A deposit is normal. A large deposit is a red flag. The deposit pays for the tradie to lock in your job and order materials — it is not meant to fund the whole project before the work is done.
What a fair deposit looks like
For most domestic jobs, a deposit of 10 per cent of the total is the benchmark, with the balance paid in progress payments tied to milestones. Small jobs may be paid in full on completion; large renovations are staged.
The legal caps by state
- NSW: for residential building work, the maximum deposit is 10 per cent of the contract price.
- Victoria: 10 per cent for work over $20,000; up to 5 per cent for larger contracts where required.
- Queensland: generally capped at 10 per cent (or 20 per cent for jobs under $20,000 in some contracts).
- WA, SA, TAS, ACT, NT: similar consumer-protection rules apply — check your state building authority for the exact figure on your contract value.
These are caps, not targets. A tradie asking for less is fine; one demanding far more is the problem.
Progress payments done right
On a staged job, payments should follow completed milestones — for example deposit, then frame, then lock-up, then completion. Never pay ahead of the work. Paying for a stage before it is finished removes your only leverage if something goes wrong.
Red flags on a deposit
- A demand for 40 to 50 per cent (or more) upfront.
- Cash only, with no invoice or receipt.
- Pressure to pay today to “lock in the price”.
- No written contract or scope behind the deposit.
Before you hand over a deposit, make sure you are paying for the right scope. Our guide on how to compare tradie quotes shows what each quote should spell out.
Know the price before you pay
With Quotefor.au you can get an instant itemised quote for your job, so you know the fair total — and therefore a fair deposit — before any money changes hands.