Work out your NTA
Use figures from a balance sheet prepared under the accounting standards, at the same date. Enter amounts in dollars; leave a line blank if it does not apply. Nothing you enter leaves your browser.
QBCC NTA calculator from Gold Coast QBCC accountants.
Estimate your net tangible assets, the QBCC maximum revenue they support and your current ratio, using the formulas in the Minimum Financial Requirements Regulation. A planning guide, not an MFR report.
Use the calculatorYour estimate
Enter your total assets and liabilities to see the result.
How QBCC calculates net tangible assets
The Regulation defines NTA as total assets, less liabilities, less intangible assets, less disallowed assets. Assets are valued under the Australian Accounting Standards. Book-value management accounts are accepted for annual reporting in SC1, SC2 and categories 1 to 3, but an MFR report for a new licence or a revenue increase needs accounts prepared under the full standards.
- Allowable assets include cash, inventory, motor vehicles, plant and equipment at carrying amount, real property, listed shares and tools of trade.
- Debtors count in full up to 180 days from invoice, at 50% from 181 days to under a year, and not at all after a year.
- Related-entity loans receivable count only if, on the same day, the related entity has NTA of at least nil in its own right (ignoring any deed of covenant) and a current ratio of at least 1. Amounts owed to related entities are always liabilities.
- Revaluations must follow the standards, cover the whole asset class and go to a revaluation reserve.
- A deed of covenant can add to NTA for categories 1 to 7, but not for SC1, SC2 or a sole trader.
NTA required for each QBCC category
| Category | Maximum revenue | Minimum NTA |
|---|---|---|
| SC1 | Up to $200,000 | $12,000 |
| SC2 | $200,001 to $800,000 | $46,000 |
| Category 1 | $800,001 to $3,000,000 | $46,000 to $156,000, on a straight line |
| Category 2 | $3,000,001 to $12,000,000 | $156,000 to $480,000, on a straight line |
| Category 3 | $12,000,001 to $30,000,000 | $480,000 to $1,200,000, on a straight line |
| Category 4 | $30,000,001 to $60,000,000 | $1,200,000 to $2,400,000, on a straight line |
| Category 5 | $60,000,001 to $120,000,000 | $2,400,000 to $4,800,000, on a straight line |
| Category 6 | $120,000,001 to $240,000,000 | $4,800,000 to $14,400,000, on a straight line |
| Category 7 | Over $240,000,000 | Maximum revenue ÷ 16.67 |
Every licensee must also keep NTA of at least nil and a current ratio of at least 1, and builders need at least $46,000. If NTA falls more than 30% below the last figure QBCC accepted (SC1 to category 3) or more than 20% (categories 4 to 7), a declaration or MFR report is due within 30 days of when you became aware, or ought reasonably to have become aware, of the decrease.
Before you rely on the number
This calculator follows the Regulation's formulas, but QBCC assesses the figures in your declaration or MFR report, and some items need judgement: prepayments, loans to individual directors, trust entitlements and asset valuations. For the current ratio, a related-entity loan counts only if that entity's current assets could repay it in full, and trustees, partnerships and groups need extra entity figures. If the result is close to a category edge, or you are planning a revenue increase, talk to us before lodging. See QBCC annual reporting and MFR reports for timing rules, or our construction accountants page.
Need an MFR report or a revenue increase?
Tell us your licence category, approved maximum revenue and the revenue you expect. We review the accounts against the MFR rules and agree the report scope before starting, from our Southport office.
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FAQ
QBCC NTA questions, answered
How do I calculate net tangible assets for QBCC?
Start with total assets, then subtract all liabilities, intangible assets and disallowed assets. Intangibles include goodwill, intellectual property, formation and borrowing expenses and deferred tax assets. Disallowed assets include recreational vehicles, unlisted shares, non-accessible super and debtors invoiced a year or more ago. Debtors invoiced more than 180 days but under a year count at half value. Loans owed to related entities stay in liabilities.
How much NTA does a builder need?
At least $46,000. A builder licensee cannot sit in SC1, so the lowest category available is SC2, which supports a maximum revenue of up to $800,000. Above that, the NTA required rises with the maximum revenue you hold: about $101,000 for $1.9 million, $156,000 for $3 million and $480,000 for $12 million. Trade contractors in SC1 need $12,000 for up to $200,000 of revenue.
Is the QBCC NTA requirement a percentage of revenue?
Not a flat one. SC1 and SC2 have fixed amounts. Categories 1 to 6 use a straight-line formula between the NTA at the bottom and top of each band, so the effective rate moves between about 4% and 6% of maximum revenue. Only Category 7, above $240 million, is a flat ratio: maximum revenue divided by 16.67, or roughly 6%.
What is the QBCC current ratio test?
Current assets divided by current liabilities must be at least 1 at all times, and the ratio must not be rounded up, so 0.999 fails. Current assets must also be allowable assets for NTA. Restricted cash is excluded, related-entity loans count only if that entity could repay in full, and an overdraft repayable on demand is a current liability.
Do loans to directors or related companies count as assets?
Only if they pass a test. A loan to a related entity counts as an asset only if, on the same day, that entity has net tangible assets of at least nil in its own right, ignoring any deed of covenant, and a current ratio of at least 1. Amounts the licensee owes to related entities are always liabilities. How a loan to an individual director is treated depends on the facts, so we review it before an MFR report.