The most a builder may ask for as a deposit on a home building contract depends on the state, and in some states on the size of the job. From the regulators’ own pages, read on 13 November 2026: New South Wales 10 per cent, Victoria 10 or 5 per cent depending on price (with new laws due to take effect by 1 December 2026), Queensland generally 20, 10 or 5 per cent by price band, and Western Australia 6.5 per cent on contracts covered by its Home Building Contracts Act. This article sets them out, with the page each comes from.
Rules change and have conditions. Treat this as a map to the regulator’s page, not a replacement for it, and check the current version for your job. It is not legal advice.
Why the rule exists
A deposit is money the homeowner pays before any work is done. If the builder fails, that money is at risk. Limits keep the amount small enough that the loss is bearable and the builder cannot use early payments to fund other jobs. The sections below show how each regulator sets the line.
The limit applies to the deposit under a building contract. It is a different thing from a fee for early work under a separate agreement, covered further down.
Building contract deposit limits in each state
| State | What the regulator’s page says | Source |
|---|---|---|
| New South Wales | Maximum deposit is 10 per cent of the contract price. Written contract required over $5,000 including GST. For work covered by the Home Building Compensation Scheme, no deposit may be asked until cover is in place and the certificate given. | NSW Government, contracts |
| Victoria | No more than 10 per cent if the total contract price is less than $20,000. No more than 5 per cent if it is $20,000 or more. Changes are coming: new laws take effect by 1 December 2026 and let deposit limits be set in regulations, so check the current rules. | Consumer Affairs Victoria, deposits and payments |
| Queensland | The QBCC says the maximum deposit is generally 5 per cent for $20,000 or more, generally 10 per cent for $3,300 to $19,999, and 20 per cent for $3,300 or less. | QBCC, seeking and comparing quotes |
| Western Australia | For projects under the Home Building Contracts Act, a deposit of no more than 6.5 per cent of the total cost of the work. The Act covers fixed-price contracts valued between $7,500 and $500,000. | WA Building and Energy announcement |
| South Australia, Tasmania, ACT, Northern Territory | Not covered here. We did not open a regulator page for these. Check your own regulator. | None |
A few details sit behind those lines.
New South Wales. The same page sets small jobs contracts at $5,000 to $20,000 and large jobs contracts over $20,000. Check how the deposit is described in the contract itself.
Victoria. The deposits page was last updated on 9 July 2025 and carries a notice that the Domestic Building Contracts Amendment Bill 2025 passed the Victorian Parliament on 11 September 2025. Consumer Affairs Victoria’s notice on the new laws says they take effect by 1 December 2026, that deposit limits, progress payment stages and progress payment limits can be set in regulations, and that the current laws stay in place for now. It does not give new deposit figures. Check the current page before you set a Victorian deposit. Separately, a written major domestic building contract is required for work over $10,000 (Consumer Affairs Victoria checklist).
Queensland. The QBCC uses the word "generally", says a deposit is not required until a contract is signed, and says deposits over the maximum are unlawful. Its separate page on domestic building contracts says domestic building work priced over $3,300 including labour, materials and GST needs a written contract (QBCC, domestic building contracts). That page does not give deposit limits.
Western Australia. Home indemnity insurance is required for residential building work valued above $20,000, and the page says it must be in place before work starts or any deposit is demanded. Those are insurance rules and do not cap deposits.
This is general information only. It is not legal advice. Check with your regulator or a solicitor for your situation before you set a deposit.
New Zealand
We have not stated a New Zealand building contract deposit rule or contract threshold, because we did not confirm one from an official building page. The only New Zealand figure we found is consumer advice: Consumer Protection says there is no legal requirement to pay a deposit when accepting a quote, and that if asked, a consumer should not pay more than 10 per cent of the total cost (Consumer Protection NZ). That is guidance to consumers and is not a building contract limit. Check the current official building guidance before you set a deposit on a New Zealand job.
How a deposit differs from a fee for early work (check with the regulator)
A deposit is part of the contract price, paid in advance. A fee for early work, under a preliminary agreement, pays for design, investigation and costing that happen before a building contract is signed.
Regulators treat the two separately, and not in the same way. NSW says preliminary work needs separate contracts, and that a preliminary contract cannot include residential building work as defined by the Home Building Act 1989; if it does and the value is over $5,000 including GST, it is treated as a residential building contract (NSW Government, guide to providing home building contracts). Queensland describes preliminary agreements as made before a building contract, and warns that fees or penalties for not proceeding may be illegal (QBCC, contracts and agreement types). Victoria says a pre-construction contract that goes beyond a soil report, into design, specifications or permits, is a building contract, and it does not recommend splitting contracts to stay under the $10,000 threshold (Consumer Affairs Victoria, pre-construction contracts).
The safe reading: do not call an early work fee a deposit, and do not use a fee to get around a deposit limit. Ask your regulator or a solicitor how your state treats it. See what goes in a preliminary agreement and charging for preliminary work.
Wording the deposit line on a quote
Keep it plain, and keep the number tied to the contract price:
- State the deposit as a percentage and as a dollar amount, and check that it is at or under your state’s limit.
- State when it falls due: on signing the contract, and after any insurance or cover your state requires is in place.
- State the progress stages that follow, and what each one is for.
- Say which document the line belongs to. A quote is not always a contract. Where the work needs a written contract, the deposit belongs in the contract.
For the rest of the quote, see how to quote a job and the quotes page.
Where the rules are changing
Victoria is the one to watch: its new domestic building contract laws take effect by 1 December 2026, and deposit limits can then be set in regulations. Rules elsewhere may change too. Build a habit: check your regulator’s contracts and deposits page each quarter, note the date, and update your standard documents the same day.
Common questions
How much deposit can a builder ask for?
The limit varies by state and sometimes by price. The regulator pages above give 10 per cent in NSW, 10 or 5 per cent in Victoria (with new laws due by 1 December 2026), generally 20, 10 or 5 per cent in Queensland, and 6.5 per cent in Western Australia. Check the current page for your state.
Is a deposit the same as a fee for design work?
No. A deposit is part of the build contract price. A fee for early work is paid under a separate agreement. Regulators treat them differently, so check yours.
Does the limit apply to small jobs?
Often yes, and the percentage can differ by job size. Each state also has a point below which a written contract is not required. Check the thresholds in the table’s sources.
What deposit can I ask for in New Zealand?
We have not stated a building contract rule. Consumer Protection NZ advises consumers not to pay more than 10 per cent if asked for a deposit, but that is consumer guidance and not a building contract limit. Check the official building guidance.