Contractor Walked Off the Job: How to Get Your Deposit Back

If a builder or tradie has walked off the job with your deposit, the usual order in Australia is: ask for the money back in writing with a letter of demand, then use your state or territory building regulator’s dispute service (in New South Wales, Victoria and Queensland the tribunal will not take most home building disputes until you have), then claim on home warranty insurance if the builder has become insolvent, died or disappeared, and only then apply to the tribunal or court. Which regulator, which insurance scheme and which tribunal depends on where the work was done, so the table below sets them out for every state and territory, with links to the official pages.

Whether you get the deposit back depends on what your contract says, how much work was done and whether the builder is still trading. If the work was not done, you can ask for the money you paid for it. If some work was done, you can ask for what you paid less the value of that work, plus the cost of fixing anything done badly. The steps below are the ones the regulators themselves describe.

Where to go in each state and territory

All pages checked on 27 September 2026. “Required first” means the official page says the tribunal will not accept a home building application until you have been through the regulator’s process.

Step 1: Ask for the money back in writing

The regulators expect you to have tried to sort it out with the builder first, and several ask to see proof. Building and Plumbing Commission Victoria says that before you can use its service, “you must first try to resolve the dispute with the other party yourself”. Consumer and Business Services in South Australia asks for recent letters or emails that outline the issue and how you want it resolved. Tasmania’s regulator suggests writing to the contractor and giving a reasonable time frame, such as 14 days, to respond. In Western Australia the notice of proposed complaint has to reach the builder at least 14 days before you complain to the Building Commissioner.

A letter of demand does that job and creates the paper trail the next steps rely on. It should:

• name the builder or company exactly as it appears on the contract or licence
• identify the contract or quote, the job address and the price
• set out what was paid, when, and what work was and was not done
• state the amount you are asking for and how you worked it out
• give a clear deadline to pay or return to site
• say what you will do next if nothing happens: the regulator’s dispute service, the insurance claim or the tribunal

Check your contract before you send it. Your contract may have a notice or termination clause that sets out what you must send, and how much time you must give, before you can end the contract for the builder’s default. In Queensland this matters directly: the home warranty scheme only pays on a non-completion claim if the contract ended in one of the ways it lists, and a contract you end yourself has to be validly terminated on the contractor’s default. Keep the letter factual, and keep a copy with proof it was sent.

Step 2: Use the building regulator’s dispute service

If the builder does not answer, or answers without paying, the next stop is the regulator for the state or territory where the work was done.

• New South Wales. Building Commission NSW handles complaints about incomplete home building work, and Service NSW says the complaint handling service is free. NCAT’s home building page says that before NCAT can accept your application, all home building disputes must first be referred to the regulator (NCAT’s page, last updated 2 January 2026, names NSW Fair Trading), and you must attach evidence of that process unless your matter is exempt. The exemptions NCAT lists include claims involving unlicensed contractors, claims against companies or individuals in administration, liquidation or bankruptcy, and claims where the time for lodging is due to expire within 3 months. Where there is a major building defect, a Building Commission NSW inspector may inspect the work and issue a Rectification Order listing work to be rectified or completed by a set date.
• Victoria. Since 1 July 2025 the Building and Plumbing Commission has run the free dispute resolution service previously known as Domestic Building Dispute Resolution Victoria. If conciliation does not resolve the dispute, it can issue binding dispute resolution orders or a certificate that lets you go to VCAT. VCAT lists domestic building disputes involving a home owner that have not been through this service among the things it cannot help with, unless you are applying for an injunction. Consumer Affairs Victoria notes that a dispute may not be eligible if you hired only one trade, such as a plumber or painter, and the work was not part of more extensive domestic building work.
• Queensland. The QBCC says lodging your complaint with it is “a mandatory first step”. QCAT will not accept a building dispute application without the QBCC’s letter about the outcome of its dispute resolution process.
• Western Australia. Building and Energy, within the Department of Local Government, Industry Regulation and Safety, takes complaints to the Building Commissioner about building services and home building work contracts. For contract matters such as breach of contract and termination payments, the time limit is generally three years from when the contract was entered into or the dispute arose. The Building Commissioner can make a home building work contract remedy order, and the State Administrative Tribunal can review it.
• South Australia. Consumer and Business Services takes building disputes through an online advice form. If you have tried to resolve the dispute without success, it assesses whether the matter suits conciliation. It offers voluntary conciliation, usually by phone, and compulsory conciliation conferences for serious or complex matters; a builder asked by the Commissioner to attend a compulsory conference must attend or risk being penalised.
• Tasmania. If writing to the builder does not work, mediation of residential building disputes can be arranged by the Director of Building Control, part of Consumer, Building and Occupational Services. You must first have tried to resolve the matter with the other party, and you must send them a copy of your Notice of Dispute and supporting documents.
• Australian Capital Territory. Complaints about building work go to Access Canberra. For contract concerns such as payments, the ACT planning site points to ACAT and Access Canberra Fair Trading.
• Northern Territory. The Northern Territory Government says to talk to NT Consumer Affairs before making any formal application. Where the work is covered by a fidelity fund certificate, you can apply to the Commissioner of Residential Building Disputes. For incomplete work you must apply within 90 days of when the builder stops work, and the page says the Commissioner can’t order the return of a progress payment.

Step 3: If the builder is insolvent, has died or has disappeared

A letter of demand is of little use against a company that has been wound up or a builder who cannot be found. That is the situation home warranty insurance (the name differs between states) is designed for. The builder takes out the cover, usually before taking any money, and you claim on it. Ask your builder for the certificate, or check with your state’s scheme.

Tasmania is not in this table because the Tasmanian regulator pages we checked do not describe a home warranty scheme.

Deadlines here can be short. In Queensland, a non-completion claim must be lodged with the QBCC within 3 months from the date the contract ends. In New South Wales, Building Commission NSW says that if you become aware of defective or incomplete work, you must immediately notify your HBCF insurer in writing. It also warns that a builder can only ask for a deposit of up to 10% of the contract price before work starts, and anything above that may not be recoverable under the cover. In Queensland the scheme likewise only refunds up to the maximum deposit payable by law.

Paid the deposit by card? Ask about a chargeback

If you paid by credit or debit card, your card provider may be able to reverse the transaction. Consumer Affairs Victoria describes a chargeback as being like a refund that reverses a card transaction, and lists not receiving the service at all or within the agreed timeframe, and “the business stops operating and does not supply the purchased product or service”, among the most common reasons people ask for one. It sets out the limits too:

• time limits vary from 45 to 120 days from the transaction date, depending on the card provider, so check yours and ask as soon as possible
• a chargeback may not be available if you paid by cash, money transfer, cheque, direct debit or BPAY
• it may not be available if you are eligible to lodge an insurance claim or have already been compensated

Contact your own bank or card provider to start the request, and keep every document and email that supports it.

Step 4: Apply to the tribunal or court

If the dispute service does not resolve it and the builder is still around to pay, the claim goes to the tribunal or court in the table above. You fill in the application, pay the fee and lodge it yourself. In New South Wales, NCAT can make orders about payment for home building work and about incomplete or defective home building work, and home building matters are first listed for conciliation and hearing. In Queensland, QCAT can order rectification or completion of defective or incomplete work.

Elsewhere, the table shows where a money claim against a builder or tradie goes, and in most places the claim amount decides which one. In South Australia, for example, the Magistrates Court hears minor claims up to $12,000 and general claims up to $100,000, and in the Northern Territory NTCAT hears small claims up to $25,000 and the Local Court hears claims from $25,001 to $250,000. Our QCAT vs NCAT vs VCAT guide compares the three largest tribunals.

Working out how much to ask for

Most claims come down to three figures:

1. What you paid. The deposit, every progress payment and any money you paid for materials.
2. What the work done is worth. A written assessment from another licensed builder or a building inspector is the easiest way to show this.
3. What it costs to fix work done badly. Written quotes from licensed contractors.

The starting figure is what you paid, less the value of acceptable work done, plus the cost of fixing defective work. If finishing the job with someone else costs more than the unpaid balance of the original price, the extra can also be part of your loss. That is how the Queensland scheme measures non-completion loss where work has started: the extra amount on top of the original contract price that you would need to pay a new contractor to finish.

As an illustration only: you paid a $3,000 deposit on a $30,000 job, the builder did work a second contractor values at $1,000 in writing, and fixing part of it will cost $500. The figure to ask for is $3,000 less $1,000 plus $500, which is $2,500.

Evidence to gather now

• the contract, signed quote or the emails and messages that record what was agreed
• the certificate of home warranty insurance or fidelity cover, if you were given one
• proof of every payment: bank statements, receipts, card statements
• dated photos of the site on the day work stopped and since
• every message to and from the builder, including unanswered calls
• written quotes to complete and to fix the work
• a short timeline: contract date, start date, last day on site, each attempt to contact them
• the builder’s licence number and the exact name of the business or company

What Claim Done does, and what it does not

A Letter of Demand from Claim Done costs $49. You answer plain-English questions about the job, tell us about the contract, payment records, photos and quotes, and Claim Done drafts a letter that sets out what was agreed, what was paid, what was not done, the amount you are asking for, the deadline and the next step if it is not paid. You read it, change what needs changing and approve it. It is emailed only after you approve it.

If the dispute does reach the tribunal, a Tribunal Application costs $97. Claim Done drafts it; you lodge it with the tribunal and pay the tribunal’s fee yourself. Claim Done does not lodge regulator complaints, insurance claims or tribunal forms. Claim Done is not a law firm.

Sources

Official pages, all checked on 27 September 2026. Where a page shows a last-updated or last-reviewed date, it is given in brackets.

• Building Commission NSW, Resolving building disputes with your builder or tradesperson (last updated 4 September 2026)
• Building Commission NSW, Protecting yourself in case of builder insolvency (last updated 1 September 2026)
• Service NSW, Lodge a home building complaint with the Building Commission NSW
• NCAT, Home building (last updated 2 January 2026)
• Building and Plumbing Commission, Dispute resolution services (last updated 30 June 2026)
• Building and Plumbing Commission, Domestic Building Insurance and Home Warranty (last updated 1 July 2026)
• VCAT, Before you apply: building and construction disputes
• Consumer Affairs Victoria, Building disputes, defects and delays (last updated 30 April 2024)
• Consumer Affairs Victoria, Chargeback (last updated 12 October 2023)
• QBCC, Apply directly to QCAT (last reviewed 30 August 2021)
• QBCC, Non-completion of building work (last reviewed 11 May 2025)
• QBCC, What is home warranty insurance (last reviewed 11 May 2025)
• QBCC, Home warranty for non-completion claims (last reviewed 25 October 2021)
• QCAT, Domestic and commercial building disputes (last updated 4 August 2026)
• Building and Energy, Building dispute resolution (last updated 25 June 2026)
• Building and Energy, Home indemnity insurance fact sheet (last updated 25 September 2025) and Building clients urged to check warranty insurance before paying up (last updated 12 May 2025)
• State Administrative Tribunal, Building and Construction (last updated 24 January 2024)
• Magistrates Court of Western Australia, Consumer/trader claims
• Government of South Australia, Disputes with a builder or tradesperson (page last updated 23 July 2026) and Building indemnity insurance (page last updated 19 February 2026)
• Courts Administration Authority of South Australia, Starting a civil case
• Consumer, Building and Occupational Services, Resolving residential building works issues (last updated 20 July 2026) and Mediation of residential building disputes (last updated 10 July 2025)
• TASCAT, Civil and Consumer; Magistrates Court of Tasmania, Civil disputes
• ACT Government, Disputes and complaints and Residential building work insurance
• ACAT, Civil disputes
• Northern Territory Government, Get defective or incomplete work fixed or paid out and Fidelity fund certificate
• Deposit caps (checked 11 October 2026): NSW Legislation, Home Building Act 1989, section 8; Consumer Affairs Victoria, Deposits and payments for building work (last updated 30 June 2026); QBCC, Deposits and progress payments (last reviewed 27 June 2025); Building and Energy WA, Building or renovating your home (last updated 21 September 2026); Legal Services Commission of South Australia, Law Handbook: Building Work Contracts; Tasmanian Legislation, Residential Building Work Contracts and Dispute Resolution Act 2016, section 41

Frequently asked questions

Can I get my deposit back if the builder never started work?

If no work was done, you can ask in writing for the whole deposit back. If the builder does not pay, the regulator’s dispute service and then the tribunal or court are the next steps. If the builder has become insolvent, died or disappeared, the home warranty scheme in your state may pay instead. In Queensland, where the scheme’s conditions are met and no work has started, it refunds the deposit you paid or the maximum deposit payable by law, whichever is less.

Do I have to go to the building regulator before the tribunal?

In New South Wales, Victoria and Queensland, yes, for most home building disputes. NCAT says all home building disputes must first be referred to the regulator unless exempt; VCAT will not hear a home owner’s domestic building dispute that has not been through the Building and Plumbing Commission’s dispute service, unless it is an injunction; and QCAT needs a letter from the QBCC. In Western Australia you must give the builder a notice of proposed complaint at least 14 days before complaining to the Building Commissioner.

How much deposit can a builder ask for?

Most states cap the deposit a builder can take before work starts on a home building contract. These are the caps we could confirm from official sources on 11 October 2026:

• New South Wales: 10% of the contract price (Home Building Act 1989, section 8). Building Commission NSW says any payment above that may not be recoverable under home building compensation cover.
• Victoria: 10% for contracts under $20,000, and 5% for contracts of $20,000 or more (Domestic Building Contracts Act 1995, as summarised by Consumer Affairs Victoria).
• Queensland: 20% for work valued at $3,300 or less, 10% for $3,301 to $19,999, and 5% for $20,000 or more, with up to 20% allowed in limited cases where customised off-site work or prefabrication is more than 50% of the contract price (QBCC). The home warranty scheme only refunds up to the maximum deposit payable by law.
• Western Australia: 6.5% of the contract price, for home building contracts between $7,500 and $500,000 (Home Building Contracts Act 1991, as summarised by Building and Energy).
• South Australia: $1,000 where the work is worth up to $20,000, and 5% where it is worth more than $20,000 (Building Work Contractors Regulations, as summarised in the Legal Services Commission’s Law Handbook).
• Tasmania: 10% where the contract price is below the set amount ($20,000 unless a higher amount is prescribed), 5% at or above it, and 20% where off-site work is more than 50% of the contract price (Residential Building Work Contracts and Dispute Resolution Act 2016, section 41).

We could not confirm a general statutory deposit cap for the ACT or the Northern Territory from an official source, so check your contract and ask the regulator listed in the table above. If you paid more than the cap, say so in your letter of demand.

The builder has gone broke. What now?

Check whether your job was covered by home warranty insurance or a fidelity certificate, and contact the scheme or insurer as soon as you can, because some deadlines are short. Queensland requires a non-completion claim within 3 months of the contract ending, and in New South Wales you must notify the HBCF insurer in writing immediately once you become aware of incomplete work. NCAT exempts claims against companies or individuals in administration, liquidation or bankruptcy from the requirement to go to the regulator first.

I paid the deposit by card. Can I get it reversed?

Possibly. Consumer Affairs Victoria says a chargeback can be requested when a business stops operating and does not supply what you paid for. Time limits vary from 45 to 120 days from the transaction date, and a chargeback may not be available if you paid by cash, money transfer or BPAY, or if you can make an insurance claim. Ask your card provider as soon as possible.

Does Claim Done lodge the complaint or the tribunal application for me?

No. Claim Done drafts the documents, from a $49 Letter of Demand to a $97 Tribunal Application. You approve every document before it goes anywhere, a letter is emailed only after you approve it, and you lodge any regulator complaint, insurance claim or tribunal application yourself.