Dec 06, 2018

Builders face greater financial scrutiny from January

Builders face greater financial scrutiny from January

Tradies working in the building and construction sector will have greater protection from the impact of company collapses under new financial reporting requirements from January 1, 2019.

Member for Mackay Julieanne Gilbert said the new laws were a key element of the Palaszczuk Government’s landmark security of payment measures.

“This 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 and every time,” she said.

“The Palaszczuk Government is restoring requirements for licensees to report their financial situation to the Queensland Building and Construction Commission annually.”

Mrs Gilbert said the building and construction sector employed more than 230,000 people across Queensland.

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 April – 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,” Mrs Gilbert said.

“There will be further measures to improve accountancy standards and practices.

“These changes have been developed in consultation with the industry to ensure they work well.”

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