Your NTA will determine your maximum revenue for the forthcoming year. Net Tangible Assets. Net Tangible Assets (NTA) means the total assets of a business, less any intangible assets such as goodwill, patents, and trademarks, less all liabilities. Self-Certification Category 2 (SC2) Up to $600,000. Licensees will also be required to report a significant decrease in Net Tangible Assets (30% for licensees with a turnover below $30 million or 20% for licensees with a turnover above $30 million). A new Minimum Financial Requirements (MFR) Framework was released in November 2018, outlining the MFR reforms: • Re-introducing mandatory annual reporting for all licensees; • Changing reporting decreases in Net Tangible Assets (NTA); and • Clarifying how assets are to be treated. They don’t have to engage an accountant to do this. When subtracted from the trustee’s own assets of $2 of paid-up capital, any deficit would easily result in the QBCC licence holder’s Net Tangible Asset position being less than $0. Importantly, this outcome is an immediate failure of QBCC requirements and is unsalvageable even by a Deed of Covenant and Assurance. Applicants/licensees must have sufficient Net Tangible Assets to meet the minimum requirements. At a basic level the Annual Reporting will provide the QBCC with access to your revenue, expenses, assets and liabilities which will allow the QBCC to determine if you hold more enough Net Tangible Assets at the end of the financial year. Net Tangible Assets. Declare revenue and net tangible assets in the online portal. If you need more information on Annual Reporting, please find the QBCC’s Guide to Annual Financial Reporting here. NET Tangible Assets: Information to be provided: Self-Certification Category 1 (SC1) Up to $200,000: $12,000: Declare revenue and NET tanglible assets in the online portal. Failing to meet this test will result in a show cause notice and potentially QBCC licence cancellation. The QBCC will be checking that you meet three main financial requirements around Net Tangible Assets, Current Ratios and Maximum Revenue – see the details here. Applicants/licensees cannot have a negative Net Tangible Asset position. Self-Certification Cat. It is used to justify their level Many QBCC licensees find that as a condition of the grant to them of a licence, they must provide a QBCC deed of covenant. If you anticipate that you will exceed the MR by more than 10%, you need to inform the QBCC. – Categories 4 to 7 required to report decreases of more than 20 per cent in Net Tangible Assets. If you are an SC1 Licence Holder (income up to 200K) you need net tangible assets of at least $12,000. Net Tangible Assets: Documents/Information to be Provided: First Report Due: Subsequent Report Due: Self-Certification Cat. Net Tangible Assets (NTA) The second test is the net tangible assets test. Subsequent Report Due. 1 (SC1) Up to $200,000. Anyone falling into this category, will be required to report decreases in net tangible assets of more than 20%. Net tangible assets are calculated by the following rule, Reducing net assets If requested by QBCC The first annual report is due by 31 March 2019 for categories 4-7 (turnover over $30m) or 31 December 2019 for all other categories (turnover up to $30m).If you are licensed with QBCC you should by now have received information from QBCC … All licensees will need to provide financial information to the QBCC annually (varying timeframes apply as to when the first year of data is to be provided); All licensees need to report significant decreases in Net Tangible Assets (threshold reduced to 20% for categories 4-7; … .Net Tangible Asset Value per share – net tangible assets per share before tax on unrealised gains on investment portfolio : 4: Inception is 30 June 2018 being the date when MMJ commenced accounting for investments as an investment entity . financial information to the QBCC each year (as was the case prior to 2014). A requirement to report decreases in net tangible assets: 20% for category 4-7 licences and 30% for all other licences (previously 30% for all categories). a) the ‘Net Tangible Assets recognised by the Government’ (NTA -Govt) of a contractor, used to determine their Maximum Revenue in the Queensland Government sector (refer section 5.0), need to be legally and beneficially owned by the contractor (assets held by a contractor as trustee or manager of a trust are not included in the calculation What do I do if I currently hold a QBCC license? Categories 4 to 7 (those with higher revenue): Decreases in Net Tangible Assets of 20% or greater will need to be reported. Existing category 4–7 licensees are to provide their most recent financial statements to the QBCC by 31 March 2019, while all … 1 month 3 months Financial year to date 12 months Changes how category 4–7 licensees report decreases in Net Tangible Assets (NTA) Clarifies how assets are to be treated. Net Tangible Assets (NTA) – This is the total business assets (excluding intangible assets) less liabilities, as defined by QBCC. As a final reminder to keep the QBCC away you should always focus on the following QBCC rules: Don’t go over your maximum revenue amount by more than 10% without informing the QBCC Keep your ratio of current assets to current liabilities to at least 1:1 Ensure you meet your Net Tangible Assets … If you are an SC1 Licence Holder (income 200,001 - 800K) you need net tangible assets of at least $46,000. Under the QBCC rules, a trust cannot hold a builders licence, it must be held by the Trustee which can be a corporate entity or an individual. This is a test to show that the total business assets held less total liabilities meet the required amount specified by the QBCC for the relevant business turnover. Net Tangible Assets greater than 20 per cent. Businesses are required to hold a certain NTA in order to derive the licence MR. This will require licensees to monitor their net tangible asset position on an on-going basis. The annual reporting laws mean you must continue to provide financial information each year to keep satisfying these financial requirements. Net Tangible Assets; Net Tangible Assets (NTA) is effectively total assets less tangible assets and total liabilities. 2. Net Tangible Assets (NTA) is the total assets of a business, less any intangible asset such as goodwill, patents, and trademarks, less all liabilities. Talk to us to find out what that means, and what you can do about it. Our activities under the annual reporting requirements have resulted in the net tangible asset positions of category 4–7 licensees in Queensland improving by $272,127,342.” I pointed out to readers the commitment of the QBCC to act along these lines in several previous articles, namely: Building Businesses: QBCC contractor financial fails Current requirements with decreases in Net Tangible Assets of 30% or more requiring to be reported on will continue with the new MFR regulations. SC1 and SC2 licensees are only required to declare their revenue and Net Tangible Assets (NTA). Net Tangible Assets. First Report Due. It is a requirement of the QBCC that if a licenced company does not have net tangible assets that meet a minimum required amount, the company’s director, or potentially another associated party, must execute a QBCC Deed of Covenant and Assurance. This includes QBCC licensee compliance advisory. Combined with the defined amount of a Deed of Covenant and Assurance, the Net Tangible Assets must be sufficient to cover the actual revenue being carried out. for Turnover and Current Ratio calculations, the COMBINED position of the Trustee and the Trust is used. Self-Certification Cat. Must maintain Net Tangible Assets of at least $12k for SC1 and $46k for SC2; Must maintain a current ratio of at least 1:1 at all times – the current ratio is not mentioned in the Annual Reporting Form, however it is a requirement in the regulations. $12,000. Maximum revenue: Licensees cannot exceed their maximum revenue by 10% without prior approval by QBCC. In addition the Project Bank Account regime is still pending for the private sector. Documents/Information to be Provided. When you applied for your QBCC contractor-grade licence, you needed to show that you had the required working capital and net tangible assets. Note that the following assets are NOT counted in the calculation: personal furniture 30-Nov-19. It also includes a requirement for licensees in categories 4-7 to report to the QBCC any decreases in Net Tangible Assets (NTA) that are greater than 20%. 31 December 2019. – Licensees must provide more detailed financial information, such as more details about debtors, to inform a ‘balanced scorecard’. You can report that your turnover is $0, but you still need to hold the required Net Tangible Assets to support your licence category. NTA (Part 2) is not to … Your NTA will determine your maximum revenue (MR) that you can earn in the coming year. Some requirements around the NTA for licence holders are as follows: Importantly, Net Tangible Assets is not Net Assets… The QBCC provides a very useful calculator to assist with this calculation found HERE, which we recommend using regularly to make sure that your business aligns with your NTA. Tangible Assets are defined as any physical assets owned by a company that can be quantified with relative ease and are used to carry out its business operations. For Net Tangible Asset calculations, the position of the Trustee ONLY is used. 1 (SC1) Up to $200,000: $12,000: Declare revenue and net tangible assets in the online portal: 31 December 2019: QBCC to allocate and give licensee at least 40 business days’ notice: Self-Certification Cat. QBCC to allocate and give licensee at least 40 business days’ notice. More sensitive reporting triggers for higher risk licensees will let the QBCC know earlier of changes in a licensee’s financial position. A more holistic reporting If you are a ‘ high risk licensee’ as deemed by the QBCC – you will be required to inform QBCC earlier when it comes to changes in your financial position. Net Tangible Assets (NTA) (Part 1): Licensees must have the required level of NTA to support the revenue they are doing. The QBCC is focusing attention on the Maximum Revenue and Net Tangible Assets positions. The NTA is the calculation of a licensee’s assets minus their liabilities. The QBCC MFR Report is needed when you apply for a QBCC licence under Category 1 upwards. You are also required to submit a new MFR Report if you need to update some financial information about your business, including: Having decreased your Net Tangible Assets position by more than 20% or 30% (depending on your licence category) The “net tangible asset backing per ordinary share” figure, often abbreviated “NTA”, is one possible measure of the worth of a share, although its usefulness is subject to some reservations. – Categories SC1 to Category 3 required to report subsequent decreases of 30 per cent or more in Net Tangible Assets to the QBCC.