Minimum Financial Requirements – Proposed Reporting Changes

7 February 2024

From 1 July 2021, changes to the Australian Accounting Standards (AAS) removed the ability for Special Purpose Financial Statements (SPFS) to be prepared to satisfy certain reporting requirements, including Minimum Financial Requirements (MFR) reports.

This change to the AAS meant that if a licensee had to prepare and lodge an MFR report with the Queensland Building and Construction Commission (QBCC), it needed to include a General Purpose Financial Statement. Note, MFR requirements only apply to QBCC licensed contractors and MFR reports are only required in specific circumstances.

The Department of Housing, Local Government, Planning and Public Works is progressing an amendment to the Queensland Building and Construction Commission (Minimum Financial Requirements) Regulation 2018 (MFR Regulation) to reduce costs and administrative burden for certain licensees.

The amendment will allow QBCC contractors in financial categories SC1, SC2 and 1 to 3 to prepare an MFR report in line with the former SPFS requirements for the accounting period ending 31 December 2023 onwards.

The amendment is being progressed as a priority and is intended to commence in the first quarter of 2024 (subject to the relevant Government approvals).

Further information regarding the proposed amendment will be provided in coming weeks.