Taking a deposit protects your cash flow — but ask for too much on residential work and you can breach state deposit caps. Work out a fair deposit and the balance owing.
In traqR you can take a deposit online the moment a quote is accepted, then automatically invoice the balance when the job is done.
Start free trialStart with the full quoted price including GST — the amount the customer has agreed to pay for the whole job.
A percentage (10–20% is typical) or a fixed amount that covers the materials and mobilisation you have to pay for before you start.
Residential building work has legal deposit limits in most states. Pick your state to make sure the deposit you’re asking for is allowed.
Enough to cover the materials and costs you commit to before starting, without overreaching. For most jobs a 10–20% deposit is fair and expected. For jobs with big up-front material orders, a fixed deposit matched to those costs can make more sense than a flat percentage.
Yes, for residential/domestic building work in most states. As a rough guide: NSW and VIC cap deposits at 10% on larger jobs, WA at 6.5%, and QLD around 10–20% depending on job size. These caps apply to home building contracts, not general commercial or maintenance work. Always check the current rules with your state building authority.
If you’re registered for GST, your deposit is part of the total GST-inclusive price, so GST applies to it. A deposit generally triggers a GST liability in the tax period you receive it — talk to your accountant about timing, and use our GST & BAS calculator for the numbers.
Your contract should spell this out. Generally you can keep enough to cover costs and work already done, but you can’t keep a deposit that’s out of proportion to your actual loss. A clear deposit and cancellation clause in your terms protects both sides.
This calculator is a general guide, not legal or financial advice. Deposit caps are simplified and change — always confirm the current limit with your state building regulator and set deposit terms in a written contract.
When a customer accepts a quote in traqR you can collect the deposit on the spot, then invoice the balance automatically at completion. Try it free for 14 days.