The QBCC Fit and Proper Person Test: Your Complete 2026 Guide
- John Merlo
- 1 day ago
- 10 min read
Passing the 'fit and proper person' test is the single most important character assessment in Queensland's construction industry. It is the gateway to obtaining and retaining a licence from the Queensland Building and Construction Commission (QBCC), acting as a crucial safeguard for both the public and the integrity of the sector.
This test, mandated by the Queensland Building and Construction Commission Act 1991 (QBCC Act), is designed to protect consumers, uphold professional standards, and ensure public confidence in the building and construction industry. Its purpose is to filter out individuals or companies that pose an unacceptable risk due to their past conduct, financial instability, or lack of integrity.
This rigorous assessment applies to all licence applicants, from individual trade contractors and site supervisors to the directors and influential persons of large construction companies.
Key Takeaways
Absolute Honesty is Non-Negotiable: Failing to disclose relevant events, especially financial issues like bankruptcy or past company insolvencies, is a primary reason for failing the test.
It's More Than Just Your History: The QBCC assesses your overall character, reputation, and financial stability to determine if you are suitable to hold a licence in the public interest.
Financial Viability is Scrutinised: You must meet minimum financial requirements and demonstrate responsible management of your financial affairs to be considered 'fit and proper'.
A Negative Decision Can Be Challenged: If the QBCC finds you are not a 'fit and proper person', you have the right to an internal review and can appeal the decision to the Queensland Civil and Administrative Tribunal (QCAT).
Your Duty of Disclosure: What the QBCC Needs to Know
Defining a "Relevant Event" for Disclosure
The QBCC Act legally obligates applicants and licensees to practice full and frank QBCC disclosure regarding their history. A central part of this duty is reporting any "relevant event." This legal term covers a range of incidents that the QBCC considers pertinent to assessing a person's suitability to hold a licence.
Key examples of a relevant event that must be disclosed include convictions for criminal offences (particularly those involving dishonesty or violence), any disciplinary actions taken against you by other professional or regulatory bodies, and any adverse judgments made against you in civil proceedings, especially those related to building work or contractual disputes. Failing to disclose such an event is a serious breach of your obligations.
The Heavy Weight of Financial "Relevant Events"
Among all the disclosures required, financial events carry the most significant weight and are scrutinised with the highest level of intensity. A financial "relevant event" or "bankruptcy event" can have severe consequences for your licence application or existing licence if not handled with complete transparency.
You are required to disclose any instance of personal bankruptcy or being subject to a Part IX or Part X debt agreement. Furthermore, you must report any involvement as a director, secretary, or influential person in a company that has experienced an insolvency event. This includes a company being placed into administration, receivership, or liquidation. The QBCC also considers it a relevant event if you were involved with a construction company that had its licence cancelled or suspended for failing to meet its minimum financial requirements.
Why Non-Disclosure is Often Worse Than the Event Itself
Attempting to hide a past issue from the QBCC is a critical and often fatal error in a licence application. The QBCC has extensive investigative powers and access to various databases, meaning it will likely uncover any undisclosed information through its own background checks. The act of deliberately concealing a relevant event is viewed as an act of dishonesty.
This failure to disclose directly undermines an applicant's claim to be a 'fit and proper person'. In many cases, the QBCC will refuse an application not because of the historical event itself, but because the applicant's dishonesty in failing to disclose it proves they lack the integrity required to hold a licence. This can often lead to an automatic refusal, making it much harder to re-apply in the future.
We consistently see applicants who could have potentially managed a historical issue through honest disclosure and a clear explanation. Instead, they choose not to disclose, and the QBCC's discovery of the omission becomes the primary reason for refusal. The act of hiding something is often viewed more harshly than the original event.
Navigating the Application and Ongoing Checks
The Initial Application: Getting it Right from the Start
The process of lodging a new QBCC application requires meticulous attention to detail, particularly in the sections where 'fit and proper person' declarations are made. You must be thorough and completely honest when answering questions about your financial history, past conduct, and any relevant events. It is crucial to attach all necessary supporting documents, such as explanations for past issues or evidence of financial stability, to provide the QBCC with a complete and transparent picture from the outset.
This initial submission forms the foundation of the QBCC's assessment of your character and suitability. A well-prepared, comprehensive, and honest application can prevent unnecessary delays, requests for further information, and heightened scrutiny. Getting it right from the start is the most effective way to ensure a smooth path to licensure and demonstrate your commitment to ongoing compliance.
This Isn't a One-Time Test: Ongoing Obligations
The 'fit and proper person' test is not a "set and forget" assessment conducted only at the time of your initial application or licence renewal. It is an ongoing standard that you must meet for the entire duration you hold a QBCC licence.
Licensees have a strict and ongoing legal obligation to notify the QBCC within 14 days if a new relevant event occurs. This duty of disclosure is absolute and covers everything from being charged with a serious criminal offence to personal bankruptcy or having a company you direct enter administration. Failure to meet this notification requirement is a breach of the QBCC Act and can trigger a QBCC investigation and disciplinary action.
How the QBCC Investigates and Verifies Information
Illustrative Example:
Consider 'Dave', a skilled builder applying for his own contractor's licence. On his application, he omits the fact that he was a director of a small development company that went into liquidation five years prior, thinking it was too long ago to matter. During its routine background checks, the QBCC's data-matching systems flag the historical insolvency event through ASIC records. This discrepancy triggers a formal "show cause" notice, putting Dave's application in serious jeopardy—not necessarily for the old insolvency, but for his deliberate failure to disclose it.
This scenario highlights the QBCC's investigative reach. They don't just rely on what you tell them; they actively verify information through various government and commercial channels.
A simple QBCC licence check is just the public-facing tip of the iceberg of their data verification capabilities.
What Happens if You Fail the Test?
Receiving a Licence Application Refusal
When the QBCC makes an initial determination that an applicant does not meet the 'fit and proper person' standard, the process for a licence refusal begins. The first step is the issuance of a formal notice to the applicant, which clearly outlines the reasons for the proposed refusal, citing the specific evidence or events that led to the decision.
Crucially, this is not the final word. The applicant has a legal right to respond to this notice, typically within a specified timeframe (e.g., 21 days). This is the first and most important opportunity to formally challenge the QBCC's findings by providing further information, clarifying misunderstandings, or presenting legal submissions to argue why you should be considered 'fit and proper'.
Facing Suspension or Cancellation of an Existing Licence
If a 'fit and proper' issue arises for an existing licensee—such as a new criminal conviction, a bankruptcy event, or a failure to disclose a relevant event—the QBCC can take severe disciplinary action. The process for licence suspension or licence cancellation typically starts with the QBCC issuing a "show cause" notice. This formal document requires the licensee to provide compelling reasons and evidence as to why their licence should not be suspended or cancelled. This can quickly escalate into a serious construction dispute with the regulator, threatening your livelihood and business operations.
The Path to Re-Applying After a Refusal
A licence refusal is not necessarily a life sentence, but re-applying successfully requires a significant and demonstrable change in your circumstances. The QBCC will not reconsider an application based on the same facts that led to the initial refusal. The applicant bears the onus of proving that the issues that made them 'not fit and proper' have been comprehensively resolved.
Simply waiting for a period of time to pass is not enough. You must provide tangible evidence of rehabilitation, financial recovery, or other positive changes. This might include completing relevant courses, demonstrating a long period of financial stability, or providing character references that speak to your reformed conduct. If you find yourself in this position, consulting with expert QBCC lawyers is a critical step to ensure your re-application is structured to succeed.
Challenging a QBCC Decision
Your First Step: The Internal Review Process
If the QBCC makes a final decision to refuse, suspend, or cancel your licence, you have a statutory right to an internal review. This is the first formal step in the appeal process and must be initiated within strict timeframes.
The internal review process involves having the original decision and all associated evidence re-examined by a different, more senior officer within the QBCC who was not involved in the initial determination. This provides a fresh set of eyes to assess the case. To be effective, your application for internal review should be supported by a well-structured written argument that clearly outlines why the original decision was incorrect, referencing relevant facts, evidence, and points of law.
Escalating Your Case to the Tribunal (QCAT)
If the internal review process upholds the original negative decision, the final avenue of appeal is the Queensland Civil and Administrative Tribunal. QCAT is an independent body, separate from the QBCC, that has the power to hear the case anew and make a fresh decision.
Appealing to the Queensland Civil and Administrative Tribunal (QCAT) is a formal legal process. It is not an informal discussion; it is a merits review where both you and the QBCC will present evidence and make legal arguments before a tribunal member. Given the formal nature of the proceedings and the complexities of administrative law, seeking professional litigation and dispute resolution advice is essential for presenting the strongest possible case.
Why Professional Legal Guidance is Crucial
Navigating a QBCC appeal process alone, whether at the internal review stage or before QCAT, is a significant risk. The process involves complex legal principles derived from the QBCC Act and broader administrative law, which can be challenging for a layperson to understand and apply effectively.
An experienced building and construction lawyer understands the legal tests, the rules of evidence, and how to frame persuasive arguments that address the core issues of the 'fit and proper person' criteria. They can assist in gathering the necessary evidence, preparing compelling written submissions, and representing your case effectively at a QCAT hearing.
Ultimately, professional guidance maximises your chance of achieving a successful outcome and protecting your licence and livelihood. For more information on navigating these complex issues, see our legal publications.
Conclusion
The QBCC's 'fit and proper person' test is the cornerstone of regulatory oversight in Queensland's construction industry. It is a comprehensive, ongoing assessment designed to ensure that every licensee possesses the integrity, financial stability, and character necessary to operate responsibly. For applicants and existing licensees, understanding the depth of this scrutiny—from personal probity and financial history to the absolute duty of disclosure—is not optional; it is essential for a sustainable career.
Failing to be transparent about past financial difficulties or other relevant events is often a more significant barrier to licensure than the events themselves. The QBCC values honesty above all else. Should you face a negative decision, it is crucial to remember that structured appeal pathways exist. Navigating an internal review or a QCAT hearing requires a strategic, evidence-based approach. Engaging expert legal counsel early in the process can be the decisive factor in successfully challenging a decision and securing your professional future in the industry.
FAQs
What is the single biggest mistake people make on their QBCC licence application regarding the 'fit and proper' test?
The most common and damaging mistake is non-disclosure. Applicants often believe that a past issue, such as a minor criminal conviction or a company insolvency from many years ago, can be hidden. The QBCC has extensive investigative resources and will almost certainly discover the omission. The act of dishonesty in failing to disclose is often viewed more severely than the original event, leading to an immediate refusal on character grounds.
I went bankrupt six years ago but have been financially stable since. Will this automatically disqualify me?
Not necessarily. While a past bankruptcy is a significant "relevant event" that must be disclosed, the QBCC will consider the context. Factors in your favour include the time elapsed since the bankruptcy was discharged, a demonstrated period of subsequent financial stability, the reasons for the bankruptcy (e.g., a business failure versus personal irresponsibility), and the proactive steps you have taken to manage your finances since. Full disclosure and a clear, honest explanation are critical.
Does a director's personal traffic offence history affect a company's QBCC licence?
Generally, minor traffic offences (e.g., speeding fines) are not considered relevant to the 'fit and proper person' test. However, serious criminal traffic offences, such as drink driving, dangerous driving causing harm, or repeated disqualifications, could be considered by the QBCC as they may reflect on a person's character and willingness to comply with the law.
Our company received a "show cause" notice from the QBCC. What is the first thing we should do?
The very first thing you should do is seek professional legal advice from a lawyer experienced in QBCC matters. Do not attempt to respond without guidance. A "show cause" notice is a serious formal step that can lead to licence suspension or cancellation. A lawyer can help you understand the specific allegations, gather the necessary evidence for your response, and formulate a legal argument that addresses the QBCC's concerns within the strict timeframe provided.
If my internal review is unsuccessful, how long do I have to appeal to QCAT?
There are strict time limits for filing an appeal with QCAT. Typically, you must file an "Application for review of a decision" with the tribunal within 28 days of receiving the notice of the internal review decision. Missing this deadline can result in losing your right to appeal, making it essential to act promptly after receiving the outcome of the internal review.
This guide is for informational purposes only and does not constitute legal advice. For advice tailored to your specific circumstances, please contact Merlo Law
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