Getting paid
Deposits and progress payments for trade jobs in Australia
Should tradies take a deposit?
Yes, for jobs where you are buying materials upfront, ordering special items or committing a block of time. A deposit protects your cash flow and confirms the customer is serious. For residential building work it must stay within your state's legal cap, covered in the next section.
Are there limits on deposits?
Yes, for residential building work. NSW caps deposits at 10%, while Victoria and Queensland allow 10% under $20,000 and 5% at $20,000 or more. Queensland allows up to 20% where more than half the contract value is off-site work. Details and thresholds are below.
For residential building work, yes. Each state sets a maximum deposit for home building contracts. At the time of writing, New South Wales caps deposits at 10% of the contract price for residential building work. A written contract is required when the price is above $5,000, and for contracts above $20,000 the contractor must provide a Home Building Compensation certificate before collecting a deposit. Victoria allows 10% for contracts under $20,000 and 5% for contracts of $20,000 or more. Queensland allows 10% for contracts under $20,000 and 5% for contracts of $20,000 or more, or up to 20% where more than half the contract value is work done off site. Rules and thresholds change, so confirm with your state's building regulator.
How do progress payments work?
Progress payments split the contract price into stages paid as the work reaches set milestones. For example, a bathroom renovation might be billed at demolition and waterproofing, rough-in, tiling and completion. Agree the stages and amounts on the quote or contract before you start.
How do you invoice progress claims?
- Invoice each stage as soon as it's complete.
- Show the contract value, the amount claimed to date, this claim and the balance remaining.
- Include approved variations as separate lines.
- Attach photos of the completed stage.
Job management software that tracks claims against the quote does this automatically, so you never over- or under-claim.
What if a progress payment isn't paid?
For construction work, your state's security of payment legislation gives you a process to claim payment and apply for adjudication if it's disputed or ignored. Time limits are strict, so act quickly. See our guide to chasing unpaid invoices.
General information only, not legal advice.