QBCC Disallowed Assets List & Fixes

Your balance sheet says you are worth plenty. QBCC disagrees. The difference is usually disallowed assets – items that count in your accounts but not in your Net Tangible Assets calculation. Knowing the list before reporting season saves expensive surprises.

The usual suspects

Goodwill and intangibles. Brand value, customer lists, formation expenses, capitalised borrowing costs – all stripped out, no exceptions.
Related-party and director loans. The big one. Amounts owed to the company by directors, family members or related entities are disallowed in many circumstances, particularly where there is no genuine capacity or arrangement to repay.
Unsecured advances. Money lent informally to mates, associates or other businesses.
Some personal-use and lifestyle assets. Depending on your structure, assets that cannot realistically back the business.
Assets held in trust complications. Trust structures need careful documentation for assets to count.

Why this bites in December

During the year the owner draws $150,000 from the company as a loan rather than wages or dividends. At reporting time the accountant books a $150,000 director loan receivable. QBCC disallows it, NTA falls below the category minimum, and now there is a compliance problem – in the busiest month of the year.

What you can do about each one

Director loans: clear them before balance date – declare dividends or wages (mind the tax), or genuinely repay the funds.
Restructure debt: converting short-term liabilities to properly documented long-term facilities can repair the current ratio at the same time.
Capital injection: a documented contribution of cash or allowable assets lifts NTA directly.
Deed of covenant and assurance: in limited cases and categories, a covenantor’s assets can support your NTA – with strict rules on how much.

Every fix takes longer than you think once tax consequences are considered, which is exactly why we run NTA reviews for construction clients in spring, not December.