The QBCC has overhauled its rules effective 1 October 2014 - and it’s (mostly) great news for small businesses.
The most significant change is the removal of the requirement to have an annual report prepared and submitted by your accountant each year (where your circumstances have not changed). A summary of the most important changes are as follows:
- The limit for self-certification has increased from $100,000 to $200,000 for category 1 and from $300,000 to $600,000 for category 2.
- The Allowable Annual Turnover (AATO) limit is now known as the Maximum Revenue and is calculated based on your category and your Net Tangible Assets (NTA). This is the maximum amount you can turnover in any financial year. Previously this was calculated as the turnover from your renewal date to renewal date, making calculation difficult.
- Where a debt is due (including your creditors), and it is not genuinely the subject of a dispute, it must be paid when it falls due. It is expected this will have a significant behavioural change in the industry in relation to the payment of accounts.
- There is no requirement to provide a financial report at renewal. Reports are now only required where you want to increase your Maximum Revenue, or your assets have dropped and you no longer meet the conditions for your current Maximum Revenue.
- If net assets drop by more than 30% the QBCC must be advised. Previously they were required to be notified if the assets dropped by more than 10%.
- All licensees must maintain Quarterly internal management accounts and review them to ensure they meet the requirements (current ratio, NTA etc) at least this often.
These changes brings the QBCC closer to the ATO’s approach of self-assessment. However, it is important to note that similar to the ATO, the QBCC has the right to request the records you have used to self-assess and can take action against you where you have not complied.
There are quite a few changes and we recommend that for more detailed information you visit www.qbcc.qld.gov.au or contact our office to discuss your situation.