Tools · Before you pay a deposit

Before you pay a deposit: what the law in your state allows

The deposit a tradesperson can ask for is capped by law, and the cap changes by state and job size. So do the licence, written contract and insurance rules. Check what applies at your job value, with every rule cited to the act and your state regulator, verified on 2026-07-17.

What applies at your job value

Pick your state and a rough job value. The requirements that apply at that value appear below, with the official source behind each one. Your final signed contract price decides, not the estimate.

Choose a state and a value to see the requirements that apply at that size of job.

New South WalesIn NSW, deposits for residential building work are capped at 10 percent of the contract price. General building work over $5,000 needs a licence, and work over $20,000 needs insurance cover before any money is paid.VictoriaIn Victoria the deposit cap halves once a job reaches $20,000 (from 10 percent to 5 percent), work over $10,000 needs a registered builder on a major domestic building contract, and contracts signed from 1 July 2026 need Home Warranty cover for work over $20,000 before any money changes hands.QueenslandIn Queensland the deposit cap steps down with job size (20 percent up to $3,300, then 10 percent, then 5 percent from $20,000), a QBCC licence is required above $3,300, and the Home Warranty Scheme covers most residential work above the same line.

Whatever the value, check the licence first

Every state runs a free official register. It is the single strongest check before any money moves:

Then see the public evidence we hold: check a business by name or browse the registers we track.

Common questions

How much deposit can a tradie ask for?

It depends on your state and the contract value. In NSW, residential building-work deposits are capped at 10 percent. In Victoria it is 10 percent under $20,000 and 5 percent at $20,000 or more. In Queensland it steps from 20 percent (small jobs up to $3,300) to 10 percent, then 5 percent at $20,000 or more. The cap binds on the final signed contract price.

Is a 30 percent deposit legal?

For residential building work in NSW, Victoria and Queensland, a 30 percent deposit is above the legal cap. Queensland's off-site work rule can allow up to 20 percent when more than half the contract value is genuine off-site work such as prefabrication. Check the rule for your state and talk to the regulator before paying.

When does a tradesperson need a licence?

Each state sets its own threshold: general building work over $5,000 in NSW, over $10,000 in Victoria (a registered building practitioner), and over $3,300 in Queensland. Electrical, plumbing and gas work needs a licence at any value everywhere. The licence checks are free and official.

What happens if I pay more than the legal cap?

The caps exist because a large deposit is the most common way homeowners lose money to bad operators. If an ask is above the cap, that is a fact worth raising with the tradesperson and, if needed, your state regulator. This page cannot tell you what to do in your specific situation; the regulator can.

This is guidance from the public rules, not legal advice. The thresholds bind on your final signed contract price, not an estimate, and state law changes. Check the regulator's current page before you sign or pay anything.

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