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11 April 2019
Phase two of the Minimum Financial Requirements (MFR) reforms are now in action and will impact your business.
The reforms started from 2 April 2019 and go a step beyond the Minimum Financial Requirement Regulation that was introduced from 1 January this year.
The following came into action from 2 April 2019
- The existing MRF Policy is now revoked and replaced with the MFR Regulation
- As a licensee, you might be required to provide additional information to substantiate deeds and related party loans
- There are now stronger penalties and enforcement action for licensees that do not comply with the new requirements
- Licensees will be required to provide annual financial information. For more information, head to the QBCCCs annual reporting page at qbcc.qld.gov.au/financial-reporting-licensees/annual-reporting
Changes to self-certification category 2 (SC2)
- The SC2 licensee revenue limit has now increased to $800,000
- If you have a turnover of between $600,000 and $800,000 and are relying on a deed of covenant and assurance to meet your net tangible assets (NTA) you can continue to rely on your deed until 31 December 2019
- The minimum NTA required for the SC2 category has increased from $36,000 to $46,000 from 2 April 2019. You have until 31 December 2019 to submit the required self-declaration form to the QBCC that shows how you meet this requirement.
Turnover exceed $30 million? If you’re a category 4-7 licensee, this impacts you:
- Higher reporting standards are now in place for companies turnover over $30 million. If you fit into this category you should have submitted your report by now.
- You are required to notify the QBCC if your NTA decrease by more than 20 per cent by submitting an MFR Report.
To make it easier to submit information, you can upload your reports though the online portal myQBCC.
If you have any questions or advice, contact us.