Running a trade business in Queensland: the QBCC, the $3,300 line and BIF Act money rules

Queensland gives its building regulator more reach than any other Australian state: licensing from $3,300, financial surveillance of licensees, a statutory insurance scheme and a payment regime with trust accounts. Here is the 2026 rundown.

QBCC licensing from $3,300

Building work over $3,300 including labour, materials and GST requires the appropriate QBCC licence class, and trade work such as electrical (licensed by the Electrical Safety Office), plumbing, gas and hydraulic services is licensed at any value. Unlicensed building work is prosecuted and payment is largely unenforceable beyond limited cost recovery. Interstate licence holders can use mutual recognition, but the licence must be in hand before contracting.

Minimum financial requirements

QBCC licensees must satisfy minimum financial requirements: net tangible assets and a current ratio matched to allowable annual turnover, with annual MFR reporting and event-driven notifications when assets fall. Miss the reporting or breach the ratios and licence suspension follows quickly. Treat MFR as a standing bookkeeping obligation, and warn your accountant before drawing money out of the company.

Home warranty and the BIF Act

The QBCC home warranty scheme collects a premium on insurable residential work over $3,300 and pays homeowners for defective or incomplete work, recovering from the builder, so defect management is financial risk management. On payment, the Building Industry Fairness (Security of Payment) Act provides payment claims, schedules and adjudication on the NSW model, plus Queensland's distinctive trust account framework: project trust accounts on eligible contracts and retention trusts protecting retention money down the chain.

WorkCover and GST

WorkCover Queensland covers employees, with contractor deeming tests for premiums, and GST is 10%. The QBCC licence register is public and heavily used by consumers, and demerit-style disciplinary history follows the licence, so compliance is also marketing.

FAQs for Queensland trade businesses

Why is $3,300 such an important number?

That is the QBCC licensing threshold including labour, materials and GST. Above it, unlicensed building work is illegal and largely unenforceable for payment, and the QBCC prosecutes. Trade work like electrical, plumbing and gas is licensed at any value.

What are minimum financial requirements?

QBCC licensees must maintain net tangible assets and current ratio levels for their revenue category and report annually. Falling below or failing to report can suspend your licence, so treat MFR as part of your bookkeeping, not an afterthought.

How do trust accounts affect my contracts?

Under the BIF Act framework, statutory trust accounts apply to eligible head contracts and retention trusts protect retention money. If you work on government or larger private projects, confirm whether your contract sits inside the trust account regime before invoicing.

This guide is general information, not legal advice. Licensing thresholds, payment statutes, insurance and tax rules change; always confirm current requirements with the regulator, a lawyer or your accountant before relying on them.