Financial Requirements for Licensing
You are required to provide information about your financial status prior to obtaining a licence and to maintain the licence. Copy of the Financial requirements for licensing (FRL) policy.
Allowable annual turnover will be LESS than $300,001
You can self certify if your allowable annual turnover (AATO) is less than $300,001. Use the following forms where you can declare:
Allowable annual turnover will be MORE than $300,000
Where your annual turnover will exceed $300,000 you will be required to submit financial information with your application.
You must continue to satisfy the relevant FRL policy conditions at all times. If you breach a condition on your licence, your licence may be suspended or cancelled. Unless you have an exemption from providing financial information, you must:
- have a Net Tangible Assets (NTA) position of at least $0. If you don’t have sufficient NTA for the Allowable Annual Turnover (AATO) level you require, you may provide a financial report and rely on a Deed of Covenant and Assurance from an appropriate person or company
- at all times have sufficient NTA for the level of AATO required
- provide us with relevant financial information if your NTA position decreases by more than 10%
- provide us with relevant financial information if your AATO increases by more than 10%
- maintain the minimum Current Ratio of 1:1 where you provide a financial report to satisfy the FRL policy requirments
- maintain internal management accounts** at required intervals: (not to be submitted to QBCC unless requested)
- provide relevant financial information at the time of your licence renewal
- provide evidence of your professional indemnity insurance at the time of application, renewal, audit or other specified time, where required
- not have an unsatisfied judgment debt
** Partnerships - the accounts must be for the licensee and partnership. Trusts – the accounts must be for the licensee and trust.
Do you need Professional Indemnity Insurance (PI)?
Applicants applying for the licence classes below, and who comply with the prescribed conditions, do not have to provide financial information and can instead provide evidence of holding the required level of Professional Indemnity Insurance and an Estimated Annual Turnover.
- Builder Project Management Services
- Building Design Low Rise
- Building Design Medium Rise
- Building Design Open
- Hydraulic Services Design
- Hydraulic Services Design (excluding design of on-site domestic waste water management)
- Site Classifier
- Site Classifier (excluding on-site domestic waste management)
Note: You are not able to use this provision if you hold a contractor licence in a class other than those mentioned above e.g. you hold a Carpentry contractor licence - in this instance you must comply with the full FRL policy.
