Figures checked 1 October 2026: the Queensland Building and Construction Commission (QBCC) requires licensees to maintain a current ratio of no less than 1:1 and net tangible assets (NTA) of at least $0. In plain terms, 1:1 means current assets and current liabilities are equal, while the QBCC's NTA guidance describes NTA as the working capital needed to run the business after liabilities, intangible assets and disallowed assets are deducted from total assets. QBCC bases the maximum revenue for the forthcoming year on the accepted NTA position.
What do the 1:1 and $0 minimums actually mean?
The current ratio compares current assets with current liabilities, so 1:1 represents an equal position between those amounts. QBCC presents 1:1 as a minimum, not as the turnover limit.
The NTA minimum of at least $0 is also a baseline. It does not mean working capital is irrelevant or that a business is financially positioned to trade at any turnover. QBCC separately requires enough working capital to support annual turnover, together with a set maximum revenue.
Meeting the current-ratio minimum does not replace the NTA calculation, maximum-revenue limit or other minimum financial requirements.
How is net tangible assets calculated?
QBCC uses the following structure:
| Component | Treatment in the NTA calculation |
|---|---|
| Total assets | Starting amount |
| Liabilities | Deduct all liabilities |
| Intangible assets | Deduct goodwill, patents and trademarks |
| Disallowed assets | Deduct amounts that cannot be included in NTA |
| NTA | Resulting working-capital position needed to run the business |
This means an asset may appear in the business accounts but still be excluded from NTA because it is intangible or disallowed. Reducing the value of excluded assets increases the calculated NTA, while recording a liability reduces it.
Which liabilities must be included in NTA?
All liabilities must be taken into account in the NTA calculation. No liability can be left out.
This includes:
- All related entity liability loans owing.
- Debts or obligations that must be paid or settled within a particular period.
- Debts or obligations payable on demand.
- Beneficiary or UPE loan liabilities owing to the licensee, or to the trust when the licensee is trustee. These must be recorded as current liabilities unless formal loan documentation allows an unconditional right to defer settlement.
The timing of payment does not automatically remove a debt from NTA. A liability that must be settled within a set period or on demand must still be accounted for.
How does NTA affect maximum revenue?
QBCC limits the maximum revenue a licensee can earn for the forthcoming year according to its NTA, which the regulator describes as working capital. It groups licensees into nine financial categories based on NTA and maximum revenue.
The following published QBCC ranges illustrate that relationship:
| Financial category | NTA | Maximum revenue |
|---|---|---|
| SC1 | $12,000 | Up to $200,000 |
| SC2 | $46,000 | Up to $800,000 |
| Category 1 | $46,001 to $156,000 | $800,001 to $3,000,000 |
| Category 2 | $156,001 to $480,000 | $3,000,001 to $12,000,000 |
| Category 3 | $480,001 to $1,200,000 | $12,000,001 to $30,000,000 |
| Category 4 | $1,200,001 to $2,400,000 | $30,000,001 to $60,000,000 |
| Category 5 | $2,400,001 to $4,800,000 | $60,000,001 to $120,000,000 |
| Category 6 | $4,800,001 to $14,400,000 | $120,000,001 to $240,000,000 |
These are the SC1, SC2 and Categories 1 to 6 ranges reproduced here; QBCC identifies nine categories overall, so check its live table for the complete category structure.
SC1 and SC2 have set NTA requirements and maximum revenue for the year. Licensees in the other financial categories must calculate either:
- Their maximum revenue based on known NTA; or
- The NTA required to cover known revenue.
QBCC provides an NTA/MR calculator for that estimate.
Is the financial category the same as the maximum revenue cap?
No. The financial category shown on the licence is a range, not the specific maximum-revenue amount.
QBCC uses the category range to calculate the licence renewal fee and determine the level of financial information required from the licensee. The specific maximum revenue is calculated from the accepted NTA position. It is the dollar amount at which turnover or earnings are capped for each financial year and sits within the relevant category range.
The financial category is reflected on the licence, and QBCC’s licence search can be used to check it. QBCC says this category is the only public information it releases about a licensee’s financial position.
How can a maximum-revenue amount be updated?
The maximum-revenue amount can only be updated by applying to QBCC and providing the required financial documentation. QBCC says this usually consists of an MFR Report and signed financial statements.
An internal NTA calculation or expected increase in turnover does not replace that application process.
Must the requirements be maintained while the licence is held?
Yes. QBCC says minimum financial requirements establish a baseline for all licensees and must be met and upheld at all times as a condition of holding a QBCC licence.
The requirements are intended to help reduce financial failure in the building and construction industry and help ensure people are paid for their work. QBCC determines the requirements through annual financial reports and by monitoring building-industry triggers and trends that may affect licensees.
A licensee that does not meet the requirements faces a greater risk of becoming insolvent and causing financial loss to creditors and consumers. QBCC says it will take appropriate enforcement action when a licensee fails the minimum financial requirements and there is a demonstrated risk associated with continuing to trade. As a risk-based regulator, it evaluates various factors before acting.
Regulation alone cannot prevent every insolvency. QBCC advises a person or entity at risk of insolvency to seek immediate professional financial, legal and/or insolvency advice.
What should a licensee verify before acting?
Check the current QBCC regulator page for the operative requirements and category ranges. If the decision relates to insurance, also read the relevant policy’s PDS: QBCC financial requirements and insurance coverage are separate matters.
This article is general information, not financial or legal advice, and does not determine insurance coverage.
Sources
- What are minimum financial requirements? | Queensland Building and Construction Commission
- Net tangible assets | Queensland Building and Construction Commission
FAQ
Does NTA of at least $0 mean no working capital is required?
No. $0 is the minimum baseline. QBCC also requires enough working capital to support annual turnover, subject to a set maximum revenue.
Are goodwill, patents and trademarks included in NTA?
No. QBCC identifies them as intangible assets that are deducted when calculating NTA.
Can related entity loans or on-demand debts be left out?
No. All liabilities must be included. Related entity liability loans and debts or obligations payable within a particular period or on demand must be taken into account.
Does the financial category state the exact annual turnover cap?
No. The category is a range. The specific maximum-revenue cap is calculated from the accepted NTA position and falls within that range.
Are QBCC minimum financial requirements only checked at licence renewal?
No. QBCC says they must be met and upheld at all times while the licence is held.