SecureBuild has set minimal financial requirements (MFR’s) that need to be met in order to be registered as a member and obtain cover from us. Principally, the MFR is the net tangible assets your building business holds.

Your building business’s ability to meet our minimum financial requirements needs to be validated by your Accountant. If you don’t currently have HBC cover, prior to lodging your application with us you should have your Accountant complete our 3-page MFR Report.

Builders and contractors who have existing cover with another provider do not need to provide us with an MFR report.

SecureBuild has prepared a MFR guide to assist your Account complete the report you require to complete your application for membership registration (eligibility) or  increase to turnover level. To download the guide, click here.

The Net Tangible Asset (NTA) position of your building business will determine the turnover level SecureBuild will allocate to you. The table below sets out our NTA requirements and the turnover levels applicable.


Annual Turnover $0 – $1m $1m – $2m $2m – $5m $5m – $20m $20m – $60m $60m – $120m $120m – $240m >$240m
Category 5 4 3 2 1 1+ 1++ 1++
Net Tangible Asset (NTA) Requirement $12,000 to $36,000 $36,001 to $105,000 $105,001 to $270,000 $270,001 to $1,200,000 $1,200,001 to $2,400,000 $2,400,001 to $4,800,000 $4,800,001 to $14,400,000 >$14,400,000
No. of projects* 1 to 2 2 to 5 5 to 20 20 to 50 50 to 150 150 to 300 300 to 600 >600

*Average project value of $400,000


It is a financial requirement that applicants must have sufficient Net Tangible Assets (NTA) in their own right. These requirements ensure that builders have sufficient capital with which to run their building business and avoid insolvency/bankruptcy events.

The NTA has to be sufficient for their turnover limit. The higher the turnover level of applicant or builder, the higher the NTA required.

Net Tangible Assets is calculated using the following formula:

NTA = Assets Liabilities Intangible Assets Disallowed Assets


An asset is something owned both legally and beneficially by your building business (that is, it does not include assets which are held on trust for another person or corporation) and includes but is not limited to the following:

(a)           Cash;

(b)           Construction Contract Work in Progress;

(c)           Debtors (if collectible);

(d)           Inventory;

(e)           Investments (if collectible);

(f)           Investments valued using equity accounting methodology only where included in general purpose financial statements;

(g)          Motor vehicles;

(h)          Plant and equipment at written down value;

(i)           Real estate;

(j)           Related Entity loans and investments (only if assessed as collectible);

(k)          Shares in publicly listed companies;

(l)           Tools of trade.

Assets that cannot be included as asset include the following:

(a)          Intangible assets;

(b)          Assets not assessed as collectible;

(c)           Boats, ships, jet skis, planes, helicopters, race horses and racing cars;

(d)           Collectors’ items (e.g. paintings, stamps, coins);

(e)           Contingent assets;

(f)            Furniture (personal);

(g)           Investments or shares in companies that are not publicly listed companies;

(h)           Investments valued using equity accounting methodology where included in special purpose financial statements;

(i)            Trade or barter dollars and any equivalent scheme;

(j)            Trust assets; and

(k)           Units in trusts that are not publicly listed;

(l)            Unvested superannuation benefits;

(m)          Life or income protection insurance policy benefits.

Assets at (b) to (m) above are Disallowed Assets.

Further details can be found in our MFR policy guide.