Guide
Deposits and progress payments for tradies
Home building work has a legal deposit cap. It's 10% in New South Wales, 5% to 20% in Queensland depending on the price, and 5% or 10% in Victoria. After that you're paid as the work is done, stage by stage.
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The deposit cap, state by state
| State | Most you can take as a deposit | Progress payments | Source |
|---|---|---|---|
| New South Wales | 10% of the contract price | Fixed amounts after set stages of work, or as work is done and costs come in, backed by invoices or receipts | nsw.gov.au |
| Queensland | 20% for work of $3,300 or less, 10% from $3,301 to $19,999, 5% over $20,000. Up to 20% when customised or prefabricated work done off site is more than half the price | Must match the work done: no more than 50% of the price, deposit included, until at least half the work on site is done | qbcc.qld.gov.au |
| Victoria | 10% for contracts under $20,000, 5% for $20,000 or more | Paid as each stage is finished: base, frame, lock-up and fixing | consumer.vic.gov.au |
These caps are for residential building work under each state's home building law. Check whether your job counts as building work where you are.
Victoria's usual stage payments
The usual schedule, as a share of the total price, paid when each stage is finished. consumer.vic.gov.au
- Build to lock-up: Base 20%, frame 25%
- Build to fixing: Base 12%, frame 18%, lock-up 40%
- Build all stages: Base 10%, frame 15%, lock-up 35%, fixing 25%
Before you take the deposit
- In New South Wales, jobs over $20,000 need home building compensation cover. No deposit until it's in place and the customer has the certificate. nsw.gov.au
- In Victoria, give the customer the insurance certificate for work over $16,000. State the deposit and progress payments in the contract. consumer.vic.gov.au
- In Queensland, link progress payments to clearly defined stages, so the customer can check each one is finished. qbcc.qld.gov.au
Get each payment in without chasing
In Tradies Line the accepted quote becomes the job and then the invoice, and every invoice carries a pay link. With reminders on, the unpaid ones get followed up for you.
Questions
Can I take a deposit on a small job?
You can, within the cap. For small jobs like changing a powerpoint or unblocking a pipe, the NSW Government says a deposit is unlikely. It's more usual on bigger jobs where materials are a large part of the cost. In Queensland, work of $3,300 or less can carry up to a 20% deposit.
What happens if I take more than the maximum deposit?
The customer doesn't have to pay more than the lawful deposit. In Queensland, a customer who pays more can't recover the excess through the home warranty scheme, and in Victoria the insurance may not cover advance payments. Keep to the cap.
When can I claim a progress payment in Queensland?
When the work it pays for is done. QBCC says progress payments must match the work completed: you can't claim more than 50% of the price, deposit included, until at least 50% of the work on site is done.
What are the building stages in Victoria?
Base, frame, lock-up and fixing. For a contract to build all stages, the usual schedule is 10%, 15%, 35% and 25% of the price, paid as each stage finishes.
Do I need insurance before I take a deposit?
In New South Wales, work that must be covered by home building compensation can't take a deposit until the cover is in place and the customer has the certificate. In Victoria, domestic building insurance applies to work over $16,000, and customers are told not to pay the deposit until they see the certificate.
Checked against each state's page on 6 October 2026. This is general information, not legal advice. For contracts and a written quote, see the building quote template, or how to chase an unpaid invoice.
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