Queensland construction industry saved from unnecessary red tape

• Simpler reporting a win for smaller construction licensees in Queensland
• Advocacy of joint accounting bodies pays off for industry in need of a break

Small building and construction companies in Queensland have been spared from unnecessary and impractical financial reporting - thanks to the advocacy efforts of CPA Australia and other policy influencers.

CPA Australia is pleased that the Queensland Government has listened to our concerns and reverted to simpler Minimum Financial Reporting (MFR) Regulations for small licensed builders registered with the Queensland Building and Construction Commission (QBCC).

The state government has decided to progress an amendment put forward by the joint accounting bodies (CPA Australia, Chartered Accountants Australia and New Zealand and the Institute of Public Accountants) that means, instead of having to comply with more arduous reporting requirements, known as "general purpose financial statements", primarily designed for bigger construction companies, small licensees will only need to report in accordance with simpler requirements, also referred to as "special purpose financial statements".

The law, which was implemented around two years ago, created additional and excessive reporting standards for smaller QBCC licensees without the resources of their bigger counterparts. It may even have resulted in the knock-on effect of higher costs for consumers. 

It follows more than two years of campaigning by the joint professional accounting bodies to cut red tape and help make it cheaper and easier for Queensland builders to comply with a less onerous level of detail in their reporting. 

CPA Australia’s Interim Head of Policy and Advocacy, Ram Subramanian, is pleased that our ongoing advocacy work has resulted in a win for small businesses in need of a break. 

"Smaller construction businesses across Queensland have been burdened under a significant amount of red tape compared with the rest of Australia since 2021, so it’s pleasing that the MFR requirements have been simplified," he said. 

"These changes still allow for effective compliance with the QBCC regulations while cutting a huge amount of additional work for these smaller licensees.

"This is a good outcome for all Queenslanders. Every dollar that a business spends on red tape compliance is an added cost that could be passed on to the customer."

The change applies to financial information in MFR Reports for the quarter ending 31 December 2023 onwards.