Dividing Fence Law in NSW: Who Pays and How to Talk to Your Neighbour
Key takeaways
Under the Dividing Fences Act 1991 (NSW), adjoining owners are liable to contribute in equal proportions to fencing work for a dividing fence of a standard not greater than a sufficient dividing fence. An owner who wants a fence above the sufficient standard is liable for the extra cost.
In most cases, you and your neighbour split the cost down the middle. That applies to building a new fence, replacing an old one, or repairing a damaged fence.
When a boundary fence needs replacing or building, most NSW property owners share the cost equally with their neighbour. The Dividing Fences Act 1991 (NSW) sets out clear rules about who pays for a dividing fence, how to notify your neighbour, and what happens if you cannot agree. This guide explains the law in plain terms and gives practical tips for talking to your neighbour before things escalate.
This is general information only, not legal advice. For specific questions about your situation, check with NSW Legal Aid, NCAT or a solicitor.
Who Pays for a Dividing Fence Under the Dividing Fences Act 1991?
Under the Dividing Fences Act 1991 (NSW), adjoining owners are liable to contribute in equal proportions to fencing work for a dividing fence of a standard not greater than a sufficient dividing fence. An owner who wants a fence above the sufficient standard is liable for the extra cost.
In most cases, you and your neighbour split the cost down the middle. That applies to building a new fence, replacing an old one, or repairing a damaged fence.
Neighbours generally must share the cost unless the fence acts as a barrier for a swimming pool, the fence was damaged by one owner, one owner wants a higher standard than a sufficient fence, one owner is a public authority, or one owner chooses to pay the full cost.
If your neighbour damaged the fence through a negligent or deliberate act, or someone on their land did so with their consent, they can be liable for up to the whole cost of restoring it.
What Is a Sufficient Dividing Fence?
A sufficient dividing fence is one that suits both properties and the neighbourhood. If you cannot agree about the type of fence, the Local Court or NCAT can decide what is sufficient. What is sufficient depends on the existing fence, how the land on each side is used, privacy, fences common in the area, council requirements, and whether the fence encloses a swimming pool.
If one owner wants a higher standard than a sufficient fence, they pay the extra cost themselves. Whether you are weighing up Colorbond fencing or timber fencing, the fence type is something to agree with your neighbour, or have decided if you cannot.
How to Talk to Your Neighbour Before Serving a Fencing Notice
The law sets out formal steps, but starting with a friendly conversation often saves time, stress and money. Here is a practical approach:
Talk face to face first. Let your neighbour know the fence needs work, explain why, and ask if they have noticed the same problem. Most disputes start because one owner acts without talking first.
Show photos and a written quote. A written quote from a fencing contractor helps with the estimated cost in a fencing notice and gives both of you a clear picture of the work and the cost. You can request a free quote from Southside Fencing & Construction by emailing your suburb, the work needed, approximate lengths, preferred material or finish, and a few photos to info@southsidefencing.com.au.
Agree in writing. If your neighbour agrees to share the cost, put it in writing: the fence type, height, materials, location on the boundary, the estimated cost, how you will split it, and when the work will start. Keep a copy.
Be patient and flexible. Your neighbour might want time to get their own quote.
If you cannot agree after talking, the Dividing Fences Act 1991 (NSW) provides a formal process.
The Fencing Notice: What It Is and How to Serve It
A fencing notice is a formal written document you serve on your neighbour when you want to share the cost of fencing work. A fencing notice must be in writing and specify the boundary line for the work, the type of fencing work proposed, and the estimated cost. The owner serving it may propose that the cost be shared in proportions other than equal, and must then state the proportions.
A fencing notice is usually given to the owner. It can only be given to a tenant where the unexpired lease term is five years or more.
An adjoining owner is not liable to contribute to fencing work carried out before a notice is served, or carried out after the notice and before the owners reach agreement or the matter is decided by the Local Court or NCAT. In other words, if you build the fence before serving a notice or before reaching agreement, your neighbour does not have to pay their share.
You must serve your neighbour a fencing notice at least one month before applying to NCAT, and attach the notice to your application.
What Happens If You Cannot Agree?
Where neighbours cannot agree on a fencing notice, they can attend mediation at a Community Justice Centre or, after a month, apply to the Local Court or NCAT.
NCAT can order what the fence is made of, how high it is, where and when it is built, and how the cost is divided. The tribunal will consider what is a sufficient dividing fence for both properties, the neighbourhood and the way each owner uses their land.
Source: NCAT, Dividing fences.
Practical Tips for a Smooth Fencing Project
Once you and your neighbour agree, a few practical steps keep the project on track:
Confirm the boundary line. Check your property plan or title, or arrange a survey if the boundary is unclear.
Choose materials together. Agree on the fence type, height, colour and style. If one of you wants an upgrade, clarify who pays the extra cost in writing.
Southside Fencing & Construction has a Sydney base in the Austral and Leppington area (NSW 2179). Contact us to confirm availability for your suburb. Our services include Colorbond, timber, PVC, aluminium and aluminium slat fencing, gates and gate repairs, retaining walls and fence repairs.
When to Get a Free Quote
A fencing notice must state the estimated cost, and a written quote helps you do that. Southside Fencing & Construction offers a free quote. Helpful details to send include your suburb, the work needed, approximate lengths, preferred material or finish, and a few photos. You can request a free quote on the contact page or by emailing info@southsidefencing.com.au.
The cost of a dividing fence depends on length, height, access, ground conditions, materials and removal of the old fence. A free quote tailored to your property gives you and your neighbour a clear starting point.
Conclusion
Understanding dividing fence law in NSW helps you approach your neighbour with confidence. In most cases, adjoining owners share the cost of a sufficient dividing fence equally. Starting with a friendly conversation, sharing a written quote and agreeing in writing often resolves things without needing a fencing notice or tribunal hearing.
For more information about your rights and obligations, visit NSW Legal Aid, NCAT or speak to a solicitor. When you are ready to move forward, request a free quote from Southside Fencing & Construction.
FAQ
Do I need to serve a fencing notice before building a dividing fence?
In most cases you should, if you want your neighbour to contribute to the cost. An adjoining owner is not liable to contribute to fencing work carried out before a notice is served, or carried out after the notice and before the owners reach agreement or the matter is decided by the Local Court or NCAT. Under the Act, a neighbour is not liable for work done before the notice or before you agree or the matter is decided.
Can I choose any fence I want if I pay the full cost myself?
You can choose to pay the full cost and build a fence of a higher standard than a sufficient dividing fence, but the fence must still comply with council requirements and any other laws. Your neighbour does not have to contribute to the extra cost. It is still a good idea to talk to your neighbour first and confirm the boundary line.
What if my neighbour refuses to pay after I serve a fencing notice?
If your neighbour does not respond or refuses to pay, you can attend mediation at a Community Justice Centre or, after at least one month from serving the notice, apply to the Local Court or NCAT. NCAT can order how the cost is divided and make other orders about the fence. Hold off starting the work until you reach agreement or the matter is decided, because your neighbour is not liable for work done before then.
Who pays if my neighbour damages the fence?
If the fence was damaged by a negligent or deliberate act of your neighbour or a person on their land with their consent, your neighbour can be liable for up to the whole cost of restoring the dividing fence. For specific advice, check with NSW Legal Aid or a solicitor.
How long do I have to wait before applying to NCAT?
You must serve your neighbour a fencing notice at least one month before applying to NCAT, and attach the notice to your application. During that month, you can also consider mediation at a Community Justice Centre.
