QBCC Structuring

We’ve been working with businesses to ensure they meet the QBCC financial requirements since they commenced in 1999. 

If you’re a licensee, you’ll understand how important maintaining your license. We work with you to ensure your business is structured in a way that enables you to easily meet the financial tests. And, just as important, helping you understand where you really stand in passing them.

If you intend for your business to hold a QBCC license it’s important to ensure your business structure is future fit to meet the financial requirements of the QBCC. Whether you’re starting a business and want to get it right first time or restructuring and need to make sure you’re best placed to meet the QBCC requirements. We can help.

There are many ways to structure a business.
Make sure yours meets licensing requirements.

Financial requirements

At Mage, we’ve been involved in the industry since 1999 when the financial requirements first came into play.

We understand the nuances and background of the rules, and keep our knowledge up to date through regular dealings with the regulator and industry in general.
As industry experts, we assist businesses to avoid the pitfalls and meet the requirements.

Common mistakes we see

The business never met the financial tests from day one, for example, assets were on the balance sheet that could not be included as QBCC assets.

The business met the tests at the time of the licence being granted but reasonably foreseeable events were not considered.

Changes to structure that resulted in the business ceasing to meet the tests, e.g. the purchase of new assets that affect key QBCC ratios.

Planning which solved an issue but no longer met QBCC rules e.g. asset protection, resulting in a licence suspension as the QBCC rules were forgotten.

Common issues needing resolutions

Common issues we see

No strategy or plan to maintain your license – hoping for leniency or arguing with the regulator is not a strategy.

Misinterpretation of the financial requirements – misunderstandings with the regulator are common and can often be cleared up quickly.

Insufficient evidence provided to satisfy the regulator. Poor WIP reporting is a common example of this.

Poor structuring of the business – we can move quickly to restructure businesses in a way that will meet ongoing licensing requirements.

Audits & suspension support

While no one wants to have their QBCC licence in danger, the new annual review system means it’s almost inevitable an audit by the regulator may take place.  When this happens, it’s important to ensure you’ve engaged professionals who understand how the regulators operate and what they’re looking for, before it’s too late.

Very simply, we help you maintain your license and business continuity. We work side by side with you and your advisors to put a strategy and action-plan in place in the short-time frame you will have to resolve any issues.

About us

© Mage Advisory, 2019. ABN 72 626 661 087

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