To conclude our blog series into the recent amendments made to the QBCC Act, we will discuss the increased penalties, fair commercial conduct and rectification changes.
Tradies Accountant is a specialised accounting firm that provides bookkeeping, accounting and consulting advice to trade business owners. We have been working closely with shopfitters and builders across Australia over the past year. Through our consulting advice, we have set up a software that allows us to gather benchmarks from shopfitting and builders businesses, we have included four important benchmarks below that will let you see where you are sitting in relation to your competitors.
At Tradies Accountant we have been providing additional services to clients such as upgrading their licence category and helping resolve QBCC audits. We have found that some of the business owners are unaware of their requirements regarding holding a QBCC licence. As a trade business owner and a licence holder, you need to make sure you are compliant with all QBCC licence requirements. Explained below are the two main requirements imposed by QBCC:
Phase One of PBAs began from 1 March 2018 on State Government funded projects valued between $1 million and $10 million (including GST). Following successful implementation, PBAs will be required on all building projects with a contract value of more than $1 million (including GST) in 2019. PBAs will not apply to engineering and infrastructure projects including bridges, roads and ports, unless ‘building work’
The government is currently offering grants to help small businesses owners grow their business. These grants can be used to help fund the development and growth of your business. The funding just requires an application to the relevant body once you are satisfied you meet the criteria. There are different grants available for specific purposes. The most relevant ones for Trade businesses owners are highlighted below.
The Queensland Government has introduced new reforms to improve security of payment in the building and construction industry.
The Queensland Government is implementing project bank accounts from the 1st of March 2018 for certain building and construction projects valued between $1 million and $10 million. This new incentive will also begin in 2019, to private sector projects that are over $1 million.
Project bank accounts, will involve the following 3 parties:
-Principal - who the building work is being carried out for under the contract
-Head Contractor - who is carrying out the building work under the contract
-Subcontractor - first-tier subcontractors who have been subcontracted by the Head Contractor to carry out the work under the contract