QBCC Maximum Revenue – are you complying?

Contractor / builder licensees are required to meet minimum financial requirements to obtain and continue to hold a QBCC license.

As a result of minimum financial reporting, the QBCC can assess whether licensees are exceeding their maximum revenues (‘MR’).

Maximum revenue – what is it?

Your MR is the greatest amount you can turn over you for your reporting year before needing to apply to the QBCC for an increase.  It includes all revenue you receive from the building industry and any other source.

You may nominate a MR amount providing it is less then the calculated maximum revenue.

Be aware of your MR amount and monitor your finances to ensure you do not unwittingly exceed it.

Purpose

The premise behind MR is that you should have the financial capacity to manage the projects that you take on.  Those that do not may result in insolvency which has an adverse impact on the industry.

How it is calculated

Your MR is determined by your net tangible assets (‘NTA’), as stated in the financial declaration or minimum financial report (‘MFR’) you are required to lodge with the QBCC.

If you provided a Deed of Covenant and Assurance, the assured amount will be added to your NTA to determine your MR.

The requirements

You can exceed your MR by up to 10% without first obtaining approval from the QBCC.

However, if you are going to exceed your MR by more than 10%, you must first apply to the QBCC.  Your application will need to include a new financial declaration or MFR report that supports the increase.  Importantly, you need to make this application before your revenue exceeds the maximum amount.

You should be regularly checking your financials to ensure you are not unwittingly exceeding your MR.

Failure to comply

The QBCC has power to suspend or cancel your license for failure to comply.  If you receive a notice to suspend or cancel your license from the QBCC, you should seek advice immediately.

The consequences of a suspension or cancellation of your QBCC license can be dire for your business.

If you require legal advice about any matter raised in this article, please contact us on (07) 5458 6855 or email mklein@kleinlegal.com.au.

Unpaid Superannuation

Nominee Supervisor
Obligation to Pay Super

Employers have an obligation to pay super on behalf of their eligible employees, in addition to wages and salaries.

All employees are entitled to be paid super by their employer including casual employees providing that they: –

  1. earn more then $450 (before tax) in a single calendar month and they are at least 18 years old; or
  2. they work more than 30 hours per week and are under 18 years old; or
  3. they are employed as a domestic / private worker.
Failure to Pay Super

Despite the requirement, there are instances where your employer may fail to pay super on your behalf.

Your should regularly check your super balance to ensure your employer is paying your super and is the correct amount.

If you believe your employer has failed to pay your super or the correct amount, you can report this to the Australian Taxation Office (ATO). The ATO has power to investigate unpaid super.  However, you may first wish to raise the issue with your employer.

Employers who do not pay the correct super contributions by the due dates may be required to pay the shortfall amount, interest on that amount (currently at 10% per annum) and an administration fee.

Further, a director of a company that fails to meet super guarantee charge liability in full by the due dates automatically become personally liable for a penalty equal to the unpaid amount.

The ATO may issue a penalty notice (‘notice’) to a director of a company directing them to pay the penalty.  Failure to comply with a notice can result in a fine up to $10,500 or up to 12 months imprisonment.

If you or someone you know requires legal advice about any matter raised in this article, please contact us on (07) 5458 6855 or email mklein@kleinlegal.com.au.