Your QBCC licence lives and dies by two numbers

The financial requirements behind that licence aren't complicated, but they catch builders out more often than they should. Here's a plain-language breakdown of what the QBCC actually needs from you, and what's recently changed.

What the QBCC is checking

To hold a contractor-type licence, you need to demonstrate a financially sustainable business with an appropriate level of working capital. These are the Minimum Financial Requirements, or MFR.

Two numbers matter most.

Net Tangible Assets (NTA) is the value of your business assets minus liabilities. The required NTA is linked to your maximum revenue. As an example, a business with $1.2 million in turnover needs at least $66,000 in NTA.

The current ratio compares what you can access quickly against what you owe short-term. It needs to sit at 1:1 as a minimum, meaning for every dollar you owe, you need a dollar available.

If either of those slip, you have a problem with your licence, not just your accounts.

What's changed recently

From 7 March 2025, individual sole trader licensees in categories SC1 (up to $200k revenue) and SC2 (up to $800k revenue) no longer need to submit annual financial information to the QBCC. That cuts a real paperwork burden for smaller operators.

But here's the catch. The underlying financial requirements haven't gone away. The QBCC retains its existing powers and can still require a report if it has concerns about your financial position. And certain events will still trigger a full MFR report regardless of your category.

Those triggers include increasing your maximum revenue beyond 10% in a financial year, a significant change to your business structure, or a change in directors, shareholders, or trustees.

Where builders get caught

Growing fast is one of the most common risks. You win a bigger contract, revenue climbs, and you push past your maximum revenue limit without realising it. The QBCC notices before you do.

The other issue is NTA erosion. A bad run of projects, a few slow debtors, or a distribution that strips cash out of the business can quietly drop your NTA below what your licence requires. By the time it shows up in the numbers, you're already exposed.

What to do

Know your category and what it requires. Review your NTA and current ratio against your actual turnover before the end of the financial year. If you're growing, plan the revenue increase and lodge the right report with the QBCC before you breach the limit, not after.

If you've had a change in structure recently, check whether that triggered a reporting obligation.

How FTA helps

FTA Accountants work with builders and contractors across Queensland on QBCC compliance. We prepare MFR reports, review your financial position against your licence category, and flag issues before they become QBCC problems.

Book a chat with Rob today.
📞 07 5409 2300
✉ info@ftaaccountants.com.au