Bancroft tradies working in the building and construction sector will soon have greater protection from the devastating impact of company collapses.
The new financial reporting requirements for licensees to report their financial situation to the Queensland Building and Construction Commission annually will take effect from 1 January 2019.
We are delivering better security for local tradespeople through our landmark security of payment measures.
The financial reporting requirement is the next step in delivering a comprehensive suite of security of payment reforms that ensure subcontractors are paid for the work they do – in full, on time, every time.
The building and construction sector employs more than 230,000 people across Queensland and these reforms will improve prudential oversight for the QBCC to help them identify licensees who may be at risk of insolvency and mitigate the impacts as much as possible.
To allow time for the industry to prepare, the reforms will be implemented in two phases.
Phase 1 sees a return to annual reporting and stricter requirements for larger, higher risk licensees to notify the QBCC of changes to their financial position.
Phase 2 – to take effect from 1 April 2019 – involves a complete transfer of the Minimum Financial Requirements framework to regulation, as well as a new risk-based, targeted reporting system.
This will require licensees with a higher revenue to provide more detailed information to the QBCC.
Licensees within the lowest revenue categories will continue to self-certify, and the threshold for self-certification will be raised from $600,000 to $800,000.