State’s builders put on notice over financial reporting

Up to 30,000 Queensland builders risk having their licences suspended under new laws designed to reduce the rate of construction businesses going bust.

UP TO 30,000 Queensland builders risk having their licences suspended if they fail to open their books for the state’s construction watchdog.

The Queensland Building and Construction Commission’s new minimum financial reporting laws, which came into effect on January 1, mean builders earning less than $30 million must lodge their ­financial reports with the ­commission.

The laws are designed to reduce the rate of builders going bust and leaving a list of creditors in their wake.

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A spokesman for the QBCC said it was “pleased” with the 40,000 licensees who have already submitted their financial information, but about 30,000 are still yet to lodge.

“Licensees who are yet to submit their financial information could face regulatory action including licence conditions which would prevent them undertaking new work,” the spokesman said.

“The QBCC has given the commitment to the smaller companies that once they’ve submitted their annual reporting information, they are guaranteed at least a year, to strengthen the financial health of their company before any regulatory action will be taken for failure to have the required assets.”

QBCC data reveals insolvencies are at a five-year low in the construction industry, with low building activity across Queensland in 2019.

Data reveals a 20 per cent drop in insolvencies compared to the five-year average.

Most insolvencies are in small-to-medium-sized companies with turnover up to $30 million.

The largest proportion within that category falls between $600,000 and $12 million in turnover.

Originally published as State’s builders put on notice over financial reporting