South Australia Plumbing Job Deposits: Is 5% the Limit on $20,000+ Work?

For South Australian domestic building work costing $20,000 or more, Consumer and Business Services (CBS) says the maximum deposit allowed by law is 5% of the contract price. For minor domestic building work under $20,000, CBS says tradespeople sometimes require payment only at the end and that a request for more than 10% upfront is a reason to consider other quotes. The 5% ceiling concerns the deposit: CBS also says third-party expenses, such as planning approvals and building indemnity insurance, may be paid in advance (figures checked 1 October 2026).

How do the two job sizes differ?

CBS draws the payment distinction according to the cost of the domestic building work:

A job costing exactly $20,000 falls within the larger-job category because CBS refers to work costing “$20,000 or more”.

The 10% figure for smaller work is not described by CBS as a legal deposit ceiling. It is a warning signal: if a tradesperson requests more than 10% upfront, consider comparing the proposal with other quotes.

Can I be asked to pay more than 5% upfront on larger work?

Not every payment made before work begins is necessarily a deposit. CBS separately says that third-party expenses may be paid in advance, including:

• planning approvals; and
• building indemnity insurance.

That is why the 5% figure should not be read as a blanket limit on every upfront payment for work costing $20,000 or more. The guidance applies 5% specifically to the deposit and separately addresses advance payment for third-party expenses.

Ask for the deposit and any third-party expense to be identified separately in the quote, contract or payment request. CBS says the amount requested should match the amount on the quote or contract.

What should I check in the quote and receipt?

Before paying, check the following:

• The quote: CBS recommends itemised, fixed quotes.
• The total cost: Check the whole quote rather than focusing on a low call-out fee, as some companies may charge more for the remaining work.
• The payment amount: The amount requested should match the quote or contract.
• Proof of purchase: CBS says the tradesperson must provide proof of purchase, such as a receipt.
• The type of advance: Make sure a deposit is not being presented as a third-party expense, and that any third-party advance relates to the expenses identified by the tradesperson.

Keeping the quote, contract and receipt together helps show what was agreed and what was paid.

How can I check the plumber and reduce payment risk?

CBS recommends seeking advice from at least three tradespeople and obtaining three quotes before deciding whom to hire. Different trading names may still represent the same company or the same ownership, so compare the actual businesses rather than relying only on their names.

Only deal with someone licensed for the type of work required. By law, builders and tradespeople must display their licence number in advertising, including on social media, websites and business cards. Note the number and check it in the CBS licensing register. A tradesperson can also provide a digital licence for viewing on a phone or tablet, or show a plastic licence card. Consumer and Business Services can also be phoned on 131 882 to check a licence.

CBS warns against excessive advance payments because money already paid may be lost if the business closes. It says it has received many reports over the years of itinerant traders taking money upfront, performing poor-quality work and then becoming uncontactable when problems arise. Even when a job seems urgent, comparing quotes before signing remains prudent.

This is general information, not financial or legal advice. Check the current regulator page before relying on the payment guidance. For any insurance question, check the relevant policy’s Product Disclosure Statement (PDS).

Sources

• Beware rogue tradespeople | Consumer and Business Services

FAQ

Is 5% the maximum I can ever pay upfront on work costing $20,000 or more?

No blanket limit applies to every upfront payment under the wording used by CBS. The 5% maximum is expressed as the legal deposit limit, while third-party expenses may separately be paid in advance.

Does more than 10% upfront on a smaller job breach a legal limit?

CBS does not describe the 10% figure as a legal ceiling. It says tradespeople sometimes require payment only at the end for minor domestic building work under $20,000, and that a request for more than 10% upfront is a reason to consider other quotes.

Must the plumber provide a receipt?

CBS says the tradesperson must provide proof of purchase, such as a receipt. The amount requested should also match the amount on the quote or contract.

What should I check before hiring a plumber?

Seek advice from at least three tradespeople, compare itemised and fixed quotes, check the total costs and verify that the person is licensed for the required work. Avoid allowing urgency or on-the-spot pressure to replace proper comparison.