Do I have to pay a 10 per cent deposit?

Not necessarily. Victoria sets 10 per cent as a ceiling and requires a notice that the amount can be negotiated within it. WA Consumer Protection says buyers typically pay no more than 10 per cent, and the other pages checked leave the figure to the contract, so the payment schedule shows the actual amount.

Is my deposit safe if the developer goes under?

It depends on how it is held and when it can be released. NSW says its trust arrangements protect deposits in an insolvency, and Queensland blocks release before settlement. WA Consumer Protection warns that unprotected deposits can be tied up. A conveyancer can confirm what your contract provides.

Can I pay with a deposit bond?

Only if the developer accepts it. In NSW the developer must agree before the contract is signed, and WA Consumer Protection says developers are under no obligation to accept a bond or a bank-issued equivalent. The bond provider's own terms are a separate document from the contract.

Can the developer spend my deposit on construction?

In NSW and Queensland the money stays in trust until settlement. In WA the developer can access it after the strata plan is registered unless the contract prevents it. For Victoria, ask your conveyancer what applies. Check the release clause.

How do deposits and deposit bonds work when buying off the plan?

Consumer Affairs Victoria says an off-the-plan deposit in Victoria cannot exceed 10 per cent of the contract price, and the NSW, Queensland and Western Australian government pages all describe deposits being held in trust, for different lengths of time. Where the states differ is when the money can be released, and whether a deposit bond or a bank-issued equivalent can stand in for cash. As at October 2026, this guide sets out what each state's official pages say.

Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.

Size, holding and release by state

State	Size	Where it is held and when it is released	Deposit bond or bank-issued equivalent
NSW	No cap stated on the NSW Government page	Held by the stakeholder (agent, solicitor or developer) in a trust or controlled money account for the contract period; cannot be released to the vendor before settlement	Only if the developer agrees before the contract is signed
Victoria	Up to 10% of the contract price, and the contract must say it is negotiable up to that limit (Consumer Affairs Victoria)	Not set out on the official pages checked; ask your conveyancer where it is held and when it is released	Not covered on the pages checked
Queensland	Not stated on the page checked	Seller cannot access it before settlement; released from trust only at settlement or when the contract ends and the seller is entitled	Not covered on the page checked
Western Australia	WA Consumer Protection says buyers typically pay no more than 10%	Held in a solicitor's, agent's or settlement agent's trust account until the strata plan is registered; a developer can access it after registration unless the contract prevents this	Some developers may accept a bond or bank-issued equivalent, and none is obliged to (WA Consumer Protection)
South Australia	When the deposit and balance are payable is listed as something to check	Not covered on the page checked	Not covered on the page checked

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A worked example

Take a townhouse at $750,000 with a deposit set at the 10 per cent maximum.

Deposit: $750,000 times 10 per cent is $75,000. The balance of $675,000 is due at settlement.
Cooling-off forfeit in NSW: 0.25 per cent of $750,000 is $1,875.
Cooling-off retained in Victoria: the greater of $100 or 0.2 per cent, which is $1,500.
Cooling-off penalty in Queensland: up to 0.25 per cent, so up to $1,875.

WA has no mandatory cooling-off period. In WA, if an agent or settlement agent holds the deposit, WA Consumer Protection says the buyer can ask in writing for an interest-bearing trust account, with the interest paid to the buyer, where the deposit is over $20,000 or settlement is more than 60 days away. A $75,000 deposit meets the first test.

The Victorian and Queensland pages describe the general cooling-off rule and do not mention off-the-plan contracts, so confirm with a conveyancer that the figures above apply to yours.

When the developer can touch the money

The release rule is where the states differ most.

NSW and Queensland. Not before settlement, apart from Queensland's case where the contract ends and the seller is entitled to the deposit. The NSW Government says this protects deposits if the developer becomes insolvent. Queensland's 2023 reforms confirmed that sellers cannot get early access to deposits paid under off-the-plan contracts.
Victoria. The pages checked do not describe where the deposit is held or when it is released. Ask your conveyancer what the Sale of Land Act 1962 and your contract provide.
Western Australia. WA Consumer Protection says a developer can access the money after the strata plan is registered unless the contract prevents it, and a 2017 blog by its Commissioner warns that a buyer's cash can be tied up, and the buyer can join a list of unsecured creditors, if the developer becomes insolvent and the money is unprotected.

A release clause tied to settlement is therefore more protective than one tied to registration, and the difference is worth checking against your contract. See also risks of buying off the plan.

Deposit bonds and bank-issued equivalents

A deposit bond, or an equivalent instrument issued by a bank, can stand in for a cash deposit only where the developer accepts it. The NSW Government says the developer must agree before the contract is signed. WA Consumer Protection says some developers may accept one in place of cash, that a deposit bond is an insurance policy, and that developers are under no obligation to accept either. The pages checked for Victoria, Queensland and South Australia do not address them.

If you use one, the contract and the bond's own terms decide what happens when settlement arrives and what you owe if you do not settle. Whether a lender counts a bond towards your own contribution is a question for your lender or broker; see finance for off the plan purchases.

If the contract ends before settlement

Victoria. Consumer Affairs Victoria says that if the plan of subdivision is not registered by the time in the contract, or the default of 18 months, the buyer has the right to end the contract and get the deposit back.
NSW. A materially prejudiced buyer who withdraws recovers the deposit, subject to the notice deadline of 14 days.
Western Australia. A 2017 WA Consumer Protection blog says a buyer who defaults could lose the deposit and may have to pay damages to the developer. It lists interest rate rises, falling values and job loss as things that can affect finance at settlement.

The deposit cap in Victoria is a maximum, not a standard. The contract must tell buyers it is negotiable within that limit.

Common questions

Do I have to pay a 10 per cent deposit?: Not necessarily. Victoria sets 10 per cent as a ceiling and requires a notice that the amount can be negotiated within it. WA Consumer Protection says buyers typically pay no more than 10 per cent, and the other pages checked leave the figure to the contract, so the payment schedule shows the actual amount.
Is my deposit safe if the developer goes under?: It depends on how it is held and when it can be released. NSW says its trust arrangements protect deposits in an insolvency, and Queensland blocks release before settlement. WA Consumer Protection warns that unprotected deposits can be tied up. A conveyancer can confirm what your contract provides.
Can I pay with a deposit bond?: Only if the developer accepts it. In NSW the developer must agree before the contract is signed, and WA Consumer Protection says developers are under no obligation to accept a bond or a bank-issued equivalent. The bond provider's own terms are a separate document from the contract.
Can the developer spend my deposit on construction?: In NSW and Queensland the money stays in trust until settlement. In WA the developer can access it after the strata plan is registered unless the contract prevents it. For Victoria, ask your conveyancer what applies. Check the release clause.
Do I earn interest on the deposit?: In WA you can request, in writing, an interest-bearing trust account with the interest paid to you, if an agent or settlement agent holds a deposit over $20,000 or settlement is more than 60 days away. The pages checked for other states do not describe an equivalent right, so ask your conveyancer whether your contract provides for interest.

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Sources

This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.