Consumer and Business Services (CBS) says that, for domestic building work in South Australia costing $20,000 or more, the maximum deposit allowed by law is 5% of the contract price. CBS also says you can be asked to pay third-party expenses in advance, such as planning approvals and building indemnity insurance. For minor domestic building work under $20,000, CBS says tradies sometimes require payment only at the end and suggests considering other quotes if asked to pay more than 10% upfront; figures checked 1 October 2026.
Does the 5% deposit limit include third-party expenses?
CBS describes advance payments for third-party expenses separately from the deposit. Those expenses include planning approvals and building indemnity insurance.
| Payment | CBS guidance |
|---|---|
| Deposit for domestic building work costing $20,000 or more | Maximum of 5% of the contract price |
| Planning approvals | May be requested in advance as a third-party expense |
| Building indemnity insurance | May be requested in advance as a third-party expense |
The cited guidance does not state a separate percentage or dollar cap for those third-party expenses. The 5% figure is therefore the stated maximum deposit, while the possibility of paying specified third-party expenses in advance is described separately.
What proof should I ask for before paying?
CBS gives two clear checks:
- The amount the tradie asks you to pay should be the same as the amount shown on the quote or contract.
- The tradie must provide proof of purchase, such as a receipt.
If the payment relates to a third-party expense, ask for the specific expense to be identified on the quote or contract and for the proof of purchase to be provided. Do not rely only on a verbal explanation of what the money is for.
What if the domestic building work is under $20,000?
CBS describes minor domestic building work under $20,000 as a smaller job and gives different practical payment advice.
| Size of job | CBS guidance | Practical response |
|---|---|---|
| $20,000 or more | Maximum deposit of 5% of the contract price; specified third-party expenses may also be payable in advance | Check the contract and request proof of purchase |
| Under $20,000 | Tradies sometimes require payment only at the end | Ask when payment will become due |
| Under $20,000 with more than 10% requested upfront | CBS says it may be worth considering other quotes | Compare itemised, fixed quotes before agreeing |
The smaller-job advice is a warning to consider other quotes, not a statement that 10% is the statutory maximum deposit. Its threshold is more than 10% upfront, while the stated deposit ceiling for larger domestic building work is 5% of the contract price.
What else should I check before handing over money?
CBS warns against excessive advance payments because money already paid could be lost if the business closes. It also reports many historical complaints involving itinerant traders taking money upfront, doing poor-quality work and becoming uncontactable when problems arise.
Before agreeing to a deposit:
- Obtain three quotes and make sure they are itemised and fixed.
- Compare the total cost, not just a low call-out fee, because the balance of the job may be higher.
- Check that three apparent businesses are not the same company or companies trading under different names.
- Note the builder’s licence number and check the CBS licensing register to confirm the licence covers the required work.
- Ask to see a digital licence or plastic licence card. CBS can also be contacted on 131 882.
This is general information, not financial or legal advice. Check the current regulator page and the Product Disclosure Statement for any relevant insurance policy before agreeing to a deposit or advance payment.
Sources
FAQ
Does a South Australian builder have to charge a 5% deposit?
No. CBS identifies 5% of the contract price as the maximum deposit allowed by law for domestic building work costing $20,000 or more, not the amount every builder must charge.
Can planning approvals or building indemnity insurance be paid in advance?
CBS says you can be asked to pay third-party expenses in advance, including planning approvals and building indemnity insurance. The cited guidance does not state a separate percentage or dollar cap for those expenses.
What should I ask for as proof of payment?
Ask for proof of purchase, such as a receipt. The amount requested should also match the amount stated in the quote or contract.
What should I do if a tradie requests more than 10% upfront on a job under $20,000?
CBS says it may be worth considering other quotes. That advice concerns minor domestic building work under $20,000 and should not be confused with the 5% maximum deposit stated for work costing $20,000 or more.