As we approach the End of the Financial Year, it is important for operators within the Building & Construction industry to continue with regulatory compliance and financial reporting set by the Queensland Building & Construction Commission.
As such, a reminder to those that you must ensure your entity’s QBCC Minimum Financial Requirements surrounding the Current Ratio and Net Tangible Assets (NTA) are met by 30 June 2021.
Ahead of reporting your financials & figures by 30 June 2021, operators must look consider strategies to position themselves as strongly as possible. These should focus on ensuring a positive Current Asset Ratio – being 1:1 where your current assets are held above your current liabilities.
Consideration should also be given to how to secure a positive Net Asset overall. Licensees must hold NTA of at least $0.
Things such as raising the invoices for services completed prior 30 June could be potential way to secure a positive positioning. Licensees should also focus on reducing down overall liabilities, in view of meeting the current ratio and NTA requirement.
Additionally, to remind you of the Reporting requirements and the associated Net Tangible Assets threshold, we’ve provided the following table below:
|Financial Category||Maximum Revenue||Net Tangible Assets||Required Information||Reporting Date|
|Self-Certification (SC1)||Up to $200,000||$12,000||Declare revenue & Net Tangible Assets via QBCC Portal||At time of Licence Renewal or by 31 December 2021|
|Self-Certification (SC2)||$200,000 - $800,000||$46,000||As Above||As Above|
|Category 1 to Category 3||$800,000 - $30 million||$46,001 - $1,200,000||
Provide the following reports:
|31 December 2021|
So, what are the next steps?
As part of 30 June preparations, it is important to consider your tax planning strategies and options available. This will help to provide guidance and insights into your financial health for tax & QBCC licensing purposes.
By engaging an adviser (such as Archer Gowland Redshaw) to complete a “health-check”, you will gain an improved understanding of your financials, and on-going obligations. As we approach EOFY, we encourage you to reach out to discuss how our team can be of potential assistance.
For More Information
For more information on the QBCC Reporting requirements ahead of month-end, or assistance in guiding you through the compliance process, please contact your Archer Gowland Redshaw adviser or Smiljan Jankovic (Managing Director) on (07) 3002 2699.
The information contained in this article is of a general nature and does not take into account personal circumstances. Before making any decisions based on the factual information contained in this document, please consult with your financial adviser.