The short answer
Most states cap the deposit a tradie can ask for on building work, usually at 5% to 10% of the contract price, and breaking the cap can mean fines. Check your state's limit before you write a payment schedule, and show it on your quote so customers trust you.
General information from government pages checked on 11 November 2026, not legal advice. Confirm with your regulator.
Where the limits sit
See the full table with sources on our deposit limits page. In short:
- Victoria: 10% under $20,000 and 5% from $20,000
- Queensland: 20% up to $3,300, 10% to $19,999 and 5% from $20,000
- Western Australia: 6.5% for contracts between $7,500 and $500,000
- South Australia, Tasmania and the Northern Territory: 5% for larger contracts
- The ACT has no legal cap on the initial deposit
Why it helps you to stay under the cap
Customers are warned by regulators to be wary of big upfront payments. A small deposit, tied to a start date, shows you are not a risk. It also keeps you on the right side of the law.
Write it into every quote
State the deposit as a percentage and a dollar amount, list the stage payments after it and say when the balance is due. Put your licence or registration number at the top.
Common questions
What happens if I ask for too much deposit?
In Queensland the QBCC says deposits over the limit are unlawful. In the NT, the regulation carries a maximum penalty of 50 penalty units. Check your own state.
Can I ask for more deposit if materials are custom made?
Queensland and Tasmania allow up to 20% when more than half the work is built off site. Check your state's rule.
Sources
- Consumer Affairs Victoria: deposits and payments, checked 11 November 2026
- QBCC: understanding deposits and progress payments, checked 11 November 2026
- Building and Energy WA: building or renovating your home, checked 11 November 2026
- SA.GOV.AU: builder responsibilities, checked 11 November 2026
- NT Building Regulations 1993, checked 11 November 2026