What are the main tested used for QBCC compliance?
Maximum Revenue: This refers to the highest turnover you are permitted to achieve in a financial year, which includes a 10% buffer based on your declared Maximum Annual Turnover (MAT). It is important to note that this figure represents actual revenue, rather than projected sales or contract values. The Queensland Building and Construction Commission (QBCC) uses this metric to assess the scale of a licensee, operating under the principle that larger businesses pose greater risks to the industry and consumers if they were to fail.
Net Tangible Assets: To operate within the building industry in Queensland, you must demonstrate that you possess sufficient tangible assets corresponding to your license category and annual turnover.
Current Ratio: Your total current assets—such as cash, accounts receivable, inventory, and work in progress—must exceed your total current liabilities, which include unpaid bills, trade creditors, and tax obligations. Current assets and liabilities are defined as those amounts due or receivable within the next 12 months.