The payment problem in Australian trades
92% of trade invoices are paid late. 39% are more than 30 days overdue. In 2024, there were 2,636 construction insolvencies in Australia — many driven by a single large unpaid invoice that broke the business.
The problem isn't that clients are dishonest. Most aren't. The problem is that the traditional payment model puts all the risk on the tradie: do the work first, hope you get paid second.
The 5 rules for getting paid every time
Rule 1: Never start work without a signed contract
A verbal agreement is worth nothing in court. Get everything in writing before you pick up a tool. The contract should specify: scope of work, payment schedule, what constitutes completion for each milestone, dispute resolution process.
Rule 2: Always take a deposit
A 10-20% deposit before work starts filters out time-wasters and gives you something to chase if things go wrong. Better still, use escrow so the deposit is held securely and can't be "forgotten."
Rule 3: Use milestone payments, not end-of-job invoices
The biggest payment risk is a single invoice at the end of a large job. Break every job over $5,000 into milestones. Get paid as you go. Your cashflow improves and your risk drops dramatically.
Rule 4: Document everything
Photo evidence before, during, and after every milestone. GPS-stamped. Time-stamped. If a dispute ever comes up, your evidence is the only thing that matters.
Rule 5: Use escrow for anything over $2,000
Stagex's escrow system costs 1.6% on release. That's cheap insurance for a $10,000 job. If the client can't fund the escrow upfront, that's a red flag worth knowing before you start.