In Victoria, a deposit for domestic building work cannot be more than 10% for contracts under $20,000, or 5% for contracts of $20,000 or more. Home Warranty for eligible work from 1 July 2026 is arranged separately for each job through the Building and Plumbing Commission (BPC). Later payments follow completed building stages, not a date on your schedule.[1][3][2]
Deposit limit by contract price
Consumer Affairs Victoria says the Domestic Building Contracts Act 1995 sets the deposit cap. The exact boundary matters: a contract of exactly $20,000 is in the 5% band. The examples are our arithmetic.
| Contract price | Maximum deposit | Example |
|---|---|---|
| Under $20,000 | 10% | $15,000 x 10% = $1,500 |
| $20,000 or more | 5% | $20,000 x 5% = $1,000 |
| $20,000 or more | 5% | $80,000 x 5% = $4,000 |
Sources[1]
Home Warranty is arranged job by job
From 1 July 2026, Home Warranty applies to eligible domestic building work valued at more than $20,000 for homes and residential buildings up to 3 storeys, unless an exclusion applies. Note the different wording: the deposit band starts at $20,000 or more, while Home Warranty applies above $20,000. Major contracts from before 1 July 2026 use transitional arrangements.
Each eligible project needs its own premium and Notice of Cover, and being eligible does not mean every project is covered. The BPC says the builder pays the premium on behalf of the owner before the earlier of 10 business days after entering the major domestic building contract or the eligible work starting. Apply, pay and confirm the Notice of Cover details before work starts. Work starts when tools or materials are first used on site, other than vegetation removal.
Have the cover paperwork applicable to the project ready and explain it to the owner. Keep the contract, work value, Notice of Cover, premium payment and any variations or amended notice together.
Pay for completed stages, not scheduled dates
By law the owner pays for completed stages: base, frame, lock-up and fixing. A payment scheduler date does not make a claim due if the stage is not complete. Before each progress payment the owner is told to check that the work has passed the building surveyor's inspection, meets the contract and is complete, and that paying in advance may not be covered by Home Warranty insurance.
Use this stage check before you invoice. It is our suggestion, not a statutory form.
Job: [address] Contract type: [to lock-up / to fixing / all stages] Stage being claimed: [base / frame / lock-up / fixing] Stage complete on: [DD/MM/YYYY] Evidence: [photos, surveyor approval for frame, inspection date] Percentage for this stage in the contract: [%] of $[contract price] = $[amount] Deposit already received: $[amount] Invoice sent on: [DD/MM/YYYY]
Sources[1]
Common questions
- How much deposit can a builder ask for in Victoria?
- No more than 10% for contracts under $20,000 and no more than 5% for contracts of $20,000 or more. On an $80,000 contract that is $4,000 at most.[1]
Official sources
Checked 16 October 2026. Rules can change; use these sources to check the requirements for your job.
Related guides
- What is the maximum residential building deposit in NSW?
- How much deposit can a Queensland building contractor take?
- How do I make a Victorian security of payment claim?
Job workflows for builders.
Put it to work on the next job
Leadhand photos and notes stay on the job, so you can show the stage evidence next to the invoice you send for it.
See Leadhand job records and invoicing