All construction and building work undertaken in Queensland requires the correct licence for the individual or company wishing to undertake the work. It’s important to ensure you have the right licence, approved and issued by the Queensland Building and Construction Commission (QBCC), to continue operating in the building industry in Queensland.

An issue that can cause problems for builder and trade licensees is understanding how their business is organised by their legal or business advisor and the implications these business structures have under builder and trade, State and Territory licensing legislation.  If you are planning to enter into a building and construction contract under a company name, you will require a QBCC Company Licence.

COMPANIES AND LICENSING

A company is an independent legal entity. Contracting for building work under a Company requires a licence. Companies are registered with the Australian Securities and Investments Commission (ASIC) and allocated a unique Australian Company Number (ACN). Companies are obliged to keep separate financial records and bank accounts and may also act as trustees of trust funds.

DO I NEED A LICENCE

There are some exemptions where the value of the building work exceeds a threshold. For example, in Queensland the general threshold is $3,300 (including labour and materials). Where the building work exceeds the threshold, the company in most instances, will require its own licence. Just because you have a personal licence, does not cover a company business structure. Running a business through an unlicensed company opens a can of worms including hefty fines for unlicensed building work.

HOW DOES A COMPANY GET A LICENCE?

In Queensland, a company may be granted a Builder or Trade Contractor licence if they meet certain requirements:

·        hold appropriate Company Registration with ASIC

·        meeting minimum financial requirements

·        the company directors, or any other person in a position to control the conduct of the company must be fit and proper

·        a licensed nominee supervisor licensed in the same class of licence as being applied for by the company. This licensee provides the onsite supervision, management and coordination of the building work undertaken by the company. The nominee must be an employee or director of the company. In the event the nominee does not already hold a licence, they will have to apply for a licence.

Need more information?

Don’t worry if this is sounding like an impossible task, you’re not alone. Licence2Trade can help you navigate through all of the requirements. We will ensure that you are advised appropriately to make an informed decision about the correct licences for your business structure.

Call Licence2Trade now to discuss your business licensing requirements.