What is maximum revenue?
Maximum revenue is the maximum turnover your business can earn in a financial year.
The QBCC limits your permitted annual maximum revenue based on your financial situation. This is to ensure you can continually pay wages, pay suppliers, pay sub-contractors, service debts and cover any other costs you may incur during the operations of your business.
Alternatively, you may nominate a lower amount of maximum revenue than that which is determined by the QBCC.
Once declared, you are not allowed to increase your maximum revenue by more than 10% in a financial year without obtaining prior approval from the QBCC.
If you want to increase your turnover by more than 10%, you must first provide us with a new financial declaration or MFR report (depending on your MR category) that shows you have enough equity to support the increase.
Calculating your allowable maximum revenue
Maximum revenue for a licensee is calculated using:
- their net tangible assets (total assets minus total liabilities), and
- any other assets promised by a third party (through a deed of covenant). The assets from a covenantor, assured through a deed of covenant and assurance, are added together with the licensee’s net tangible assets, to provide the maximum revenue amount for the licensee.
What income counts as annual revenue?
The annual revenue for the reporting year includes the total income a licensee receives. This includes income from:
- the building and construction industry
- any other source
- from within Queensland, interstate and overseas
- BUT EXCLUDES any personal wages and salary a licensee receives.
Recapping, the total income for a financial year includes all income received by the licensee, regardless of whether it is earnt in Queensland and/or is related to building or construction.
In the case of a partnership, the revenue is to be a combination of the revenue of:
- the licensee and
- the partnership in combination.
In the case of a trustee, the revenue is to be a combination of the revenue of:
- the trustee and
- the trust.
Case study—revenue from 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.
Case study—revenue from buying and selling houses
Suzanne is a builder. Over the past year, she built and sold 2 speculative dwellings. She also renovated two houses. She lived in one of these houses for 6 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 she built/renovated and sold in her revenue for the financial year.
Calculate your maximum revenue
How much revenue can you earn based on your current NTA?
Financial categories (MR)
Your calculated maximum revenue, based on your accepted net tangible asset position, will place you into 1 of 9 financial categories (see table below).
Your licence or financial category is NOT the maximum revenue amount set on your licence - it is just a range used to calculate your licence renewal fee and determines the level of financial information required to be provided to QBCC. The licence category is the information reflected on your licence. You can use our licence search to check your category - search on QBCC’s website - this is the only public information we release in relation to your financial position.
Your maximum revenue which is calculated on your net tangible asset position is the specific dollar amount you are capped at turning over or earning each financial year, and the specific dollar amount set will be within that licence category range.
Your maximum revenue amount can only be updated by making an application to the QBCC and providing the required financial documentation (which usually consists of an MFR Report and signed financial statements).
| NTA | Maximum revenue | Financial category |
|---|---|---|
| $12,000 | Up to $200,000 | SC1 |
| $46,000 | Up to $800,000 | SC2 |
| $46,001 - $156,000 | $800,001 - $3,000,000 | Category 1 |
| $156,001 - $480,000 | $3,000,001 - $12,000,000 | Category 2 |
| $480,001 - $1,200,000 | $12,000,001 - $30,000,000 | Category 3 |
| $1,200,001 - $2,400,000 | $30,000,001 - $60,000,000 | Category 4 |
| $2,400,001 - $4,800,000 | $60,000,001 - $120,000,000 | Category 5 |
| $4,800,001 - 14,400,000 | $120,000,001 - $240,000,000 | Category 6 |
| >$14.4M | >$240M NTA | Category 7 |
How to adjust your maximum revenue
You can exceed your MR by up to 10% without obtaining prior approval from us.
If you are going to exceed your MR by more than 10%, you must first provide us with a new financial declaration or MFR report that supports the increase.
If your financial position changes you may need to adjust to a lower maximum revenue category.
Below outlines the process for adjusting your maximum revenue based on your financial category.
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Firstly you must declare your new financial position.
Download and complete the relevant declaration:
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Then you must apply to us to have your allowable maximum revenue adjusted.
Download and complete the application form:
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If downgrading from Cat 1-7 to a SC1 or SC2 licensee (SC1 or SC2), you must also provide:
- Application to change of maximum revenue form and;
- MFR Declaration for Maximum Revenue $200,000 (SC1) or $800,000 (SC2) and;
- A profit and loss and balance sheet for the most recent quarter ending (ie either 30 June, 30 September, 31 December, or 31 March). There is no 4 month age requirement for this information.
- Please note that SC1 and SC2 licensees can not rely upon deed of covenant and assurance assets being assured to meet the net tangible asset requirement (only categories 1 to 7 can rely upon assured deed amounts).
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You will need to provide us with the completed:
- MR application form
- MFR declaration.
You can lodge it with us:
- in person at a service centre
- by mail
- through our online form when logged in to myQBCC.
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You will need to provide us with an MFR report that demonstrates you can meet the minimum financial requirements for the proposed maximum revenue.
If downgrading from from Cat 1-7 to a SC1 or SC2 licensee (SC1 or SC2), you must also provide:
- Application to change of maximum revenue form and;
- MFR Declaration for Maximum Revenue $200,000 (SC1) or $800,000 (SC2) and;
- A profit and loss and balance sheet for the most recent quarter ending (ie either 30 June, 30 September, 31 December, or 31 March). There is no 4 month age requirement for this information.
Learn more about:
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Then you must apply to us to have your allowable maximum revenue adjusted.
Download and complete the application form:
Change to maximum revenue application form (PDF, 63KB)
If downgrading from from Cat 1-7 to a SC1 or SC2 licensee (SC1 or SC2), you must also provide:
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You will need to provide us with the completed:
- MR application form
- MFR report
- supporting financial information.
You can lodge it with us:
- in person at a service centre
- by mail
- through our online form when logged in to myQBCC.
What happens next?
Please allow for up to 8 weeks for us to assess your application and financial information.
We will inform you by email if you application has been successful.
