Queensland Plumber Licence Finance: NTA, 9 Categories and Maximum Revenue

Net tangible assets (NTA) are the working capital a licensee needs to run the business, and QBCC uses the accepted NTA position to calculate the maximum turnover permitted in a financial year. The Queensland Building and Construction Commission (QBCC) financial-category table, updated 30 Jun 2024, lists SC1 at $12,000 NTA and maximum revenue up to $200,000, SC2 at $46,000 NTA and maximum revenue up to $800,000, and 9 financial categories overall; figures checked 1 October 2026. A financial category is a range used to calculate the licence renewal fee and determine the financial information required—it is not the specific annual revenue cap.

How is NTA calculated?

QBCC’s calculation is:

NTA = total assets − liabilities − intangible assets − disallowed assets

Intangible assets include goodwill, patents and trademarks. All liabilities must be taken into account, including:

• Related entity liability loans owing.
• Debts or obligations that must be paid or settled within a particular period or on demand.
• Beneficiary or UPE loan liabilities owing to the licensee, or to the trust when the licensee is trustee. These are recorded as current liabilities unless formal loan documentation allows settlement to be unconditionally deferred.

QBCC states that liabilities cannot be deducted or removed from the NTA calculation under any circumstances. A lower NTA position can therefore result from the business having more intangible value or liabilities, even if its total assets appear substantial.

How do SC1 and SC2 show the working-capital relationship?

Maximum revenue is the maximum turnover a business can earn in a financial year based on its financial situation. QBCC sets it for the forthcoming year according to the licensee’s NTA, which represents working capital.

QBCC states that SC1 and SC2 have set NTA requirements and maximum revenue for the year. The comparison shows SC2 carrying both a higher NTA figure and a higher maximum-revenue ceiling than SC1.

A licensee’s calculated maximum revenue, based on its accepted NTA position, places it in one of the 9 financial categories. For categories other than SC1 and SC2, the licensee must calculate either:

• Maximum revenue based on known NTA; or
• The NTA required to cover known revenue.

The QBCC NTA page provides an NTA/MR calculator for those calculations.

Why is the category not the same as the annual revenue cap?

The category is a range. QBCC uses it to calculate the licence renewal fee and determine how much financial information must be provided. The category displayed on the licence therefore identifies the applicable financial range, not the precise amount the licensee may turnover or earn in a financial year.

The specific maximum revenue is the dollar amount calculated from the accepted NTA position. QBCC states that this amount is capped for each financial year and falls within the relevant category range. This is why “up to” in the SC1 and SC2 rows must not be treated as a substitute for the licensee’s specific maximum-revenue position.

The QBCC licence search can confirm the category recorded against a licence. QBCC says this is the only public information it releases about a licensee’s financial position.

How do I check or update my position?

Use the following process:

• Check the category on the licence. The financial category is reflected there and can also be checked through the QBCC licence search.
• Confirm the NTA position. The maximum-revenue calculation must be based on the accepted NTA position.
• Use the QBCC NTA/MR calculator where needed. Licensees outside SC1 and SC2 can work from either known NTA or known revenue.
• Apply to QBCC to change maximum revenue. QBCC says the amount can only be updated through an application with the required financial documentation, usually an MFR Report and signed financial statements.
• Check the category-specific requirements. The category determines the level of financial information that must be provided to QBCC; the cited guidance does not specify one reporting date or identical document list for every category.

The QBCC’s minimum financial requirements guidance, updated 18 Oct 2021, describes minimum financial requirements as a baseline that licensees must meet and uphold as a condition of holding a licence. QBCC determines those requirements through annual financial reports and by monitoring building-industry triggers and trends that may affect licensees.

This is general information, not financial or legal advice. Check the QBCC regulator page for current thresholds and reporting instructions, and review your policy’s PDS before making or changing insurance cover.

Sources

• Net tangible assets | Queensland Building and Construction Commission
• What are minimum financial requirements? | Queensland Building and Construction Commission

FAQ

Does the category on my licence tell me my exact annual earnings limit?

No. The category is a range. QBCC calculates a specific maximum-revenue amount from the accepted NTA position, and that amount is the annual turnover or earnings cap.

What is deducted when calculating NTA?

NTA is total assets less liabilities, intangible assets and disallowed assets. Intangible assets include goodwill, patents and trademarks, while all liabilities must be included.

Can a related-entity loan be ignored when calculating NTA?

No. All related entity liability loans owing must be included, along with debts or obligations payable within a particular period or on demand.

How is a beneficiary or UPE loan treated?

It must be recorded as a current liability unless formal loan documentation allows settlement to be unconditionally deferred. That treatment does not remove the underlying liability from the NTA calculation.

What documents are needed to update maximum revenue?

Maximum revenue 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.