval from us. If you are going to increase your turnover by more than 10%, you must first provide us with a new financial Declaration or MFR Report that supports the increase.

To increase or decrease your turnover to:

References to the Minimum Financial Requirements (MFR) Policy

Scenarios

Project managing

Richard is a project manager for a commercial builder. He is currently managing a $10 million project to build a new supermarket. When stating his revenue, he will include the amounts paid to him directly from the project, not the value of the project.

Buying and selling houses

Suzanne is a builder. Over the past year, she built and sold two speculative dwellings. He also renovated two houses. She lived in one of these houses for six months and then sold both of them. She is currently living in and renovating another property. Suzanne will include the proceeds from the sale of the four houses he built/renovated and sold in his revenue for the financial year.