Roofing deposits, progress payments and contract terms: the legal limits in each state
Maximum deposits for re-roofing and cladding contracts in NSW, Victoria, Queensland and WA, how to set progress payments, and what a written roofing contract must include.
Most states cap the deposit a contractor can take on residential building work. As at October 2026: NSW 10% of the contract price; Victoria 5% where the contract price is $20,000 or more and 10% where it is less (Domestic Building Contracts Act 1995 s. 11); Queensland 20% for contracts of $3,300 or less, 10% for $3,301 to $19,999 and 5% for $20,000 or more; WA 6.5% for contracts under the Home Building Contracts Act ($7,500 to $500,000). After the deposit, payments should follow completed stages of work, and the contract should be written, signed and dated, list the scope, price, timing, variations process and warranties, and, where required, come with the home warranty insurance certificate before any money changes hands.
This guide is part of the roof replacement quote checklist. It is general information, not legal advice.
Deposit caps by state
| State | Deposit cap | Written contract required | Notes |
|---|---|---|---|
| NSW | 10% | Over $5,000 (small job contract $5,000–$20,000; large job contract over $20,000) | No deposit until HBC cover is in place and the certificate is given, where HBC is required |
| Victoria | 5% if price is $20,000 or more; 10% if less | Major domestic building contracts over $10,000 | Home Warranty insurance applies over $20,000 for contracts from 1 July 2026 |
| Queensland | 20% up to $3,300; 10% from $3,301 to $19,999; 5% from $20,000 | Domestic building contracts over $3,300 need written contracts with cooling-off information | Up to 20% may be allowed where off-site custom work is more than 50% of the price |
| WA | 6.5% | Home Building Contracts Act applies to $7,500–$500,000 | Up to 20% for off-site cabinetry over 50% of value |
| SA, Tas, ACT, NT | Check the regulator | Check the regulator | Rules exist in each; confirm current figures |
Figures for NSW, Victoria, Queensland and WA were checked against regulator guidance and legislation in October 2026. Victoria's Domestic Building Contracts Amendment Act 2025 is due to take effect by 1 December 2026 and allows deposit limits and progress payment stages to be set by regulations, so check Consumer Affairs Victoria or the BPC for any new caps before you sign. Run any contract price through the deposit limit check.
Worked example (illustrative)
A $18,500 metal re-sheet:
- NSW: 18,500 × 10% = $1,850 maximum deposit.
- Victoria: price is under $20,000, so 10%: 18,500 × 10% = $1,850.
- Queensland: $3,301 to $19,999 band, so 10%: $1,850.
- WA: 6.5%: $1,202.50.
If the price rises above $20,000 by variation, the Queensland cap for the contract changes band; ask the QBCC how that applies to deposits already paid.
Setting progress payments for a roof
Progress payments should match work actually done, so you are never far ahead of the contractor. A typical four-stage schedule for a re-roof:
| Stage | Trigger | Illustrative share |
|---|---|---|
| Deposit | Contract signed and insurance certificate received | Within the legal cap, e.g. 5–10% |
| Strip and prepare | Old roof removed, battens and sarking or blanket installed, roof weathertight | 30–35% |
| Roof covering | Sheets or tiles, ridges and flashings installed | 35–40% |
| Completion | Gutters, downpipes, clean-up, certificates handed over, your inspection done | Balance, e.g. 15–25% |
NSW large job contracts must include a progress payment schedule. In all states, avoid paying for materials before they are delivered to your site unless the contract gives you clear title to them.
What the contract should say
A written roofing contract should cover at least:
- Parties: your name, the contractor's legal name, ABN and licence or registration number.
- Property address.
- Scope: the items in the quote, with product names, profiles and colours, and the roof area.
- Price: fixed price, or clear provisional sums and prime cost items with how they are adjusted. GST included.
- Deposit and progress payments: amounts and triggers as above.
- Start and completion dates: and how weather delays are handled.
- Variations: must be in writing, priced and signed before the work is done.
- Unforeseen work: unit rates for things like rotten timber.
- Approvals: who obtains any permits and certificates.
- Insurance: home warranty insurance details where required; the contractor's public liability cover.
- Warranties: statutory warranties under your state's law plus any workmanship and product warranties.
- Disputes: the steps and the relevant state body. In NSW, arbitration clauses in home building contracts are void.
- Cooling-off: where it applies, such as five clear business days for NSW contracts over $20,000, or 10 business days for unsolicited agreements under the Australian Consumer Law.
Red flags in payment terms
- A deposit above the legal cap, or "materials deposit" demands that exceed it
- Payment in cash only or to a personal account that does not match the licence holder
- Large payments before any work starts
- A final payment due before you can inspect
- Pressure to pay "today" to secure a price
If you have already overpaid
If you paid more than the legal deposit, you may not be able to recover the excess through home warranty insurance; the QBCC states this explicitly for Queensland. Raise it in writing with the contractor and ask for the excess to be credited against the next stage. If the contractor stops work or disappears, contact your state regulator promptly. See roofing problems and where to get help.
Frequently asked questions
Can a roofer ask for a separate payment for materials?
The total paid before work starts generally counts towards the deposit cap. Ask the regulator if a contractor insists on a separate materials payment.
Does the cap apply to small repair jobs?
Caps apply to contracts covered by the state's home building law, which have their own value thresholds. Very small jobs may fall outside, but paying large sums upfront is still risky.
What if the contract has no progress schedule?
Ask for one before signing. Tying payments to stages protects both sides.
Can I withhold payment for defects?
Withholding is a legal step with consequences. Raise defects in writing and seek advice from your state regulator before withholding money.
Sources
- NSW Government building and renovating — Building Commission NSW contracts, deposits and cooling-off
- Consumer Affairs Victoria — domestic building contracts and deposits
- Queensland Building and Construction Commission — deposits and progress payments
- WA Government Building and Energy — Home Building Contracts Act and progress payments
- ACCC — unsolicited consumer agreements
