Should a tradie take a deposit before starting work?

For small, quick jobs a deposit is usually unnecessary. For larger jobs, or any work needing materials bought up front, a deposit is standard and sensible. It covers your material costs, secures the booking, and shows the customer is serious. The bigger the job and the more materials involved, the more a deposit makes sense.

How much deposit should a tradie ask for?

A common range is 10 to 30 percent of the total, or enough to cover the materials you need to buy before starting. For jobs with large special orders, asking the customer to cover the materials cost directly is reasonable. Whatever you choose, state it on the quote so it is agreed before any work begins.

Is it legal for a tradie to ask for a deposit?

Yes, deposits are a normal and legal part of trade work in Australia, as long as the amount is fair and agreed in advance. Some states have consumer rules limiting excessive deposits on certain home building contracts, so for large building jobs check your state's requirements. For everyday trade work, a clear, reasonable deposit on the quote is fine.

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Getting Paid2 min read

Should you take a deposit before starting a job?

By The Mytradelink TeamLast updated 12 June 2026

For small, quick jobs you usually do not need a deposit. For larger jobs, or anything that needs materials bought up front, a deposit is standard and smart. It covers your material outlay, secures the booking, and proves the customer is serious. The rule of thumb: the bigger the job and the more materials involved, the more a deposit makes sense.

A deposit is not being difficult. It is basic cash-flow protection, and good customers expect it on real jobs.

When to take a deposit

Ask for one when:

The job needs materials bought before you start
It is a larger job that ties up days of your time
The customer is new and unproven to you
There are special-order items you cannot return

Skip it when the job is small, fast, and uses materials you already carry. Asking for a deposit to change a tap reads as fussy.

How much to ask for

Common approaches:

10 to 30 percent of the total as a booking deposit
The full materials cost up front, especially for special orders, with labour paid on completion
Staged payments on big jobs: a deposit, a progress payment partway, and the balance at the end

Match the deposit to your risk. If you are about to spend $2,000 on parts for a new customer, covering that cost up front is entirely reasonable.

How to take one without scaring customers off

Put it on the quote. State the deposit, the amount, and what it covers, before any work is agreed. A surprise deposit request after acceptance feels like a catch. A quote template makes it part of the standard layout.
Explain it plainly. "I take a 20 percent deposit to cover materials and lock in your spot." Customers accept this instantly when it is framed as normal.
Make paying easy. Give a clear bank transfer line or a card payment option. Friction loses deposits.
Receipt it. Confirm the deposit in writing and show it on the final invoice, so the balance is obvious. A tax invoice generator handles the deduction cleanly.

Deposits and cash flow

A deposit is one half of protecting your money; clear terms and prompt invoicing are the other. Together they mean you are rarely out of pocket and rarely chasing payment. If you do end up chasing, see what to do when a customer won't pay.

This is general information, not legal advice. Some states cap deposits on certain home building contracts. For large building work, check your state's consumer building rules or get advice.

Put it into practice: free Tax Invoice GeneratorFree, no sign-up, done in a minute.

Common questions

Should a tradie take a deposit before starting work?: For small, quick jobs a deposit is usually unnecessary. For larger jobs, or any work needing materials bought up front, a deposit is standard and sensible. It covers your material costs, secures the booking, and shows the customer is serious. The bigger the job and the more materials involved, the more a deposit makes sense.
How much deposit should a tradie ask for?: A common range is 10 to 30 percent of the total, or enough to cover the materials you need to buy before starting. For jobs with large special orders, asking the customer to cover the materials cost directly is reasonable. Whatever you choose, state it on the quote so it is agreed before any work begins.
Is it legal for a tradie to ask for a deposit?: Yes, deposits are a normal and legal part of trade work in Australia, as long as the amount is fair and agreed in advance. Some states have consumer rules limiting excessive deposits on certain home building contracts, so for large building jobs check your state's requirements. For everyday trade work, a clear, reasonable deposit on the quote is fine.

Keep reading

Getting Paid · 2 min readWhat to do when a customer won't pay Licensing · 2 min readDo you need a licence to be a handyman in Australia?Pricing · 3 min readHow much should a plumber charge per hour in Australia?

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