QBCC MFR annual reporting is how Queensland contractor licensees show they still meet the minimum financial requirements (MFR) for their licence. The QBCC wants to see three things: a current ratio of at least 1, net tangible assets of at least zero (and enough to support the work you're doing), and revenue that stays within your licence's maximum revenue. For most category 1 to 7 licensees the annual reporting information is due by 31 December; for SC1 and SC2 company licensees it is due by 31 March. The figures themselves aren't hard. The hard part is getting reliable work in progress (WIP), retentions and job figures out of your job system and Xero or MYOB, and that is much easier done every month than in a December scramble.
This is a plain-English guide, not accounting or legal advice. Check the current rules on qbcc.qld.gov.au and talk to your accountant about your own licence.
What QBCC annual financial reporting asks for
The QBCC's Regulatory guide for MFR and annual reporting (March 2026) lists the core tools the MFR gives licensees:
- Quarterly management accounts. Licensees are required to prepare them, so you can check margins, make sure jobs are being paid and pay subcontractors and suppliers on time.
- A current ratio of at least 1. Current assets divided by current liabilities. In plain terms: what you can turn into cash in the next year covers what you owe in the next year.
- Net tangible assets (NTA) of at least zero. What the business owns, less what it owes, less intangibles such as goodwill. To keep your licence you need NTA of at least $0, and enough NTA to support the turnover you're doing.
- Paying debts as and when they fall due.
Annual reporting is the yearly check that these still hold. The QBCC opens a lodgement case in the myQBCC portal at least five months before the due date and sends email reminders before and after it.
Revenue against your licence's maximum revenue
Each licence category carries a maximum revenue. Per the QBCC, the SC1 and SC2 categories cover up to $800,000 of licence revenue, categories 1 to 3 cover $800,001 to $30 million, and categories 4 to 7 sit above that. The QBCC wants financial information outside the annual cycle if any of these happen:
- If you exceed your last accepted maximum revenue by more than 10%.
- If your net tangible assets fall from your last accepted position by 20% (categories 4 to 7) or 30% (SC1 to category 3).
- If you want to rely on, or revoke, a Deed of Covenant and Assurance.
- If the business changes significantly, such as a new structure or new directors.
That means you need to watch revenue against the cap and NTA through the year, not just once.
Who has to lodge, and when
According to the QBCC:
- Company licensees in all categories still lodge annually.
- Individual licensees in SC1 and SC2 stopped annual reporting in March 2025 under the Building Reg Reno.
- Most category 1 to 7 licensees: due 31 December each year.
- SC1 and SC2 company licensees: due 31 March each year.
For most categories, the QBCC says the information can be based on your most recent tax or financial year figures. Depending on your category, an accountant may need to prepare an MFR report. Check what applies to your licence on the QBCC's financial reporting page or with your accountant.
What happens if you're late
The QBCC guide sets out the process. A Notice of Proposed Disciplinary Action (for example a licence condition, suspension or cancellation) gives you 28 days to lodge or explain. If nothing changes, a Decision Notice gives a further 29 days before the decision goes on the public register. A condition or suspension stays until you lodge, and its history stays on the register.
Reporting may go, but keep watching the numbers
In January 2026 the Queensland Government responded to the Queensland Productivity Commission's construction inquiry. On the recommendation to remove MFR reporting, it "agrees in principle", but said an independent evaluation of MFR and any alternatives will happen before the remaining reporting requirements are removed. So in 2026, reporting still applies.
Whatever happens to the lodgement, the numbers themselves are worth knowing every month. A current ratio below 1 means short-term bills are bigger than short-term cash and debtors. A falling NTA means the business is going backwards. Revenue racing past your licence cap means growth is outpacing the balance sheet. The QBCC also uses outside information, such as credit defaults and monies-owed complaints, and can ask for management accounts at short notice. Owners who see these figures monthly are rarely surprised.
Why the figures are hard to get right
A builder's balance sheet depends on numbers that don't live in Xero or MYOB alone:
- Work in progress. Over-billed and under-billed jobs change both current assets and current liabilities. The WIP schedule usually sits in a spreadsheet built from the job system and the ledger. Our guide to WIP reporting for builders explains it.
- Retentions. Retention money you're owed, and retention you hold from subcontractors, has to be on the balance sheet, split between what's due within a year and what isn't.
- Related-entity loans. Many building groups move money between companies, and the QBCC has specific rules for how these loans are treated. Your accountant will need clean balances.
- Trust balances. If you run Queensland project or retention trust accounts, those balances need to tie back to the ledger.
When these come from a December rebuild of spreadsheets, the accountant spends the time chasing figures rather than checking them.
A monthly MFR check
Here's a simple routine that makes 31 December a non-event:
- Close the month properly. Bills, claims and payroll coded to jobs, bank reconciled.
- Update WIP. Percentage complete, earned versus billed, over and under billing by job.
- Update retentions and trust balances. Held, owed and due dates by job.
- Calculate the three numbers. Current ratio, NTA and revenue year-to-date against your licence's maximum revenue.
- Look at the trend. Is the current ratio drifting towards 1? Is NTA falling? Is revenue heading past the cap?
- Keep a quarterly pack. The quarterly management accounts the MFR asks for come straight out of this.
If your job system and Xero or MYOB are connected, steps 2 to 4 can be a report that updates itself. See our construction KPI dashboards and construction WIP reporting services.
The technical side
For whoever looks after your systems: the monthly MFR figures need balance sheet data from Xero or MYOB (by account, mapped to current and non-current), WIP adjustments from the job system or WIP schedule, retention balances and release dates by job, and intercompany balances by entity. A small reporting model can pull these through the Xero or MYOB API each night, apply the mappings your accountant agrees, and show current ratio, NTA and revenue against the licence cap on one page. The mappings matter more than the tool: agree them once with your accountant so the monthly figures match what they'll certify at year end.
Frequently asked questions
When is QBCC annual reporting due?
For most category 1 to 7 licensees, by 31 December each year. For SC1 and SC2 company licensees, by 31 March. SC1 and SC2 individual licensees no longer lodge annual reporting. Check your myQBCC portal, where the lodgement case opens at least five months before the due date.
What is the QBCC current ratio requirement?
Licensees must keep a current ratio of at least 1, meaning current assets at least equal current liabilities. Work in progress, retentions and related-entity loans all affect it, so ask your accountant how they're treated for your licence.
What are net tangible assets for QBCC?
Net tangible assets are what the business owns less what it owes, leaving out intangible assets such as goodwill. The MFR requires NTA of at least zero, and enough NTA to support your turnover.
Is QBCC MFR reporting being removed?
Not yet. In January 2026 the Queensland Government agreed in principle to remove the remaining MFR reporting, but only after an independent evaluation. Until the rules change, lodge as normal.
Do I need an accountant for QBCC annual reporting?
It depends on your category. For most categories the information can be based on your tax figures, but some licensees need an MFR report prepared by an accountant. Check the QBCC's financial reporting page and talk to your accountant.
If your MFR figures come from a December spreadsheet scramble, book a free initial chat. We'll look at where your WIP, retentions and job figures live and tell you honestly whether a better spreadsheet or a connected report is the right fix. For more on how we work with builders, see construction.