The document that gates every category move
The MFR report — Minimum Financial Requirements report — is the single document that gates every move a QBCC licence holder makes. Increase your Maximum Revenue? MFR report. Move up a category? MFR report. Annual reporting for Category 1–7 licensees? MFR report. It is the financial evidence the QBCC relies on to confirm you can support the turnover you are licensed for.
Yet most licence holders see the MFR report as a form to fill in. It is not. It is a structured financial statement, prepared by an accountant who knows the framework, and it has to hold up under the QBCC's scrutiny. A report that looks right but does not match the category, the NTA, or the current ratio fails — and with it, the licence event it was meant to support.
What an MFR report actually contains
A proper MFR report sets out:
- The licensee's financial position — assets, liabilities, and the resulting Net Tangible Assets, with intangibles stripped out.
- The current ratio — current assets against current liabilities, which has to meet the 1:1 floor.
- The Maximum Revenue being supported — the specific dollar amount, within the category range, that the NTA and ratio evidence.
- The basis of the NTA — whether it is the licensee's own equity, or equity promised through a deed of covenant and assurance (with covenantor statements of financial position where relevant).
- The accountant's opinion — that the licensee meets the minimum financial requirements for the maximum revenue stated.
At higher categories, the QBCC looks at this document closely. The numbers have to line up — NTA against the category floor, current ratio against 1:1, maximum revenue against the declared amount — and they have to line up with the signed financial statements that accompany it.
Where MFR reports fail at Category 2 and beyond
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NTA stated but not evidenced. A report can state the NTA, but if the underlying financial statements do not support it — because assets are overstated, intangibles are included, or the fixed asset register is wrong — the report fails.
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The current ratio overlooked. A report that focuses on NTA and ignores the 1:1 current ratio is incomplete. The QBCC requires both, and a failure on either is a failure of the report.
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Maximum revenue restricted incorrectly. An accountant can restrict the licensee's maximum revenue to the category required by stating only the NTA needed for that level. Done well, this keeps the licence lean. Done badly, it caps the builder below where they could lawfully operate.
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Deed of covenant relied upon without proper statements. Where the NTA relies on a covenantor's assets, each covenantor needs a statement of financial position. Missing or outdated statements invalidate the NTA evidence.
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Timing. The financial information in an MFR report has to be current — generally within four months of the reporting date. A report built on stale numbers fails on age alone.
What the QBCC actually wants to see at Category 2 and beyond
At Category 2 ($3m–$12m) and higher, the QBCC is not just checking that a form is filled in. It is assessing whether the business can sustain the turnover it is licensed for — pay wages, pay subcontractors, service debts, cover claims. The MFR report is the evidence that it can.
What the QBCC wants to see is:
- NTA that clears the category floor and is evidenced by real, tangible assets on the balance sheet.
- A current ratio that holds above 1:1, with current assets and liabilities classified correctly.
- A maximum revenue figure that sits within the category range and is supported — not aspirationally, but actually — by the NTA and ratio.
- Financial statements that are signed, current, and consistent with the report.
- Where a deed of covenant is used, covenantor statements that are complete and current.
A report that delivers all of this is a report that moves the licence forward. A report that misses any of it is a report that stalls it.
How regular catch-ups keep the MFR report ready
An MFR report should never be a scramble. It should be the documentation of a financial position that has been managed through the year. On a fixed cadence of catch-ups, we:
- Track NTA and the current ratio each period, so the numbers in the report are the numbers that have been holding all year.
- Keep the fixed asset register accurate, so the NTA is evidenced, not estimated.
- Manage the classification of loans and accruals, so the current ratio is clean when the report is prepared.
- Prepare the report and statements early, so a category move or annual report is ready when it is needed — not assembled under deadline pressure.
How we help
We prepare MFR reports for QBCC licence holders at every category:
- We confirm your category, declared Maximum Revenue, NTA, and current ratio — and tell you whether your position supports the report you need.
- We prepare the MFR report and signed financial statements, with the numbers evidenced and the timing current.
- We restrict or lift the maximum revenue appropriately, so the licence is neither over- nor under-capped.
- We set up regular catch-ups so the financial position behind the report is managed through the year — and the report itself is a formality, not a fire drill.
If your next MFR report is approaching — for annual reporting, a category move, or a maximum revenue increase — call the direct line. We will confirm what the QBCC needs to see and make sure it is there before they ask.
