Queensland Building and Construction Commission (Minimum Financial Requirements) Regulation 2018

This regulation may be cited as the Queensland Building and Construction Commission (Minimum Financial Requirements) Regulation 2018.

This regulation commences on 1 January 2019.

The main purpose of this regulation is to prescribe, for section 116(2)(ab) and schedule 2 of the Act, definition minimum financial requirements, the minimum financial requirements for—

an applicant for a contractor’s licence; and

a licensee who holds a contractor’s licence.

Notes—

1 An applicant for a contractor’s licence must satisfy the minimum financial requirements for the grant or renewal of a licence. See section 31 of the Act.

2 A contractor’s licence is, under section 35(5) of the Act, subject to conditions about satisfaction of the minimum financial requirements.

3 The commission may take action under section 50C of the Act in relation to a licensee’s satisfaction of the minimum financial requirements.

The dictionary in schedule 3 defines particular words used in this regulation.

In this regulation, if the context permits, a reference to a licensee includes a reference to an applicant for a contractor’s licence.

A prescribed accounting standard means any of the following documents published by the Australian Accounting Standards Board—

Australian Accounting Standards;

Statements of Accounting Concepts;

Interpretations;

Framework for the Preparation and Presentation of Financial Statements.

Also, if a document mentioned in subsection (1) is amended or replaced, a prescribed accounting standard includes the document as in force immediately before it was amended or replaced.

However, subsection (2) applies in relation to a document only for a period of 12 months starting on the day the amendment or replacement takes effect.

This regulation, other than part 4B and section 17N, does not apply to a licensee if—

the licensee holds a contractor’s licence of a following class under the Queensland Building and Construction Commission Regulation 2018, schedule 2—

building design—low rise licence;

building design—medium rise licence;

building design—open licence;

fire protection—water-based fire system stream—design licence;

fire protection—electrical stream—design—fire alarm systems licence;

hydraulic services design licences;

site classifier licences; and

the professional indemnity insurance held by the licensee under part 4B covers the scope of work for the class mentioned in the Queensland Building and Construction Commission Regulation 2018, schedule 2; and

the licensee carries out work that is solely within the scope of work for the licence class.

This regulation, other than part 4B and section 17N, does not apply to a licensee if—

the licensee holds a licence of the class builder—project management services under the Queensland Building and Construction Commission Regulation 2018, schedule 2; and

the professional indemnity insurance held by the licensee under part 4B—

covers the scope of work for the class mentioned in the Queensland Building and Construction Commission Regulation 2018, schedule 2; and

provides for a minimum limit of indemnity for a claim of at least $1M; and

the licensee carries out work that is solely within the scope of work for the licence class.

This regulation, other than part 4B and section 17N, does not apply to a licensee that is a special purpose vehicle to the extent the licensee carries out building work under the public-private partnership for which the special purpose vehicle was established.

This section applies if a licensee is required to keep, or give the commission, information or documents under this regulation.

The information or documents must comply with the prescribed accounting standards.

Note—

See section 11D in relation to the requirements for MFR reports for particular licensees.

However, if a requirement of this regulation is inconsistent with the prescribed accounting standards, the information or documents must comply with this regulation to the extent of the inconsistency.

The information or documents must be in English.

All references to monetary amounts in a document must be expressed in Australian dollars according to the rate of exchange that applies in Queensland on the day the document is prepared.

This section applies if a licensee that is a group company is required to prepare or give any of the following information under another provision of this regulation—

an MFR report;

internal management accounts;

signed financial statements.

To comply with the requirement, the licensee must give the information mentioned in subsection (1) for the licensee’s corporate group.

For subsection (2), a reference in this regulation to the licensee includes a reference to the licensee’s corporate group.

An application for a contractor’s licence under section 33 of the Act must be accompanied by the following information—

if the applicant’s proposed maximum revenue for a reporting year is not more than $800,000—a declaration in the approved form about the applicant’s compliance with the minimum financial requirements;

if the applicant’s proposed maximum revenue for a reporting year is more than $800,000—an MFR report.

However, an application need not be accompanied by the information mentioned in subsection (1) if—

the applicant is the holder of a contractor’s licence (an existing licence) of a class other than the licence being applied for; and

the licensee’s total actual revenue will not exceed the maximum revenue approved for the existing licence, if the licence the subject of the application is granted.

An application for a licence under section 33 of the Act must also be accompanied by the following information for the applicant’s professional indemnity insurance—

a copy of the certificate of currency for the insurance;

if the professional indemnity insurance does not comply with part 4B—a declaration, in the approved form, about the non-compliance;

if the professional indemnity insurance complies with part 4B—a statutory declaration verifying compliance;

if the insurance policy for the professional is arranged by an insurance broker—a receipt given by the broker for payment for the insurance.