Insights

Growing Fast? Here’s What Happens If You Exceed Your QBCC Turnover

If your business is taking on more work as it grows, staying within your Queensland Building and Construction Commission (QBCC) Maximum Revenue isn’t optional. This cap, which is dependent on your Net Tangible Assets (NTA), is in place to prevent businesses from trading beyond their financial capacity.

However, exceeding your allowable turnover without preparing correctly can trigger licence issues, delays, and urgent reporting requirements. Here’s the short, practical guide to staying compliant.

1. Your QBCC Maximum Revenue: The Basics

Your QBCC maximum revenue is the total turnover your business can earn per year, derived from your NTA. In addition to having a sufficient NTA position, your business must also ensure it maintains at least a 1:1 current ratio; meaning, for every $1 of current liabilities, you have at least $1 of current tangible assets.

It exists to ensure you can reliably:

• Pay subcontractors and suppliers
• Service debts
• Keep your business financially stable

2. The 10% Leeway (and When It Stops Helping)

You may exceed your allowable turnover in a reporting period by up to 10% without prior approval.

But once you expect to exceed your limit by more than 10%, you must apply to increase your Maximum Revenue BEFORE it happens.

This is a legal obligation under the Minimum Financial Requirements Regulation.

You’ll need either:

• A new financial declaration (if applying for turnover up to $800,000), or
• A full MFR (Minimum Financial Requirements) Report prepared by a qualified accountant showing you have sufficient NTA to support higher revenue.

3. What Happens If You Don’t Apply in Time?

Exceeding turnover without approval can result in:

• Non‑compliance flags
• Requests for urgent financial documents
• Licence conditions, restrictions, or suspension in serious cases

The QBCC views this as a sign the business may be operating beyond its financial strength.

4. Early Signs You May Breach Your Turnover

You may be approaching or exceeding your limit if:

• You’ve taken on multiple new projects at once
• You’re expanding crews or subcontractors rapidly
• Your financials aren’t up to date

Accordingly, it is crucial you are keeping accurate, frequent financial records so you can identify issues early.

5. How to Prepare (Simple Checklist)

• Track turnover monthly against your allowable limit.
• Review your net tangible asset position, as this directly impacts your Maximum Revenue. A drop of more than 30% needs to be reported and may lead to a reduction in maximum allowable revenue.
• Plan ahead before accepting large jobs.
• Allow time for MFR Reports (can take weeks).
• Apply before exceeding 10%, not after.

Don’t Let Growth Put Your Licence at Risk

If your business is expanding, or if you’re unsure how close you are to your turnover cap, now is the perfect time to review your numbers.

Contact your Altitude Accountant or reach out to our Altitude team to help prepare your MFR Report, check your NTA, and ensure your turnover increase is compliant and stress‑free.

Keep your focus on growing your business, knowing your compliance is handled by our team.