How much deposit can a builder ask for?

A quote asks for a big deposit up front. Is that allowed? Most states cap it by law, and the cap depends on where you live and the size of the job. Here's a summary for every state and territory, with links to the official rules.

Check before you pay: if a quote asks for more than the cap, ask why, and don't pay it until you've checked with your state regulator. In some states, money paid above the legal deposit isn't covered if the builder goes broke.

At a glance

State	Maximum deposit
South Australia	$1,000 if the contract is under $20,000; 5% if it's $20,000 or more
New South Wales	10%
Victoria	10% under $20,000; 5% at $20,000 or more
Queensland	20% for $3,300 or less; 10% under $20,000; 5% at $20,000 or more
Western Australia	6.5% for contracts from $7,500 to $500,000
Tasmania	10% from $20,000 to $50,000; 5% at $50,000 or more
ACT	No legislated maximum found; check with Access Canberra
Northern Territory	5% under the standard payment schedule

Some states allow a higher deposit (often up to 20%) when most of the work is made off-site, such as custom cabinetry. Details below.

South Australia

Deposit: a builder can't take a deposit of more than $1,000 on a domestic building work contract under $20,000, or more than 5% of the price if the contract is $20,000 or more.
Allowed up front: money for third-party costs such as council approval fees or building indemnity insurance.
Smaller jobs: since 10 November 2025, work under $20,000 counts as "minor domestic building work" (the line used to be $12,000). Contracts at $20,000 or more have stricter rules.
Insurance: since 10 November 2025, building indemnity insurance is needed for work over $20,000 that requires development approval.

Sources: Consumer and Business Services: Form 1, your building contract rights and obligations · Building Work Contractors Act 1995 · Advisory Notice Building 03/25: building indemnity insurance

New South Wales

Deposit: no more than 10% of the contract price before work starts.
Written contract: required for residential building work over $5,000 (including GST). Jobs from $5,000 to $20,000 use a small-jobs contract; larger jobs need a full contract.
Insurance: for work of $20,000 or more, the builder must give you a home building compensation (HBC) certificate before asking for any payment.
Copy of the contract: the builder must give you a copy of the signed contract within five business days.

Source: NSW Government: contracts for residential building work

Victoria

Deposit: no more than 10% if the total contract price is under $20,000, and no more than 5% if it's $20,000 or more.
Written contract: a major domestic building contract is required for most work worth more than $10,000.
Insurance: domestic building insurance is required for most work costing more than $16,000.
Changes to Victoria's domestic building contract laws have been proposed, so check the current rules for contracts signed from December 2026.

Source: Consumer Affairs Victoria: deposits and payments

Queensland

Deposit: up to 20% for work of $3,300 or less; up to 10% from $3,301 to $19,999; up to 5% at $20,000 or more.
Off-site work: up to 20% at any price if more than half the value is work done off-site.
Written contract: needed for domestic building work over $3,300.
If you pay more than the legal deposit, you can't recover the extra under the Queensland Home Warranty Scheme.

Source: QBCC: deposits and progress payments

Western Australia

Deposit: for building contracts from $7,500 to $500,000, the builder can't ask for more than 6.5% of the contract price.
Cooling-off: WA law doesn't require building contracts to include a cooling-off period, so read before you sign.

Source: Consumer Protection WA: building contracts

Tasmania

Deposit: up to 10% for contracts from $20,000 to $50,000, and up to 5% at $50,000 or more.
Off-site work: up to 20% at any price if more than half the work is done off-site.
Apart from the deposit, a builder can only ask for payments tied to progress of work on site.

Source: CBOS: Residential building consumer guide

Australian Capital Territory

We couldn't find a legislated maximum deposit for residential building work in the ACT. Master Builders ACT says the ACT Building Act doesn't set one. Agree a modest deposit tied to clear stages of work, and check with Access Canberra before you pay.

Sources: Access Canberra · Master Builders ACT

Northern Territory

Deposit: the standard payment schedule for a residential building contract allows no more than 5% of the total price before work starts.
A different schedule can only be agreed formally, on the approved forms.
You must sign the contract before work begins.

Source: NT Government: signing a residential building contract

Progress payments

After the deposit, payments should follow completed stages of work, not run ahead of them. Compare each quote's payment schedule as well as its total.

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General information only, not legal advice. Summarised from state regulators' guidance in October 2026. Rules change, so always confirm with your state regulator before relying on them.