Building deposit limits in every Australian state and territory

Deposit limit by state

Each line links to the government source on the state page.

• VictoriaUp to 10% for contracts under $20,000 and 5% for $20,000 or more.
• New South Wales10% for contracts of $20,000 or more, according to the NSW Government guide. Confirm smaller jobs with NSW Fair Trading.
• Queensland20% up to $3,300, 10% from $3,301 to $19,999 and 5% from $20,000. Up to 20% when more than half the work is built off site.
• Western Australia6.5% for fixed price contracts between $7,500 and $500,000.
• South Australia5% for domestic building contracts of $20,000 or more.
• Tasmania5% at $20,000 or more, and up to 20% when the off site work is more than half the price. The Act does not apply under $20,000.
• Australian Capital TerritoryNo legal limit on the initial deposit. About 10% is usual and warranty insurance covers up to $10,000 of a deposit.
• Northern Territory5% of the total contracted price, with a 50 penalty unit maximum for breaking the rule.

If a tradie asks for more

Asking for more than the legal deposit is a red flag. Ask the tradie to put the request in writing, then check it with your state regulator. In Queensland, the QBCC says deposits above the limit are unlawful and should be reported.

Pay by stage, not upfront

After a small deposit, tie each later payment to a finished stage of the work. Get every change in writing before the extra work starts.