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How much deposit can a tradesperson ask for?

The short answer

For residential building work, most states cap the deposit by law at a low percentage of the contract price. For general trade work below those thresholds there is no fixed cap, but a large upfront demand is a recognised warning sign.

TradieAnswers editorial · written in-house and sourced to the authorities listed below

Checked against 6 published sources, listed in full at the end of this page. How we source this

Two different regimes apply depending on what the work is. Residential building work above a state threshold sits under domestic building legislation, which caps deposits. Ordinary trade work, a plumber replacing a hot water system or a painter doing a room, sits under general consumer law, which does not set a specific figure.

Where a cap applies

Each state sets its own deposit cap on domestic building contracts, usually expressed as a percentage of the contract price with a different figure for smaller contracts. Check your own state's building regulator for the current number, because the percentages differ and they have been amended over time.

Where no cap applies

For smaller jobs a deposit is normal and reasonable, particularly where materials have to be ordered or made to measure. What is not normal is a deposit covering most of the job before anyone attends. The purpose of a deposit is to cover the contractor's commitment, not to fund the work.

Protecting a payment

  • Pay by a method that leaves a record and offers some recourse. Cash offers neither.
  • Get an invoice or receipt that names the business entity and its ABN, and check the ABN is active.
  • Tie the deposit to something specific, such as ordering materials, and ask for evidence of the order.
  • Be wary of any request to pay a deposit before a written quote exists.

Sources

Every source below was fetched and its response recorded on the date shown. Where a government site blocks automated clients, that is noted rather than reported as a successful check.

  1. Consumer rights and guarantees · Australian Competition and Consumer CommissionChecked 2026-08-10 · responded 200 OK
  2. ABN Lookup · Australian Business RegisterChecked 2026-08-10 · responded 200 OK
  3. Building Commission NSW · NSW GovernmentChecked 2026-08-10 · responded 200 OK
  4. Building contracts · Consumer Affairs VictoriaChecked 2026-08-10 · responded 200 OK
  5. QBCC · Queensland Building and Construction CommissionChecked 2026-08-10 · responded 200 OK
  6. Consumer Protection · Government of Western AustraliaChecked 2026-08-10 · responded 200 OK

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