A restump in Ipswich valued over $20,000 carries a deposit of 5% at most

What QBCC sets as the maximum deposit

QBCC's page on deposits and progress payments ties the maximum deposit to the value of the work. For work valued at $3,300 or less it is 20%. From $3,301 to $19,999 it is 10% of the contract price, which the page calls a level 1 contract. For work valued at more than $20,000 it is 5%, a level 2 contract.

The page gives one exception. A deposit of up to 20% is allowed where substantial customised work or prefabrication is done away from the building site and makes up more than 50% of the total contract price. Its examples are made-to-measure items such as kitchen cabinetry or cladding. If a restump quote relies on that exception, ask the contractor which part of the job is built off site.

Where a restump quote sits against the line

Whether a restump is a level 1 or a level 2 contract depends on the house, so read the contract price before you read the deposit. QBCC writes its two bands as $3,301 to $19,999 and more than $20,000, which leaves a contract priced at exactly $20,000 in neither band on that page. If a quote sits on the line, ask the contractor which cap they are applying and why.

The same figure matters for the cooling-off period. QBCC's cooling-off page says the period of five business days begins the day after you receive a signed copy of the entire contract, including any plans and specifications, and, for contracts valued at $20,000 or more, a copy of the QBCC Consumer Building Guide. If the contractor is late with any of those documents, the period runs later.

If you are asked for a larger deposit

QBCC's advice is to query it with the contractor first. If they persist, you are not obliged to pay more, and the page says the request may be a red flag.

The reason to hold the line is the Queensland Home Warranty Scheme. Refunding a deposit when work has not started is one of the losses the scheme covers, and QBCC gives the maximum as $200,000 for each category of loss. But the deposit page is plain that if you pay more than the lawful deposit, you are not entitled to recover the excess in a claim for refund of deposit.

After the deposit, pay against the work

Progress payments follow the same logic. The contractor can't claim more than 50% of the contract price, including the deposit, until at least 50% of the work onsite has been completed. QBCC recommends linking each payment to a clearly defined stage you can inspect, and warns that paying more than the contract states, or paying before the due date, reduces the protection available to you under the scheme.