Sharing the Cost of a Dividing Fence With Your Neighbour

An old side fence tends to give way slowly. A few palings lean, a post rots at the base and one windy night a panel falls into next door’s garden. At that point you and your neighbour have a shared problem. The good news is that the law in each state sets out who pays and how to start the conversation.

This post covers the general rules for dividing fences between homes in Australia. Each state has its own Act and its own process, so the details differ depending on where you live. The laws also change from time to time. Treat this as a starting point and check the current rules for your state before you spend money.

What counts as a dividing fence

A dividing fence is the fence that separates your land from your neighbour’s land. In Victoria it usually sits on the common boundary. The Victorian Government says both neighbours have the same rights and obligations even if the fence is not exactly on the line. In New South Wales a dividing fence can also be a ditch, an embankment or a hedge.

Retaining walls are a grey area. In NSW a retaining wall only counts when it supports the fence above it. If your block is sloped, the wall and fence are often planned together. Our guide to retaining wall ideas for sloped Perth gardens looks at the wall side of that job.

Who pays for a dividing fence

The basic rule is the same in most states. Neighbours share the cost of a sufficient dividing fence equally. Victoria’s guidance says the shared cost can also cover clearing land, removing the old fence and surveying the boundary. Temporary barriers can be included too.

A sufficient fence is not a fixed design. The law in Victoria does not set a height or material. Instead it looks at things like the existing fence, how the land is used and what fences are common nearby. For homes, the Victorian Government gives a 1.8 metre timber paling fence as an example.

When one neighbour wants something better

If you want a taller fence, a rendered wall or a feature screen, you generally pay the extra. In Western Australia, if you build a higher standard fence without your neighbour’s agreement, you may only claim half the cost of a sufficient fence. It is worth talking about style early, especially if the fence is part of a new garden. Our post on whether to go modern or natural for your Perth landscape design may help you decide what look suits the yard.

Damage changes the picture. In Victoria and NSW, a neighbour who damages a fence deliberately or through negligence pays for the repair. Renters in Victoria generally do not have to contribute. The owner of the property is the person to deal with.

Starting with a fencing notice

Most fence jobs begin with a chat over the side fence. If that goes well, put what you agree in writing. The NSW State Library guide suggests a written agreement cover height, materials, colour, cost and position. It should also cover removing the old fence and any extra work.

If you cannot agree, the formal step is a fencing notice. In Victoria this is a written proposal to build, repair or replace the fence. The Victorian Government recommends sending it by registered post. Your neighbour then has 30 days from receiving it to respond.

In NSW the notice must describe the boundary or proposed fence line, the type of work and the estimated cost. No set form is required. In WA the notice must be in writing, signed and delivered in person or by registered post. Each state words these rules a little differently, so read your own state’s guidance first.

Urgent repairs after a storm or fallen tree

Sometimes a fence cannot wait. A fallen tree, fire or flood can leave a yard wide open to the street or let a dog out. In Victoria you can do urgent work without notice or agreement first. To seek a contribution you then give an urgent fencing notice that sets out the work, the cost and why it was urgent.

WA has a similar rule. After flood, fire, lightning or storm damage, an adjoining owner may repair the fence straight away and recover half the cost. NSW also allows urgent work without a notice where giving one is not practical. The neighbour’s share can still be reviewed later.

When you and your neighbour disagree

Talking it through is the cheapest option and keeps the peace. In Victoria the Dispute Settlement Centre of Victoria recommends direct discussion and negotiation first. In NSW a Community Justice Centre can arrange mediation with trained mediators. A neutral person in the room often takes the heat out of a disagreement.

If that fails, each state has a formal path. In NSW, if there is no agreement after a month, either owner can apply to the Local Court or the NSW Civil and Administrative Tribunal. In Victoria only Magistrates can decide fencing matters. In WA either owner may apply to the Magistrates Court within 21 days of receiving the notice.

The Victorian Government fencing guidance and the WA Government dividing fences guide set out these steps in more detail. Other states and territories have their own Acts and tribunals. A quick search of your state government site will point you to the right body.

Fences when you are renovating or selling

Fences often come up during bigger projects. An extension built close to the boundary can mean the old fence has to come down for a while. Our tips on home addition design cover the planning side of an extension. Raise the fence with your neighbour before the builder arrives.

The same goes for a new deck or alfresco area along a side boundary. A better fence can add privacy to the space. Our post on alfresco renovations has ideas for that part of the yard. Keep any fence agreement in writing with the rest of your project paperwork.

Selling is another trigger. In NSW, fence agreements and orders do not bind future owners if one of the homes is sold. If a fence job is half agreed when a property changes hands, you may need to start again with the new owner. Finish the conversation before the sign goes up if you can.

Things the fencing laws may not cover

Some fence questions sit outside these Acts. In WA, tree debris and roots, asbestos cement fencing, pool barriers and secondary fences are not covered by the Dividing Fences Act. Fence height limits and encroachments are usually set by local councils there. In NSW, extra pool fencing costs fall on the pool owner under the Swimming Pools Act 1992.

Government land is also different. In WA the Crown does not have to contribute to a fence on land used for public purposes. The NSW Act does not apply to public authorities, although they often contribute anyway. If your back fence faces a park or reserve, contact the council or agency early.

Frequently asked questions

Do I have to pay half of my neighbour’s new fence?

In most states neighbours share the cost of a sufficient fence equally. You generally pay only your share of a basic fence that suits the area. Anything fancier is usually paid by the neighbour who wants it.

Can I just replace the fence and send my neighbour the bill?

Not usually, unless the repair is urgent. Most states expect a written fencing notice first. Skipping it can make it much harder to recover your neighbour’s share.

What if I do not know who owns the property next door?

Victoria’s guidance suggests a title search through LANDATA or a call to your council. Other states have their own land title offices. The owner, not the tenant, is usually the person who receives the notice.

Who decides if we cannot agree?

That depends on your state. In NSW it is the Local Court or NCAT, while in Victoria and WA it is the Magistrates Court. Mediation is usually the better first step.

This is general information only and not legal advice. Fencing laws differ between states and territories and change over time. For advice about your own fence, speak with a qualified lawyer or your state’s dispute service.

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