The Queensland construction industry has undergone a major shake-up in recent years aimed at shoring up confidence in the sector.
The measures, triggered by a 2016 review of the industry, have effectively beefed up the powers of the Queensland Building and Construction Commission (QBCC) and are aimed at protecting the interests of sub-contractors, business suppliers and property buyers.
While new measures boosting the enforcement powers of the QBCC have been introduced in stages since 2017, this year marks one of the most significant changes to the sector in the past five years.
Builders, whether companies or individuals, have always been required to meet minimum financial requirements to obtain or renew their building licences.
However, now they are subject to an annual review by the QBCC to ensure that they adhere to those requirements year in and year out. The review applies to builders across the board, large and small, with a heavy focus on net tangible assets (NTA) and any changes to the NTA that must be reported.
Making things even more complicated, the QBCC is also cracking down on the quality of assets being reported by licenced builders. That means recreational vehicles such as dirt bikes and golf carts are no longer permitted to be included in calculating a builder’s minimum asset base.
Builders may have already received letters from the QBCC informing them of their obligations to submit a review of their financial position before December 31, 2019.
Rest assured that the team at MWM is aware of these letters and the changing requirements, with some of us recently attending a seminar geared towards accountants and advisors in this space.
There is no doubt that the changes have increased the compliance regime for the construction industry.
All these changes have added to the complexity of doing business in the construction sector, and the need for the best professional advice.
The team at MWM has examined the changes closely and we will be making contact with the affected clients over the coming months to discuss the requirements and prepare the submission of information with you.
However, if you have any questions or concerns please contact a team member in the office – mwmadvisory.com.au/contact