From 1 November 2021, the Federal Government has implemented a new layer of accountability for company directors. Directors are now required to obtain a Director Identification Number, which will assist regulators and others to correctly identify the directors of companies

On 25 May 2020, the Justice and Other Legislation Amendment Act 2020 (Qld) came into force. It included amendments to the Legal Profession Act 2007 (Qld) (the Act) which broadened the meaning of suitability matter and a show cause event to include where a person is a director of a company (whether related to law practice or not), which becomes insolvent.

The QBCC announced on 8 February 2021 that as a result of the annual reporting and MFR process, their compliance action in December 2020 and January 2021 resulted in 12 licenses suspended or terminated and over 60 licenses suspended. We expect the QBCC will adopt a more hard-line approach in 2021 to MFR requirements so all license holders need to be certain they can provide the required information as part of submitting their annual financial reports and meet the MFR.

There were other changes, which commenced on 1 October 2020 aimed at improving contractors’ ability to recover outstanding payments.

There are often similar characteristics or issues which indicate potential insolvency or significant financial challenges ahead, and may make a restructure more difficult to undertake.

Further reforms to the Queensland Building and Construction Commission Act 1991 and other associated Acts came into effect on 1 October 2020 with one of the key aspects directlying affect those Accountants assisting licensees with Minimum Financial Requirements reporting.

Construction industry licensees must have sufficient working capital to meet Minimum Financial Requirements. Annual financial reports have been introduced to check the financial strength of contractor grade licensees in Queensland and its a big deal.

Newly released AFSA data highlights the importance of protective mechanisms such as the PPSR for suppliers (or anyone extending credit) and understanding the application of same in a business environment.

WCT Advisory has celebrated its one-year anniversary on 1 July 2020. After a successful first year, our team has grown to 5 and we are excited to continue to our journey with you all and expanding the practice further.

Exciting times for WCT Advisory with the (belated) installation of the office signage, website launch and additional team members.

Working capital is a daily necessity for businesses, as they require a regular amount of cash to make routine payments and purchase basic materials/services and pay wages used in the generation of its products/services.