New financial laws for building and construction sector
If you work in the building and construction sector in Queensland, then you will likely be aware of the changes now in effect for payments and financial reporting.
Not sure what the changes are or how they affect your business? We have put together some notes to help you get your head around it.
- Commencing on Monday, 17 December 2018, all payment claims (including invoices) are protected by the BIF Act. This means that specific wording is no longer required on payment claims or invoices to support your rights to recover monies owed.
- There is also a requirement to issue payment schedules within 15 business days in response to every payment claim. This is unless the recipient intends to pay the full claim amount by the due date.
- Providing “second chance” payment schedules is no longer available. This means that prior notice is not required when pursuing your rights to recover monies through adjudication. More importantly, significant penalties now apply for failure to pay monies owed after an adjudication decision.
- The QBCC Act has changed to include a 12 month liability period for statutory defects. This covers contracts where no period is provided. There is now a requirement to notify of the end of the defects liability period. Withholding retentions after this date without a reasonable excuse could result in imprisonment.
- From Tuesday, 1 January 2019 new minimum financial requirements apply which include the return of annual reporting. Most licensees will be required to provide financial reports on renewal of their licence
- Some licensees will be asked to report earlier than their renewal date. QBCC will notify you if you are required to lodge early. If so, please contact your accountant as soon as you receive the notification to allow sufficient time for interim reports to be prepared.
- Requirements also apply to eligible contractor licensees to notify the QBCC of significant changes to their financial position.
For more information about the changes, visit Department of Housing and Public Works website. For tailored advise on these changes and how they affect your business, contact your advisor or accountant.