Figures checked 1 October 2026: the Queensland Building and Construction Commission (QBCC) minimum financial requirements guidance sets a current ratio of no less than 1:1 and net tangible assets of at least $0 for a licensee. The QBCC says these minimum financial requirements must be met and upheld at all times as a condition of holding a QBCC licence. Its net tangible assets guidance describes NTA as working capital and links it to the specific maximum revenue a licensee can earn in the forthcoming year.
What are the QBCC’s minimum financial thresholds?
| Measure | QBCC requirement or role |
|---|---|
| Current ratio | No less than 1:1 |
| Net tangible assets (NTA) | At least $0 |
| Maximum revenue | A specific annual dollar cap on turnover or earnings, calculated from the accepted NTA position and set within the applicable financial category range |
| Financial categories | 9 categories based on NTA and maximum revenue |
The $0 NTA figure is the stated minimum threshold, not a maximum revenue allowance. QBCC separately calculates a licensee’s maximum revenue from the accepted NTA position. A current ratio below 1:1 would not meet the stated minimum.
Must the requirements be met throughout the licence?
Yes. The QBCC describes minimum financial requirements as an operating baseline for all licensees. They must be met and upheld at all times while the QBCC licence is held, rather than being treated as an isolated figure.
The QBCC determines its financial requirements through annual financial reports and by monitoring building-industry triggers and trends that may affect licensees. It says these requirements help reduce financial failure and support people being paid for their work.
How is the current ratio different from NTA?
In ordinary financial terms, the current ratio compares current assets with current liabilities. NTA is a separate calculation showing the working capital available to run the business.
The QBCC calculates NTA by:
- starting with total business assets;
- accounting for all liabilities;
- removing intangible assets such as goodwill, patents and trademarks; and
- removing disallowed assets.
All liabilities must be included in the NTA calculation. This includes related entity liability loans owing and debts or obligations that must be paid within a particular period or on demand. No liability can be left out of the calculation.
The 1:1 current-ratio threshold and the NTA requirement therefore serve different purposes. Meeting one does not remove the need to assess the other.
How does NTA affect maximum revenue?
The QBCC uses a licensee’s accepted NTA position to calculate a maximum revenue amount for the forthcoming financial year. Maximum revenue is the specific dollar cap on turnover or earnings, rather than the broader financial category shown on the licence.
Entries listed in the QBCC’s NTA table include:
| Financial category | NTA | Maximum revenue |
|---|---|---|
| SC1 | $12,000 | Up to $200,000 |
| SC2 | $46,000 | Up to $800,000 |
The financial category is not itself the maximum revenue amount. It is a range used to calculate the licence renewal fee and determine the level of financial information the licensee must provide to the QBCC. The specific maximum revenue cap sits within that category range.
How can a licensee check or update these figures?
- Check the financial category. The category is reflected on the QBCC licence and can be checked through the QBCC website’s licence search. The QBCC says this is the only public information it releases about a licensee’s financial position.
- Calculate the relevant position. For licensees outside SC1 and SC2, the QBCC provides an NTA/MR calculator for determining either maximum revenue from known NTA or the NTA required to cover known revenue.
- Identify the resulting category. Maximum revenue calculated from the accepted NTA position places the licensee within one of the 9 financial categories.
- Apply to change maximum revenue. An update can only be requested by applying to the QBCC and providing the required financial documentation, usually an MFR Report and signed financial statements.
What happens if a licensee does not meet the requirements?
A licensee that fails the minimum financial requirements faces a greater risk of insolvency and financial loss to creditors and consumers.
The QBCC says it will take appropriate enforcement action when both of the following are present:
- the licensee has failed to meet the minimum financial requirements; and
- there is demonstrated risk associated with the licensee continuing to trade.
The QBCC describes itself as a risk-based regulator and says it evaluates various factors before acting on a contractor’s inability to meet the requirements.
What happens if the business becomes insolvent?
If a company becomes insolvent and cannot pay its debts when due, its director must appoint an administrator by law. A sole trader in that position must enter bankruptcy or an insolvency agreement.
The QBCC cannot stop or influence insolvency processes. It does, however, apply exclusions to licensees, applicants and other parties involved in an insolvency event.
Regulation alone cannot prevent every insolvency, but identifying financial distress early enough for regulatory action may reduce the damage. A person or entity at risk should immediately seek professional, financial, legal and/or insolvency advice.
This is general information, not financial or legal advice. Check the current QBCC regulator page and the relevant policy’s Product Disclosure Statement before making decisions.
Sources
- What are minimum financial requirements? | Queensland Building and Construction Commission
- Net tangible assets | Queensland Building and Construction Commission
FAQ
Is 1:1 the minimum current ratio for every QBCC licence?
Yes. The QBCC states that licensees must have a current ratio of no less than 1:1 and uphold that minimum throughout the licence.
Does net tangible assets of $0 mean there is no maximum revenue?
No. $0 is the stated NTA minimum, while maximum revenue is separately calculated from the accepted NTA position. The specific annual cap is set within the applicable financial category range.
Can a licensee change its maximum revenue without applying to the QBCC?
No. Maximum revenue can only be updated through an application to the QBCC with the required financial documentation, usually an MFR Report and signed financial statements.
What action can the QBCC take when minimum financial requirements are not met?
The QBCC may take appropriate enforcement action when a licensee fails the requirements and there is demonstrated risk associated with continuing to trade. It evaluates various factors before acting.
Where can a licensee check its QBCC financial category?
The category is shown on the licence and can be checked through the QBCC website’s licence search. The QBCC describes this as the only public information it releases about the licensee’s financial position.
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