Cooling-off rights for QLD residential building contracts

What the cooling-off period is

The cooling-off period is a statutory right for a Queensland homeowner to rescind a regulated residential building contract within a short window after signing without having to give a reason. It is set out in Schedule 1B of the Queensland Building and Construction Commission Act 1991 (Qld).

When the cooling-off period applies

Cooling-off applies to a regulated residential building contract: a contract for domestic building work in Queensland where the contract value exceeds the regulated threshold of $3,300 incl GST. The Queensland threshold is the lowest in Australia and catches most residential renovation work, not just new builds.

Below $3,300, statutory cooling-off does not apply. Above the threshold, the cooling-off right is implied by law into every contract regardless of what the contract itself says.

How the period runs

The cooling-off period is 5 business days. The window opens when the homeowner receives a signed copy of the contract from the builder. As in NSW and Victoria, this matters because contractors who walk away with the only signed copy leave the cooling-off window paused until they deliver the homeowner a copy.

The period excludes weekends and Queensland public holidays.

How rescission works

To rescind, the homeowner gives written notice to the builder before the cooling-off period expires. The notice does not need to use any particular form but must clearly state the homeowner is rescinding the contract under Schedule 1B. Email and post are both acceptable. Verbal rescission is not.

The contract is taken to be rescinded from the time it was signed. The builder must refund all money paid under the contract, less the cost of any reasonable out-of-pocket expenses incurred before the rescission (such as a site visit or design work commissioned before notice). The deduction must be evidenced.

Comparison to NSW and VIC

QLD: 5 business days under QBCC Act Schedule 1B for contracts over $3,300 incl GST.

NSW: 5 clear business days under HBA s 7BA for residential building contracts over $20,000 incl GST.

VIC: 5 clear business days under DBCA s 34 for major domestic building contracts over $10,000 incl GST.

The threshold is the key difference. Queensland catches small renovation contracts that escape cooling-off in the other states.

Practical implications for builders

Three habits keep a QLD builder on the right side of Schedule 1B cooling-off.

Use a current QBCC-compliant contract template. Both HIA Queensland and Master Builders Queensland standard contracts include the prescribed cooling-off provisions. Older templates may not satisfy current requirements.

Give a copy of the signed contract to the homeowner the same day it is signed and record the date and method of delivery. The cooling-off clock starts from delivery, not from signing.

Do not start work, take a deposit beyond Schedule 1B deposit caps or order materials before the cooling-off window has closed. Work performed inside the window is reimbursable only as a reasonable out-of-pocket expense if the homeowner rescinds.

Related entries

The $3,300 threshold that triggers cooling-off also triggers QBCC licensing (builder-licence-classes-qld) and home warranty insurance (qbcc-home-warranty-insurance-qld). The statutory warranties that run regardless of rescission are in statutory-warranties-qbcc-qld. The NSW equivalent is cooling-off-residential-building-contracts-nsw, the VIC equivalent is cooling-off-residential-building-contracts-vic.