Queensland Consolidated Regulations

QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION (MINIMUM FINANCIAL REQUIREMENTS) REGULATION 2018

- Made under the Queensland Building and Construction Commission Act 1991
- As at 1 July 2024
- Reg 218 of 2018

TABLE OF PROVISIONS

   PART 1 - PRELIMINARY

   1.      Short title
   2.      Commencement
   3.      Main purpose
   4.      Definitions
   4A.     Reference to licensee includes reference to applicant
   4B.     Meaning of prescribed accounting standard

   PART 2 - EXEMPTIONS

   5.      Exemption for holders of particular classes of contractor’s licence
   6.      Exemption for holders of builder—project management services class of contractor’s licence
   7.      Exemption for special purpose vehicles

   PART 3 - REQUIREMENTS FOR PREPARING AND GIVING INFORMATION

           Division 1 - General requirements

   8.      Requirements for information or documents
   8A.     Requirements for particular information—group companies

           Division 2 - Information to accompany applications

   8B.     Particular information must accompany applications

           Division 3 - Financial information

   9.      What is financial information for a licensee
   9A.     Licensee must give commission financial information
   10.     Licensee’s annual reporting day
   11.     Licensee must give commission copies of particular reports

           Division 4 - MFR reports

   11A.    Licensee must ensure MFR report is prepared by qualified accountant
   11B.    Requirement to give replacement MFR report
   11C.    Information contained in MFR report must be current
   11D.    Requirements for MFR report for particular licensees

           Division 5 - Additional requirements

   11E.    Licensee must keep internal management accounts
   11F.    Licensee must give commission information about significant change to business
   11G.    Commission may require category SC1 or SC2 licensees to give MFR report

   PART 3A - LICENSEE CATEGORIES

   11H.    Categories
   11I.    Restriction on holders of builder contractor’s licenses

   PART 3B - MAXIMUM REVENUE

   11J.    What is a licensee’s maximum revenue
   11K.    Working out calculated maximum revenue
   11L.    Licensee’s obligation if actual revenue may exceed maximum revenue
   11M.    Application to change maximum revenue
   11N.    Commission may reduce maximum revenue
   11O.    Working out actual revenue—particular classes of licensee
   11P.    Working out actual revenue—trustees, partnerships or group companies
   11Q.    Amounts to be disregarded for working out actual revenue

   PART 4 - NET TANGIBLE ASSETS

           Division 1 - Requirements for holding net tangible assets

   12.     Requirement to hold minimum amount of net tangible assets

           Division 2 - When licensee must give information

   13.     Licensees must give commission information about particular decreases in net tangible assets

           Division 3 - Working out net tangible assets

   14.     Meaning of net tangible assets of a licensee
   15.     Working out licensee’s assets
   16.     Working out a licensee’s liabilities
   17.     Working out a licensee’s disallowed assets
   17A.    Working out net tangible assets for group companies

           Division 4 - Deeds of covenant and assurance

   17B.    Amounts under deed of covenant and assurance that may be included as assets of licensee
   17C.    Who is eligible to be covenantor under deed of covenant and assurance
   17D.    Requirement to give commission information—amount under deed of covenant and assurance no longer included as asset
   17E.    Requirement to give commission information—revocation of deed of covenant and assurance
   17F.    Requirement to give commission information—change to deed of covenant and assurance

   PART 4A - CURRENT RATIO

           Division 1 - Requirement to maintain current ratio of 1 or more

   17G.    Licensee must maintain current ratio of 1 or more

           Division 2 - Working out current ratio

   17H.    What is a licensee’s current ratio
   17I.    Working out current ratio for trustees, partnerships or group companies

   PART 4B - PROFESSIONAL INDEMNITY INSURANCE

   17J.    Licensee must maintain professional indemnity insurance
   17K.    Minimum standard of professional indemnity insurance
   17L.    Commission may waive professional indemnity insurance requirements
   17M.    Licensee must notify consumers of waiver

   PART 4C - MISCELLANEOUS

   17N.    Requirement to pay debts
   17O.    Commission must give licensees notice of particular matters
   17P.    Commission may require valuation of asset
   17Q.    Commission may audit financial information and MFR reports and recover costs
   17R.    Expiry of policy—Act, sch 1, s 76

   PART 5 - TRANSITIONAL PROVISIONS

           Division 1 - Transitional provisions for SL No. 218 of 2018

   18.     Minimum financial requirements—continued MFR policy is prescribed
   19.     Relationship of this regulation with continued MFR policy
   20.     Application of s 8 to existing licensees
   21.     Commission must notify existing licensees of annual reporting day
   22.     Application of pt 4 to existing licensees

           Division 2 - Transitional provisions for Queensland Building and Construction Commission (Minimum Financial Requirements) and Other Legislation Amendment Regulation 2019

   23.     Definition for division
   24.     Continuation of expired MFR policy for particular applications
   25.     Continuation of maximum revenue under expired MFR policy
   26.     Continuation of minimum net tangible asset requirement for particular licensees
   27.     Re-categorisation of particular category 1 licensees as SC2 licensees
   28.     Particular accountants taken to be qualified accountants

           Division 3 - Transitional provision for Queensland Building and Construction Commission (Minimum Financial Requirements) Amendment Regulation 2024

   29.     Particular MFR reports required to be given before commencement
           SCHEDULE 1
           SCHEDULE 2
           SCHEDULE 3