QBCC Commissioner Anissa Levy says 170 SC1 and SC2 company licensees were given up to four warnings to lodge their annual financial information by 31 March 2022.
“Queenslanders expect the QBCC to take action against those tradies who aren’t complying with the law,” Ms Levy says.
“The majority of licensees have done the right thing and they’re helping to improve the industry.
“Those who continue to flout the law are in the firing line for potential regulatory action that starts with licence conditions and in this case ended with 170 licence cancellations.”
The 170 licensees are in category SC1, with an annual allowable turnover of up to $200,000 and category SC2 (maximum revenue up to $800,000).
Ms Levy says the annual financial reporting requirements help the QBCC to monitor the financial viability of these licensees.
“The process provides the QBCC with a snapshot of the licensee’s financial health and means we can step in sooner if there is a risk that the licensee is operating beyond their means,” she says.
“The licensees only need to provide us with a three-page form which captures high-level financial information from 30 June 2021, so that we can do an assessment of their financial situation.
“The benefit to the industry is that subcontractors and suppliers can be more assured they’re doing business with viable operators.
“It’s also a huge benefit for home owners and consumers who are looking to engage tradespeople.
“If the QBCC can weed out the unviable operators, it means consumers are more likely to hire someone who will be able to complete the contract and not go into insolvency.”
The 170 cancelled companies represent less than 1% of all SC1 and SC2 licensed companies in Queensland.
Background
Annual financial reporting is required under the Minimum Financial Requirements (MFR) Regulation 2018.