Annual financial reporting
Annual reporting is a financial health check QBCC contractors undertake each year as a part of their ongoing minimum financial requirements (MFR) obligations.
Contractors must report annually
All contractor-type licensees must submit annual reporting to demonstrate on-going compliance with minimum financial requirements. As the holder of a contractor licence, you are required to:
- lodge your annual financial information even if you didn't earn any revenue during the financial year
- continuously maintain the required level of net tangible assets (NTA) to cover the maximum revenue (MR) limit of your financial category.
The only exceptions to this are contractors who meet the criteria for an exemption.
Hold both a company and individual contractor licence?
If you hold both a company and an individual contractor licence, you need to submit annual financial information for both the
- company contractor licence
- individual contractor licence (even if your individual turnover is $nil.)
Corporate Group requirements—for when providing an annual report
Applies if a licensed company is part of a corporate group.
The licensed entity can elect to provide its’ financial information on a standalone basis, or on the corporate group’s financial position.
What is a corporate group?
A corporate group means all corporations that are a party to the same deed of cross guarantee, also referred to as a closed group.
There are different types of consolidation:
- Consolidated - where all entities’ financial information is included for the consolidation of the group
- Closed group - where only the entities’ financial information who are part of the same deed of cross guarantee is included.
We can only accept the closed group consolidation for reporting purposes under the MFR Regulation. Therefore, if the corporate group's financial information is being relied upon for an annual report, then the financial statements must be based on the closed group only i.e. only entities in the group that are a party to the same deed of cross guarantee.
Required information
As a contractor, you are required to lodge key financial information such as your profit and loss details, and assets and liabilities for the most recent reporting year to demonstrate you are still financially sustainable.
The type of financial information you need to provide for annual reporting is based on your financial category. This is something you nominate as part of the licence application process.
There are 9 financial categories, each defining the maximum revenue you can generate in a year and the corresponding net tangible assets that is needed to support this revenue over this time.
Contractors with structures such as a partnership or trust in place must provide further information to demonstrate how these financial relationships are managed. Read our extra notes about MFR accounting for other financial arrangements.
Specific reporting requirements for each financial category are listed below in the steps of
Not using your contractor licence?
If you have a QBCC contractor licence and don't personally contract for building work, you may want to consider changing your licence type to a nominee supervisor or other licence type.
A nominee supervisor licence allows you to supervise on behalf of other QBCC licensed contractors of the same licence class or be the nominee for a company, just as your contractor licence does. As a nominee supervisor and you wish to personally perform building work, you need to ensure you also hold any required occupational licences for that class.
Being the holder of a nominee supervisor licence means you don't have to
- meet minimum financial requirements (MFR)
- lodge annual financial reporting.
Learn how to change your licence-type.
When it must be lodged
You need to lodge your financial information by the required reporting day. The dates for lodgement of annual reporting each year is:
- for SC1 and SC2:
- lodge from—1 November
- due by—31 March
- for categories 1-7:
- lodge from—1 August
- due by—31 December.
You will receive written notice from us of your annual reporting day confirming the due date.
We encourage you to lodge your annual financial information early to avoid the last-minute rush and ensure you have plenty of time to ask questions and seek clarification if you need to.
How to submit annual reporting
The quickest and easiest way to submit annual financial reporting is online via the myQBCC portal.
If you cannot access myQBCC can download manual forms from the related resources section at the bottom of the page.
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This is the reporting process for licensees in the financial categories listed below:
Financial category Maximum revenue Net tangible
assetsSC1 Up to $200,000 $12,000 SC2 Up to $800,000 $46,000 -
In the myQBCC online portal you will need to enter your:
- profit and loss figures (this is your revenue and expenses)
- assets and liabilities figures.
You don’t need to send us any paper work, however you may send us hard copy documents if you are unable to use the online portal.
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If you would like a third party, such as your accountant, to submit this information on your behalf, you will need to ensure they have been added as a nominated representative and assigned the appropriate permissions in myQBCC.
See myQBCC help guide—adding a Nominated Representative to your account for more information.
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- Login or register for myQBCC
- Click Financial reporting tab in the main menu
- Select Submit annual reporting from the drop down menu
- Click Action next to the licence you are submitting annual reporting for
- Select the category for your financial category—SC1 and SC2 to begin.
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Review your contact details are correct before you proceed to the next step.
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Enter your:
- profit and loss figures (this is your revenue and expenses)
- assets and liabilities figures.
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Agree to the declaration and submit form.
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This is the reporting process for licensees in the financial categories listed below:
Financial category Maximum revenue Net tangible
assetsCategory 1 $800,001 - $3,000,000 $46,001 - $156,000 Category 2 $3,000,001 – $12,000,000 $156,001 - $480,000 Category 3 $12,000,001 - $30,000,000 $480,001 - $1,200,000 -
In the myQBCC online portal you will need to enter your figures in and provide a copy of relevant paperwork:
- profit and loss statement
- balance sheet (assets & liabilities)
- aged debtors and creditors listings
- statement of cash flow.
These documents do not have to be prepared by an accountant.
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If you would like a third party, such as your accountant, to submit this information on your behalf, you will need to ensure they have been added as a nominated representative and assigned the appropriate permissions in myQBCC.
See myQBCC help guide—adding a Nominated Representative to your account for more information.
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- Login or register for myQBCC
- Click Financial reporting tab in the main menu
- Select Submit annual reporting from the drop down menu
- Click Action next to the licence you are submitting annual reporting for
- Select the category for your financial category—Categories 1-3 to begin.
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Verify your contact details and the licensee details are correct before proceeding to the next step.
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Enter the following financial information:
- profit and loss figures (this is your revenue and expenses)
- balance sheet details
- statement of equity
- statement of cashflow.
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Upload a copy of relevant paperwork:
- profit and loss statement
- balance sheet (assets & liabilities)
- aged debtors and creditors listings
- statement of cash flow
- trust financial statements (if applicable)
- partnership financial statements (if applicable).
These documents do not have to be prepared by an accountant.
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Download and complete the written declaration and sign it.
Upload the declaration back into the portal.
Submit the form.
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This is the reporting process for licensees in the financial categories listed below:
Financial category Maximum revenue Net tangible
assetsCategory 4 $30,000,001 - $60,000,000 $1,200,001 - $2,400,000 Category 5 $60,000,001 - $120,000,000 $2,400,001 - $4,800,000 Category 6 $120,000,001 - $240,000,000 $4,800,001 - 14,400,000 Category 7 >$240M >$14.4M -
In the myQBCC online portal you will need to enter your figures in and provide a copy of relevant paperwork:
- if you are an ASIC reporting entity—a copy of the report or documents lodged with ASIC if provided within 30 days of ASIC lodgement
OR
- profit and loss statement
- balance sheet (assets & liabilities)
- aged debtors and creditors listings
- statement of cashflows
- notes to the financial statements
- description of the measurement (basis and accounting policies relevant to those statements).
For category 4-7 licensees, these must be general purpose financial statements.
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If you would like a third party, such as your accountant, to submit this information on your behalf, you will need to ensure they have been added as a nominated representative and assigned the appropriate permissions in myQBCC.
See myQBCC help guide—adding a Nominated Representative to your account for more information.
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- Login or register for myQBCC
- Click Financial reporting tab in the main menu
- Select Submit annual reporting from the drop down menu
- Click Action next to the licence you are submitting annual reporting for
- Select the category for your financial category—Categories 4-7 to begin.
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Review your contact details and the licensee details are correct before you proceed to the next step.
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Indicate if you are an ASIC/ASX reporting entity.
Enter the following financial figures:
- profit and loss statement
- balance sheet (assets & liabilities)
- statement of equity
- statement of cash flow.
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If you are required to prepare annual reports for ASIC or ASX, a copy of these reports may be submitted to satisfy this annual reporting requirement.
OR
If you are a non-reporting entity, you will need to provide the following:
- profit and loss statement
- balance sheet
- aged debtors and creditors report, with details of each debtor categorised by age of their debt
- statement of cashflows
- any accounting note to the documents above
- written declaration verifying the information contained in the documents mentioned above
- description of the measurement, within the meaning of the Australian Accounting Standards, on which the financial statements mentioned above are based, and the accounting policies or reports relevant to those financial statements.
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Download and complete the written declaration and sign it.
Upload the declaration back into the portal.
Submit the form.
Penalties for non-compliance
It is an offence for a contractor licensee to not comply with their annual financial reporting obligations.
Need help?
For more information about how to submit annual reporting read our:
Guide to annual financial reporting (PDF, 404KB)
Contact us if you have questions or need help with submitting your annual reporting.
Annual reporting deadline
31 March—for SC1 and SC2
31 December—for categories 1-7
