Plumbing is a licensed trade — and a licensed trade needs licensed accounting
A plumber in Queensland does not just run a business; they hold a QBCC licence. That licence carries financial reporting obligations most plumbers only hear about when something goes wrong. Accounting for a plumbing contractor is not the same as accounting for a cafe or a retail shop — the numbers have to satisfy the QBCC as well as the ATO, and the structure has to protect the licence holder as well as the business.
What makes a plumbing business different
A plumbing contractor carries a QBCC licence class — plumber, drainer, gas fitter, roof plumber — and with it a turnover category and a Maximum Revenue limit. On top of the usual tax and BAS obligations, the licence adds:
- Minimum Financial Requirements (MFR) reporting, lodged annually, tied to your turnover category.
- A Maximum Revenue ceiling you cannot exceed without breaching your licence.
- Net tangible assets and working capital thresholds that have to hold up across the year, not just on the day you renew.
- Structure requirements — the licence should sit in a company, not a trust, because a trust has no equity and can force a deed of covenant and assurance secured against your personal assets.
Generic accounting handles the BAS and the tax return. It routinely misses the licence layer — and that is where plumbers get caught.
Where plumbers commonly get caught
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Exceeding the Maximum Revenue limit. A busy year of billings pushes revenue past the ceiling for the category, and the licence is breached before anyone notices. Without regular catch-ups tracking revenue against the limit, the first sign is often a letter from the QBCC.
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Holding the licence in a trust. The trust has no equity, so the QBCC asks for a deed of covenant and assurance — secured against the plumber's home and personal assets. The protection the structure was supposed to provide never existed.
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MFR reporting that does not match the licence. The MFR report has to line up with the turnover category and the financial evidence behind it. A report that looks right but does not match the category fails under scrutiny.
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Personal asset exposure. When the licence sits in the wrong structure or the financial position slips, the plumber's personal assets end up behind the licence — the exact opposite of what the structure was meant to do.
How we help plumbing contractors
We work with QBCC licence holders — plumbers included — across the full licence cycle. Our job is to keep the licence live and the plumber protected at the same time.
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We confirm your licence class, turnover category and Maximum Revenue limit so you actually know the ceiling you are working to.
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We prepare and lodge your annual MFR report, accurate and on time, matching your category and your financial position.
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We set up regular catch-ups — monthly or quarterly, not just at year-end — where revenue against the Maximum Revenue limit is the first thing on the agenda. If you are approaching the ceiling, we see it months ahead and plan for it: scheduling work, managing recognition, or preparing a category move before you breach.
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We fix the structure. If your licence sits in a trust, we move it into a company — releasing you from the personal assurance where possible and putting a real wall between the business and your home.
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We keep your financial position licence-ready. Net tangible assets and working capital are tracked through the year, so a category change is available when growth demands it rather than a last-minute scramble.
The plumbing-specific numbers we watch
Plumbing contractors have patterns that matter for the licence:
- Lumpy, project-based revenue that can spike a quarter and push you toward the limit — tracked against the ceiling, not just the bank balance.
- Materials and subcontractor costs that move gross margin and affect the financial position behind the licence.
- Vehicle, tool and equipment spend that sits in the balance sheet and supports (or undermines) the net tangible assets test.
- Cashflow timing on progress claims and final payments that can distort revenue recognition if not managed.
None of these are visible in an annual tax return. They are only visible when someone is watching them through the year.
The one question to ask now
If you hold a plumbing licence, ask yourself: do you know your Maximum Revenue limit, is your licence in a company, and is someone tracking your revenue against the ceiling through the year? If any answer is no, that is the conversation to have.
Call the direct line. We will confirm where your licence and your numbers stand, and set up the catch-ups that keep your licence live and your personal assets protected while you grow.
