Paying a tradie in Victoria: deposits, progress payments and red flags

Agree the price in writing first

Before any money changes hands, get the price in writing: what's included, whether it's fixed or by the hour, and how changes (variations) will be priced and approved. For a job of $10,000 or less, Consumer Affairs Victoria suggests documenting the quote and any conversations about the quality or cost of the work.

A text or email confirming “$X for the work in your quote of 3 November, plus any extras we agree in writing” is far better than a handshake.

Deposits: the legal limit for building work

By law, a deposit for domestic building work can't be more than 10% of the price for a contract under $20,000, or 5% for a contract of $20,000 or more. A builder asking for more than that is asking for something the law doesn't allow.

For an eligible contract signed from 1 July 2026 and worth more than $20,000, the builder must also take out Home Warranty insurance. Ask when you'll receive the Notice of Cover before you sign.

Progress payments: pay for finished stages

On a bigger building job, you pay as stages are completed, not ahead of them. For a new home or major build, Consumer Affairs Victoria sets out the usual stages (base, frame, lock-up and fixing) and the share of the price usually paid at each. If you're considering a different schedule, Consumer Affairs Victoria says you must get legal advice before you sign.

Before each payment, check that the stage is actually finished. On a large job, an independent building inspector can check it for you.

Smaller jobs: pay against finished work

For a repair or a one-day job, a sensible arrangement is a small deposit for materials and the balance when the work is done and you've checked it. Consumer Affairs Victoria's advice for repairs is simple: don't pay in full up front.

Pay once the work matches what was agreed, and once you have the paperwork that goes with it: a plumbing compliance certificate (for plumbing work worth more than $750, within five days) or a Certificate of Electrical Safety (for electrical work, within 30 days for everyday jobs).

Door-to-door deals: the cooling-off rules

If a trader comes to your door uninvited and you agree to a deal worth more than $100, you have 10 business days to change your mind. (A visit you asked for, such as a tradie you invited to quote, isn't covered.) During that time they can't take any payment, can't supply the services, and can't supply goods worth more than $500.

Door-to-door traders can only call between 9 am and 6 pm on weekdays and 9 am and 5 pm on Saturdays, not on Sundays or public holidays, unless you've made an appointment. If you ask them to leave, they must, and can't contact you again about it for 30 days. Consumer Affairs Victoria also warns about fake tradies who turn up after storms and other disasters demanding cash up front.

Check the invoice

• The business name and ABN match ABN Lookup, and the quote
• GST is only charged if ABN Lookup shows the business is registered for GST
• The items match the quote, plus any variations you agreed in writing
• Certificates are attached, or the date they'll arrive is noted

How you pay

Pay in a way that leaves a record, such as a bank transfer or card, and keep the receipt. The ACCC suggests being wary of a business that wants payment by a method that's unusual for the trade. If bank details arrive by email or text, or change partway through a job, confirm them with the tradie on a phone number you already have before you pay.

Keep the paper trail

Keep every quote, message, variation, invoice, receipt and certificate together until well after the job's done. If something goes wrong, they're what you'll need.

Before you pay

• Price, inclusions and variations agreed in writing
• Deposit within the legal limit: 10% under $20,000, 5% from $20,000
• Progress payments only for finished stages
• No full payment up front
• 10 business days to cancel a door-to-door deal
• ABN, GST and certificates checked before the final payment

Comparing quotes first? Use the hiring checklist. Checking who you're paying? See how to check a tradie's licence. TradieToday doesn't currently handle payments: you agree the price and pay the tradie directly.