Updated October 2026 · Indicative Perth metro prices, GST included
The short version
- For home building contracts of $7,500 to $500,000 in WA, the deposit can't be more than 6.5% of the contract price.
- Contracts in that range must be in writing.
- If the work needs a building permit and is worth more than $20,000, it must be done by a registered builder (or an approved owner-builder), and home indemnity insurance applies.
- Progress payments should be tied to stages set out in your contract. Only pay for a stage once it is actually finished.
What 6.5% looks like
| Contract price | Maximum deposit |
|---|---|
| $15,000 | $975 |
| $25,000 | $1,625 |
| $40,000 | $2,600 |
| $80,000 | $5,200 |
If a builder asks for more
A request for a 20% or 30% deposit on a contract in this range is a red flag. Ask the builder to explain it and to put the payment schedule in writing. If you're unsure, check with Building and Energy (WA Government) before you pay.
Checking progress claims
Before paying a progress claim, compare how much you will have paid in total with how much of the work is actually done. Ask for compliance certificates (waterproofing, electrical, plumbing and gas) before the stage they belong to is paid. Renova Ledger does this check for you for free: enter the contract price, deposit and claim, and it flags anything that looks ahead of the work.
Other states
Deposit limits and contract rules are different in each state and territory. Check with your state's building or fair trading authority before you sign.
This is general information, not legal advice, and rules can change. Confirm current requirements with Building and Energy (WA Government) or a lawyer.
Common questions
What is the maximum deposit a builder can ask for in WA?
For home building contracts of $7,500 to $500,000, the deposit can't be more than 6.5% of the contract price under WA's Home Building Contracts Act.
Does the 6.5% cap apply to small jobs?
The cap applies to contracts in the $7,500 to $500,000 range. Smaller jobs fall outside it, so agree the payment terms in writing.
When do I need a registered builder in WA?
If the work needs a building permit and is worth more than $20,000, it must be done by a registered builder or an approved owner-builder, and home indemnity insurance applies.
When should I pay a progress claim?
Pay each stage once it is finished, as set out in your contract, and ask for any compliance certificates for that stage before paying.
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