Who Pays for a Dividing Fence in NSW?
Updated: Oct 6
If you are replacing a fence you share with a neighbour, the first question is almost always the same: who pays for it? In New South Wales the starting point is that both owners contribute equally to a dividing fence. But that equal split only applies up to a certain standard of fence, and only when the correct process has been followed. Get the order of operations wrong and you can end up wearing the full cost of a fence you assumed you were splitting.
The short answer
Under the Dividing Fences Act 1991 (NSW), adjoining owners are each liable for half the cost of a sufficient dividing fence between their properties. If you want something taller, more decorative or more expensive than sufficient, you can still have it built, you simply cover the difference yourself. And if you go ahead without giving your neighbour written notice first, recovering their share afterwards becomes a great deal harder.
What counts as a “sufficient dividing fence”?
The Act deliberately avoids locking in one definition, because a fence that is perfectly adequate between two suburban backyards would be useless on a rural block. Instead, what is sufficient is judged against the circumstances of the two properties. The things that usually matter are:
the kind of fence commonly found in that street or neighbourhood
what the fence is actually for, such as separating two residential yards, providing privacy, or containing animals
the type and condition of any fence that was there before
any council planning controls or other rules that apply to the site
Across most of Sydney, a sufficient dividing fence between two residential blocks is a standard timber paling or Colorbond fence at the usual residential height. In a heritage conservation area, or on a street where front fencing follows a consistent character, “usual for the area” can mean something quite different, which is one of several reasons it is worth checking whether your fence needs council approval before anyone orders materials.
The fencing notice: the step most people skip
Before work starts, the owner who wants the fencing done should give the other owner a written fencing notice. It sets out the work proposed, who you suggest should carry it out, and the estimated cost, and it gives your neighbour a period, generally 30 days, to agree or to propose something different. NSW Fair Trading publishes a standard form for this, and it is worth using rather than relying on a text message or a conversation over the fence.
Two practical reasons it matters. First, evidence: if the cost is ever disputed, a written notice and an itemised quote are what a tribunal will want to see. Second, timing: the notice forces the cost conversation to happen before anyone pays a deposit, rather than after the old fence is already in a skip.
What if your neighbour will not respond, or will not pay?
If the notice period passes without agreement, either owner can apply to the NSW Civil and Administrative Tribunal (NCAT) for an order about what fencing work should be done and how the cost should be shared. Free general information about the process is available from NSW Fair Trading, LawAccess NSW and NCAT.
To be clear about our own role here: we are fencing contractors, not lawyers. What follows is general information drawn from doing this work across Sydney for years, not legal advice. For your own situation, go to those official sources or talk to a solicitor.
When the 50/50 rule does not apply
Plenty of jobs are not a clean even split. The most common exceptions we run into:
You want an upgrade. If the sufficient fence is a standard paling fence and you want a taller lapped and capped fence in a premium timber, your neighbour's contribution is generally still measured against the sufficient option. The difference is yours.
One owner caused the damage. If a fence was destroyed by something one owner did, that owner may carry more of the cost, or all of it.
The property is tenanted. Liability for a dividing fence sits with the owner, not the tenant. Notices should go to the owner or their managing agent.
It is really a retaining wall. A structure holding back soil is a different thing to a dividing fence, with different rules and genuine engineering considerations.
It is a pool barrier. Pool fencing is a separate legal requirement under pool safety law and sits with the owner of the pool, not with the neighbour.
Those last two come up constantly on sloping Sydney blocks. If there is soil to hold back as well as a boundary to fence, read our guide to retaining walls in Sydney, and if there is a pool involved, see pool fencing requirements before you treat the job as an ordinary dividing fence.
How this actually plays out on a Sydney job
The usual sequence looks like this. A fence blows over in a southerly, or the posts finally give way, and one neighbour calls us out for a quote. We price the standard replacement, itemised, including removal and disposal of the old fence, which is a real cost and belongs in the quote rather than as a surprise later. That written quote is then what the owner attaches to their fencing notice. Because it is itemised, the neighbour can see at a glance what is the standard replacement and what is an optional upgrade, and the conversation next door gets a lot shorter. You can see the range of fencing services we provide across Sydney for a sense of what a standard replacement usually involves.
Where the two owners want different things, one wanting Colorbond and the other timber palings, the practical answer is usually to split the cost of the sufficient option and have whoever wants the other material cover the gap. If you are not sure the fence is genuinely due for replacement at all, our guide on when to replace a fence runs through the signs worth checking, and the Sydney fencing cost guide explains what drives the price either way.
One more practical point: replacing a boundary fence almost always needs access from both sides, and sometimes means moving a shed, a trampoline or a garden bed. Agreeing that with your neighbour before the day, rather than on the morning, saves everyone a difficult conversation. If the fence in question is a shared side or rear boundary, our boundary fencing in Sydney page explains what that work involves.
Before you call anyone
Confirm the boundary. An existing fence is not proof of where the boundary runs. If there is any doubt, a registered surveyor is far cheaper than moving a fence twice.
Photograph the existing fence, from both sides, before anything is touched.
Get a written, itemised quote rather than a lump sum, so the standard work and any upgrades are visible separately.
Put the fencing notice in writing, using the NSW Fair Trading form.
Check whether the fence you have in mind needs council approval, particularly for front fences or anything unusually tall.
Frequently asked questions
Can I just build the fence and send my neighbour the bill?
You can build it, but recovering half afterwards is much harder without a fencing notice and either an agreement or a tribunal order behind you. Notice first, work second, is the order that protects you.
Does my neighbour have to contribute if they did not want the fence replaced?
If the existing fence is no longer sufficient, the obligation to contribute to a sufficient replacement generally still exists, even where one owner is reluctant. If you cannot reach agreement, NCAT is the body that decides what work is needed and how the cost is shared.
Who pays if I am renting?
The owner. Dividing fence contributions are an owner's liability, not a tenant's. If you are renting and the fence needs attention, pass it to the landlord or managing agent rather than dealing with the neighbour yourself.
What if the other side is a council reserve or a park?
Different arrangements can apply where the adjoining land is held by a council or another public authority. Contact the relevant council or land manager before assuming the usual even split applies.
Do we both have to use the same fencing contractor?
No, but one fence built by one contractor is far simpler than trying to split a single structure between two. The fencing notice is the place to propose who does the work, and your neighbour can agree or suggest an alternative.
Getting a quote you can hand straight to your neighbour
We work right across the Sutherland Shire, St George, the Inner West, the Eastern Suburbs, Canterbury-Bankstown and the rest of our Sydney service areas. If you need a clear, itemised fencing quote that separates the standard replacement from any upgrades, so the conversation next door is a short one, get in touch for a fencing quote. Also worth reading: how long fence replacement takes in Sydney.
Also worth reading: Replacing a Fence Without Upsetting Your Neighbour
Comments