A deposit policy exists for one reason: so that when something goes wrong six weeks before a wedding, nobody is arguing about what was agreed. It is not a legal shield so much as a shared memory. The venues that have a clear one spend far less time chasing money and almost no time in uncomfortable phone calls.
Below is what a policy needs to cover, why each clause earns its place, and a template at the end you can adapt. Have your own lawyer look over the final version — this is a starting point, not legal advice.
The nine things a policy has to answer
1. How much, and is it a percentage or a fixed amount?
A percentage (commonly 20–30% of the estimated total) scales with the size of the function, which is usually fairer for both sides. A fixed amount is simpler to explain and easier to collect for smaller hires. Pick one and apply it consistently; ad-hoc deposits are how venues end up under-secured on exactly the bookings that hurt most to lose.
2. When is it due?
Tie it to the hold, not the event. "Within seven days of your tentative hold" gives the customer a clear deadline and gives you a date on which the room goes back on sale. Tying it to the event date instead ("due 30 days prior") leaves a booking made ten months out completely unsecured for nine of them.
3. What does it actually secure?
Say it plainly: the deposit secures the date, the room and the agreed package. This matters because it sets up the next clause — what happens when the customer wants to change one of those things.
4. Is it refundable, and on what timeline?
This is the clause that causes every dispute, so it needs tiers rather than a single yes or no. A common structure:
- More than 90 days out — deposit refundable, minus an administration fee.
- 30 to 90 days — deposit retained.
- Under 30 days — deposit retained and the balance may become payable.
Whatever tiers you choose, the reasoning should be defensible: the closer to the date, the less chance you have of reselling it. Say that in the policy. Customers accept the rule far more readily when the logic is visible.
5. Can the booking be transferred instead of cancelled?
Offering a one-off transfer to another date within twelve months is good business. It converts a refund argument into a retained booking, and it costs you nothing if the new date would otherwise have gone unsold. Cap it at one transfer so it doesn't become an open-ended option on your calendar.
6. When is the balance due?
Usually 7 to 14 days before the event, and it should be stated in the same breath as the deposit so the customer sees the whole payment shape up front. If your final numbers are confirmed at the same point, say so — it explains why the date is what it is.
7. How do final numbers interact with the money?
Set a date after which the guest count can go up but not down. Without it you are catering and staffing for a number that keeps sliding. This clause is what makes the balance figure meaningful.
8. Is there a damage or security bond?
If you take one, keep it separate from the deposit — different purpose, different timeline, different refund conditions. State the amount, when it's taken, what it covers, and how long after the event it's returned. "Refunded within 7 business days subject to inspection" is clear; "in due course" is not.
9. What are the accepted payment methods, and who pays the fees?
Bank transfer, card, in person. If card payments carry a surcharge, disclose it in the policy rather than surprising people on the invoice. Note that surcharging rules apply in Australia — you may generally only pass on your actual cost of acceptance. Confirm your position with your payment provider.
A template you can adapt
Replace the bracketed values with your own. Keep it on one page — a deposit policy nobody reads protects nobody.
[Venue name] — function deposit and payment policy
Securing your booking. A deposit of [30%] of the estimated total is required to confirm your booking. Until the deposit is received your date is held on a tentative basis only and may be released to another enquiry.
Deposit due date. The deposit is payable within [7] days of your tentative hold being placed. Holds not converted within this period are released automatically.
What the deposit secures. Your deposit secures the date, the space and the package described in your quotation. Changes to any of these are subject to availability and may alter the total.
Balance. The remaining balance is due [14] days before your event, at the same time as final guest numbers are confirmed.
Final numbers. Guest numbers may be increased after this date subject to availability, but charges will not be reduced below the confirmed number.
Cancellation. More than [90] days before the event, your deposit is refunded less a [$X] administration fee. Between [30] and [90] days, the deposit is retained. Within [30] days, the deposit is retained and the balance may remain payable. These tiers reflect how likely we are to re-book the date at short notice.
Transfers. You may transfer your booking to another available date within [12] months on one occasion, subject to availability. Your deposit moves with the booking.
Damage bond. A refundable bond of [$X] is payable with the balance and returned within [7] business days of the event, subject to inspection.
Payment methods. We accept [bank transfer and card]. Card payments attract a surcharge of [X%], reflecting our cost of acceptance.
Prices and GST. All amounts are quoted in Australian dollars and [include GST where applicable].
Having a policy is not the same as collecting
The policy sets the rules. What actually gets the money in is the process around it, and this is where most venues quietly lose weeks of admin:
- Send the invoice with the hold, not after it. The moment a date is pencilled is when the customer is most motivated. A deposit invoice attached to the confirmation email converts far better than one sent five days later.
- Automate the reminder. A single reminder two days before the deposit deadline recovers a meaningful share of bookings that would otherwise go quiet — and nobody has to remember to send it.
- Make expiry real. If holds never actually lapse, the deadline in your policy is decorative and customers learn that quickly.
- Keep the money on the booking. Deposit, balance and bond should be visible on the same record as the event, so anyone can answer "have they paid?" without opening the accounting system.
Two related pieces: the balance date should match your final-numbers cut-off, and the amount you are securing depends on how the package is priced in the first place.
ezybooked generates the deposit invoice straight from the booking with your charges and GST already applied, tracks the balance against the same record, and sends the reminders on a schedule. You can see how that works on the features page.
The short version
If you only fix one clause
Tie the deposit deadline to the hold, not the event date — and make the hold actually expire. That one change stops long-lead bookings sitting unsecured for months.