QBSA v Flowtech Hydraulics Pty Ltd

The Queensland Building Services Authority (QBSA) brought an application against Flowtech Hydraulics Pty Ltd for exceeding its Allowable Annual Turnover (AATO) in two consecutive financial years. The Tribunal found that Flowtech breached its builder licence requirements by exceeding its AATO without notifying QBSA or obtaining its consent. The breaches occurred in the 2009-10 and 2010-11 financial years, with Flowtech exceeding its AATO by $14,558,739 or 135.72 percent and $12,841,183 or 77.1 percent, respectively. The Tribunal considered various factors, including Flowtech's history, steps taken to prevent recurrence, and the nature and extent of the breaches. The Tribunal found that the breaches were not intentional and resulted from unpredicted and unprecedented growth in revenue, coupled with a failure in internal procedures. The appropriate penalty was determined to be $7,500, considering the factors and comparable previous decisions. The Tribunal also ordered Flowtech to pay QBSA's costs of $1,500.

The Tribunal's decision was based on the relevant factors and previous decisions that considered similar circumstances. Flowtech's breaches were not intentional, and the company had taken steps to prevent recurrence, such as employing an in-house chief financial officer and implementing recommendations from an independent business review. The breaches were substantial, but the Tribunal considered the delay in prosecuting the breaches and Flowtech's Net Tangible Assets at the time of the breaches. The penalty range was determined to be $6,000 to $8,000, but the Tribunal found that the appropriate penalty for this case was $7,500. The Tribunal also considered the costs incurred by QBSA in preparing the application and determined that a modest amount of $1,500 was reasonable.