Two different rules apply
Usually no legal percentage cap. Most plumbing, electrical, painting, landscaping, appliance, cleaning and handyman jobs. The deposit is by agreement.
State deposit caps can apply. Building work on a home above the state's written-contract threshold — a renovation, an extension, a deck, a new build — done under a building contract. Asking for more than the cap is a breach.
Legal deposit maximums by state (residential building work)
These caps apply to regulated residential building contracts above each state's written-contract threshold — not to a quick service call. Each figure was read at the regulator on 22 September 2026.
| State | Maximum deposit | Regulator |
|---|---|---|
| NSW | 10% of the contract price | NSW Fair Trading / Building Commission NSW |
| VIC | 10% under $20,000 · 5% at $20,000 or more | Consumer Affairs Victoria |
| QLD | 20% up to $3,300 · 10% ($3,301–$19,999) · 5% at $20,000+ · up to 20% if more than half the work is made off site | QBCC |
| WA | 6.5% of the contract price, on fixed-price work of $7,500–$500,000 | Building & Energy (Home Building Contracts Act) |
| SA | $1,000 if the work is up to $20,000 · 5% if over $20,000 | Consumer & Business Services |
| TAS | 5% on work of $20,000 or more · 20% if more than half the work is made off site | Consumer, Building & Occupational Services |
| ACT | No legal limit — industry practice is up to 10% | ACT Planning |
| NT | 5% under the standard schedule for prescribed work over $25,000; a different schedule needs the prescribed form | NT Building Practitioners Board |
Describe the job and find someone nearby. No account needed.
Find another tradie →What's normal on an ordinary trade job?
The deposit should make sense for the money committed before work starts. Jobs with little material cost may need little or no deposit. Material-heavy or custom work may justify more upfront.
- Small jobs, few materials — often no deposit, or a small amount to lock in the booking.
- Material-heavy jobs — enough to cover what has to be bought before the work starts.
- Big or custom orders — staged payments at milestones rather than one big amount up front.
Whatever the number, it belongs on the quote before anyone pays — the amount, what it covers, and when the balance is due.
Taking a deposit and going quiet is also prosecutable, not just bad form. In 2024 a WA court ordered a paver who took a 50% deposit and never started to refund the $2,535 plus a $4,000 fine, and the Commissioner's words were “you are breaking the law if you take money from customers and don't undertake the work in a reasonable time.”
Source: Consumer Protection WA, Paver pays for taking money without doing work, read 3 October 2026.
Before a deposit changes hands
- Get it in writing — the deposit amount, what it covers, and the payment terms, on the quote that is accepted.
- Pay it before materials are ordered, not before there is a quote — a deposit follows an agreed price.
- For building work, the written contract comes first — no deposit before the contract is signed.
- Use a trackable payment (PayID, bank transfer or a card link) so there is a clean record on both sides.
FAQ
Is there a legal limit on tradie deposits in Australia?
Only for regulated residential building work, where most states set a maximum (often 5–10%; WA 6.5%; the ACT none). For ordinary trade jobs there is no legal cap — the deposit is by agreement, and it should be reasonable and in writing.
Can a tradie ask for a 50% deposit?
On regulated building work in a state with a cap, no — that is a breach. On an ordinary job it is legal but unusual; a deposit that covers the materials is the fairer approach, and a big custom order is better handled with staged payments.
When is the deposit paid?
Once the quote is agreed and before materials are bought — and, for building contracts, only after the written contract is signed. Pay it by a method that leaves a record.
Related
Deposit limits for home jobs, state by state · What a written quote must include · Am I being ripped off by this quote?
General information, not legal advice. Deposit caps apply to regulated residential building contracts and vary by state; thresholds and rules change — confirm the current detail with your state building regulator before relying on it.