According to the Queensland Building and Construction Commission (QBCC), SC1 starts with $12,000 in net tangible assets (NTA) and is paired with maximum revenue of up to $200,000, while SC2 starts with $46,000 in NTA and is paired with maximum revenue of up to $800,000. The QBCC source was updated 30 June 2024; figures checked 1 October 2026. The financial category is not itself the specific revenue cap: it is a range used for licence administration, while QBCC’s calculated maximum revenue is the applicable annual amount.
This is general information, not financial or legal advice. Before making a decision, check the QBCC regulator page and the product disclosure statement (PDS) for your policy.
What are the SC1 and SC2 revenue limits?
QBCC groups licensees into nine financial categories based on NTA and maximum revenue. The published SC1 and SC2 rows are:
| Financial category | NTA | Maximum revenue |
|---|---|---|
| SC1 | $12,000 | Up to $200,000 |
| SC2 | $46,000 | Up to $800,000 |
These amounts describe the relationship between each category’s NTA requirement and its maximum-revenue range. They do not mean every SC1 or SC2 licensee automatically receives the upper amount as their individual revenue cap.
How is net tangible assets calculated?
The QBCC describes NTA as the working capital needed to run the business. Its calculation is:
NTA = total assets − liabilities − intangible assets − disallowed assets
Intangible assets include goodwill, patents and trademarks. When calculating NTA:
- All liabilities must be taken into account.
- Related entity liability loans owing must be included.
- Debts or obligations that must be paid within a certain period or on demand must be included.
- Beneficiary or UPE loan liabilities owing to the licensee, or to the trust when the licensee is trustee, must be recorded as current liabilities unless formal loan documentation permits the unconditional deferral of settlement.
The relevant assets and liabilities therefore need to be assessed together rather than looking only at the money in a business account.
Is the financial category itself the revenue cap?
No. QBCC states that the financial category is a range used to calculate the licence renewal fee and determine the level of financial information required by the regulator.
The category information appears on the licence. However, the specific maximum revenue calculated from the licensee’s accepted NTA position is the annual dollar cap on turnover or earnings. That specific amount must fall within the applicable category range.
This distinction matters when comparing SC1 and SC2:
- SC1 has an NTA requirement of $12,000 and a maximum-revenue range up to $200,000.
- SC2 has an NTA requirement of $46,000 and a maximum-revenue range up to $800,000.
The category tells you where the licensee sits within the QBCC framework; the calculated maximum-revenue amount provides the specific annual limit.
How does QBCC determine maximum revenue?
QBCC bases the maximum revenue a licensee can earn for the forthcoming year on the value of their NTA. The calculated maximum revenue then helps place the licensee into the relevant financial category.
For licensees outside the set SC1 and SC2 requirements, QBCC directs them to calculate either:
- Their maximum revenue based on known NTA; or
- The NTA required to cover their known revenue.
The regulator provides an NTA/MR calculator for this purpose. A licensee should not treat the category label alone as the exact amount they may turnover or earn.
What is needed to change a maximum revenue amount?
A new maximum revenue amount can only be updated through an application to QBCC. The application must include the required financial documentation, which usually consists of:
- An MFR Report; and
- Signed financial statements.
The practical sequence is to establish the accepted NTA position, determine the relevant maximum revenue or required NTA, then apply to QBCC with the requested documentation. The category or revenue amount should not be treated as updated independently of that process.
Sources
FAQ
Does an SC1 licence automatically have a $200,000 revenue cap?
No. $200,000 is the upper end of the maximum-revenue range shown for SC1. The specific annual cap is the maximum revenue calculated by QBCC from the accepted NTA position.
Does an SC2 licence automatically have an $800,000 revenue cap?
No. $800,000 is the upper end of the maximum-revenue range shown for SC2. The licensee’s specific annual maximum revenue is calculated separately and must fall within the applicable category range.
What counts when calculating NTA?
NTA is total assets less liabilities, intangible assets and disallowed assets. All liabilities must be included, along with specified related entity loans and debts or obligations payable within a certain period or on demand.
Can a licensee change their maximum revenue without an application?
No. QBCC states that a maximum revenue amount can only be updated by applying to the regulator and providing the required financial documentation, usually an MFR Report and signed financial statements.
What financial information can the public check?
QBCC’s licence search allows a person to check the licensee’s financial category. QBCC says this category is the only public information it releases about a licensee’s financial position.
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