Which deposit rules apply to my job?
Deposits stop you funding a customer's materials out of your own pocket, and which rules bind you depends on the kind of work.
1. Everyday trade work — most plumbing, electrical, painting, landscaping, appliance, cleaning and general handyman jobs. There's no statutory deposit cap here; the amount is commercial negotiation. A deposit that covers your materials (and a bit of your time) is reasonable and expected.
2. Residential / domestic building work — regulated building contracts above a set value in your state. These have a legally enforceable maximum deposit, and charging more than the cap is a breach you can be reported for. If you do this kind of work, you must stay under the limit and use a written contract.
Legal deposit maximums by state (residential building work)
These caps apply to regulated residential/domestic building contracts above each state's written-contract threshold — not to a quick service call. Figures current as of mid-2026.
| State | Maximum deposit | Regulator |
|---|---|---|
| NSW | 10% of the contract price | NSW Fair Trading (Home Building Act 1989) |
| VIC | 10% under $20,000 · 5% at $20,000+ | Consumer Affairs Victoria |
| QLD | 10% ($3,301–$19,999) · 5% at $20,000+ · up to 20% if >50% is off-site work | QBCC |
| WA | 6.5% of the contract price | Building & Energy (Home Building Contracts Act) |
| SA | $1,000 if work is ≤ $20,000 · 5% if over $20,000 | Consumer & Business Services |
| TAS / ACT / NT | Less prescriptive — check the local rules | Your state/territory building regulator |
How much should you ask for on a normal job?
For unregulated work, base the deposit on your exposure, not a habit. A fair rule of thumb:
- Small jobs, few materials — often no deposit, or a token amount to lock the booking.
- Material-heavy jobs — enough to cover what you'll buy up front (frequently 10–30%), so you're never out of pocket.
- Big or custom orders — a larger progress-based structure (deposit, then payments at milestones) rather than one big upfront chunk.
Say it clearly before you start: there's a $X deposit to secure the booking and cover materials, with the balance on completion. Most customers are completely fine with it when it's upfront.
How do I protect myself when taking a deposit?
- Put it in writing — the deposit amount, what it covers, and the payment terms, on the quote the customer accepts.
- Take the deposit before you order materials, not after.
- For building work, sign the written contract first — never take a deposit before the contract is in place.
- Use a trackable payment (PayID/bank/card link) so there's a clean record.
FAQ
Is there a legal limit on tradie deposits in Australia?
Only for regulated residential building work, where each state sets a maximum (often 5–10%, WA 6.5%). For most everyday trade jobs there's no statutory cap — the deposit is by agreement, but it should be reasonable and in writing.
Can a tradie ask for a 50% deposit?
For regulated building work in states with a cap, no — that's a breach. For unregulated jobs it's legal but unusual; a deposit that covers your materials is the fairer, more trusted approach. Big custom orders are better handled with staged progress payments.
When should I take the deposit?
Before you buy materials or start work — and, for building contracts, only after the written contract is signed. Take it through a trackable method so there's a record.
Related
How to quote a job · Should you charge a call-out fee? · How much to charge per hour
General information for Australian businesses, 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.