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general building and construction

First financial deadline fast approaching following law reforms

Large construction companies with annual revenue of more than $30 million have until the end of March to get their financial reports to the Queensland Building and Construction Commission (QBCC), or risk court action.

QBCC Commissioner Brett Bassett said the first deadline for new reporting reforms was at midnight on 31 March 2019.

“Under the laws which came into effect on 1 January this year, all QBCC licensees with a turnover of more than $30 million must submit their audited financial reports for the 2017/18 financial year to the regulator by the end of March,” Mr. Bassett said.

“By the end of 2019, every other licensee will be required to meet new financial reporting rules.

“These new requirements help the QBCC to monitor the viability of licensees. Viable construction companies offer better stability for the industry and improve the security of payment for sub-contractors and suppliers.

“Those who don’t follow the law could be subject to prosecution, financial audits and, where appropriate, license suspensions or cancellations.”

The Commissioner said that of the 855 licensees in categories 4 to 7, who have annual revenue of more than $30 million, the QBCC had so far only received financial reports from 171 licensees.

Many of these licensees are large multi-national companies operating across the country.

“Earlier this month we suspended the license of construction giant Laing O’Rourke Australia Construction Pty Ltd for failing to meet minimum financial requirements,” Mr. Bassett said.

“Let me be clear – if you are operating outside of the law, we will take appropriate regulatory action.

“Part of our job is to ensure Queensland’s building and construction industry is safe, stable and sustainable, and if big companies are operating with unacceptable financial risk, then we will be taking regulatory action.

“We must work to protect the sector from serious financial harm. When big companies collapse, it has a devastating impact on the industry.

“The new annual financial reporting requirements will help the QBCC to better protect sub-contractors, suppliers, other companies, homeowners and investors from potential financial detriment when licensees are operating with poor financial health.”

For instructions on how to submit the financial documents, visit www.qbcc.qld.gov.au/financial-reporting-licensees. The QBCC website also has a licensee search function for consumers.

The QBCC will also send reminders to licensees who are yet to provide their information

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