A residential building contract has to meet your state's home-building law, not just the ACL — and the rules on deposit caps, cooling-off and progress payments differ in ways that bite. Here is the state-by-state run-down. Pair it with Residential Contracts & the ACL for the federal overlay.
New South Wales — Home Building Act 1989
Written and signed; price or calc method, scope, dates plus an EOT mechanism, progress stages, the statutory warranties, a cooling-off statement and information documents.
- Deposit cap: 10% (taking more is an offence).
- Cooling-off: 5 clear business days above the threshold (historically over $20,000). On withdrawal the builder keeps reasonable out-of-pocket costs and refunds the rest.
Victoria — Domestic Building Contracts Act 1995
Written, signed; scope, plans/specs, price or calc method, dates; statutory warranties. No "rise and fall" clause unless the price is over $500,000, and no compulsory arbitration.
- Deposit cap: 10% (under $20,000) / 5% ($20,000+).
- Cooling-off: 5 business days on major contracts (with exceptions, e.g. the owner took independent legal advice). The builder keeps reasonable costs; the owner tops up if the deposit is short.
Queensland — QBCC Act Schedule 1B
Written, signed for domestic work over the threshold; scope, price or calc, start and practical-completion dates, the statutory warranties, and the QBCC Consumer Building Guide (level 2 contracts).
- Deposit caps: 20% (up to $3,300) / 10% ($3,301–$19,999) / 5% ($20,000+).
- Cooling-off: 5 business days after you receive the signed contract (and guide); if the builder did not provide them, the right extends. On withdrawal (s38) the builder keeps reasonable out-of-pocket costs + $100 and refunds the rest (or the owner pays the difference).
Western Australia — Home Building Contracts Act 1991
Written, signed; essential terms; deposit and progress payments regulated; a "Notice for the Home Owner" and insurance details.
- No statutory cooling-off — this is the key WA exception. Any cooling-off must be written into the contract; otherwise there is no change-of-mind withdrawal, and cancellation falls under general law (breach/frustration).
South Australia — Building Work Contractors Act 1995
Written; parties, scope, price or calc, completion, the Form 1 rights-and-obligations notice; statutory warranties.
- Deposit cap: $1,000 (up to $20,000) or 5% (over $20,000) — note, NOT 10%.
- Cooling-off: 5 clear business days (extending up to completion if the contractor has not met the formal/insurance requirements).
The pattern
The states with statutory cooling-off — NSW, VIC, QLD, SA — pair it with a deposit cap so owners are not exposed to big upfront payments, while the builder still recovers reasonable out-of-pocket costs (QLD adds a flat +$100) and refunds the surplus. WA is the outlier with no statutory cooling-off. Quick reference on the Deposit Caps & Home Warranty card.
Common mistakes
- Taking a 10% deposit in SA — the cap is $1,000 or 5%.
- Assuming WA has cooling-off — it does not unless your contract says so.
- Front-loading progress payments past the stage caps.
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