What the limits look like in dollars
- $12,000 bathroom renovation: maximum deposit $1,200 (10%).
- $45,000 extension: maximum deposit $2,250 (5%).
- $400,000 new home: maximum deposit $20,000 (5%).
A common trap is a quote asking for "30% to start" or "50% up front for materials" on a large job. On a $45,000 job, 30% is $13,500, six times the legal cap.
Get the insurance certificate before you pay
Consumer Affairs Victoria advises not to pay the deposit until the builder has given you a certificate of currency for the domestic building insurance covering your property. Domestic building insurance is required for work over $16,000. Excessive deposits, and work paid for before it is done, may not be covered.
Progress payments after the deposit
For a full build, Consumer Affairs Victoria lists the standard stages as base, frame, lock-up and fixing (for example 10%, 15%, 35% and 25% when all stages are in the contract). Pay each stage only once it is complete, matches the contract and has passed the building surveyor's inspection where one is required.
Check the builder, too
Builders and plumbers in Victoria are registered with the Building and Plumbing Commission (which replaced the VBA on 1 July 2025). Electricians are licensed by Energy Safe Victoria. Check the name and number on your quote match the register.
The rules are changing
The Domestic Building Contracts Amendment Bill 2025 passed the Victorian Parliament on 11 September 2025, and new contract rules are expected to start by about March 2027. We re-check this page against the official sources every three months.
Sources
- Consumer Affairs Victoria: deposits and payments
- Consumer Affairs Victoria: paying for building work checklist
- Building and Plumbing Commission: find and check a practitioner
General information only, not legal, building or financial advice. For a large or disputed contract, speak to Consumer Affairs Victoria or a lawyer.