The fence between you and your neighbour is falling over, and someone has to deal with it. The obvious question is who pays, and the short answer is that in most cases you both do, in equal shares.
That principle is straightforward. What trips people up is everything around it: what counts as a fence worth splitting, what happens when your neighbour wants something cheaper, and what you can actually do if they refuse to engage at all. Here is how it works before you start pricing fencing supplies.
The general principle
Dividing fences in Victoria are governed by the Fences Act 1968, with the notice forms set out in the Fences Regulations 2024. The Act establishes that adjoining owners are liable to contribute in equal proportions to a sufficient dividing fence.
Two things follow from that wording, and both matter.
- The split applies regardless of who wants the fence or whose side benefits more. You do not get a discount because the fence was your idea, and your neighbour does not avoid contributing because they were happy with the old one.
- The obligation is to a sufficient fence, not to whatever fence you would prefer. This is where most disagreements actually sit.
What counts as a “sufficient” dividing fence
The Act does not name a height or a material. Instead, it sets out factors to weigh, including the existing dividing fence if there is one, how both owners use their land, reasonable privacy concerns, any council policy on dividing fences, and the types of fences commonly used in that area.
In practice, across suburban Melbourne, that usually points to something like a 1.8 metre timber paling fence or an equivalent Colorbond fencing costs per metre. On rural or acreage properties, the answer looks completely different, and a post and wire fence may be perfectly sufficient.
So a sufficient fence in Wyndham Vale and a sufficient fence on a Mount Cottrell acreage are not the same object, and neither is wrong.
When one owner pays more
If one owner wants a fence above the sufficient standard, whether that is extra height, a more expensive material or a decorative upgrade, the person wanting the upgrade pays the difference between the sufficient fence and the better one.
A worked example makes it clearer.
| Scenario | Owner A pays | Owner B pays |
| Standard timber paling fence, both agree | Half | Half |
| A wants a premium upgrade, B is happy with standard | Half of standard, plus the full difference | Half of standard |
| Both agree to the upgrade | Half of the total | Half of the total |
| A wants the fence, B does not, standard fence required | Half | Half |
The third row is worth noting. If you both want the nicer fence, you can simply agree to share the whole cost. The Act sets the floor for liability, not a ceiling on what neighbours can agree between themselves.
The fencing notice, and why it matters
Before fencing works begin, the process under the Act runs through a fencing notice. It is a prescribed form under the Fences Regulations 2024; you can prepare it yourself, and you do not need a lawyer. It sets out what is proposed, and it is usually accompanied by at least one quote.
Your neighbour then has 30 days from the day they receive it to respond. Sending it by registered post is sensible, because the clock runs from receipt and you may later need to prove it.
| What happens | Where that leaves you |
| They agree within 30 days | You can proceed as proposed. The agreement is enforceable under the Act. |
| They respond but disagree | You cannot proceed without their agreement. Negotiate, use mediation, or apply to the Magistrates’ Court. |
| They do not respond within 30 days | You may proceed with the works, then pursue their contribution through the Magistrates’ Court. |
There is a trap in skipping the notice when things feel friendly. Without a fencing notice, a later dispute is dealt with under ordinary contract law rather than under the Fences Act, and proving what was agreed becomes considerably harder. A signed quote is better than nothing, but the notice is what gives you the Act behind you.
Urgent repairs after storm damage
Where a fence is destroyed or damaged, and the works genuinely cannot wait for the notice process, the Act allows an owner to proceed. To seek a contribution afterwards, an urgent fencing notice is given, setting out what was done, what it cost, the contribution sought and why it was urgent.
This is a narrower path than people assume. Inconvenient is not the same as urgent, and a fence that has been leaning for two years is unlikely to qualify.
Where the fence goes, and which side the rails face
Unless it is impractical, a dividing fence should be built on the common boundary. Building it off the line can create adverse possession complications later, which is a much larger problem than the fence itself.
If you are not certain where the boundary sits, a licensed surveyor is the only person authorised to define it. Guessing off a title plan or an old fence line is how these disputes start.
On the question of which side the rails and framing face, neighbours can simply agree. Where they cannot, and both properties are residential, the default is that the rails and framing go on the same side as the existing dividing fence if there is one.
Renters and building work that is not fencing work
Long-term renters can be liable to contribute in some circumstances, but only where they have been given the specific notices the Act requires. If those notices are not served, the liability does not attach.
One more distinction worth knowing. A structure built on the boundary, such as a garage wall, is generally building work under the Building Act 1993 rather than fencing work under the Fences Act. Different regime, different obligations, and one that catches people out on tight blocks.
Frequently asked questions
My neighbour refuses to pay anything. Can I still build the fence?
If they responded to your fencing notice and disagreed, you cannot proceed without their agreement or a court order. If they did not respond within 30 days, you can proceed and then seek their contribution through the Magistrates’ Court. The Dispute Settlement Centre of Victoria offers free mediation and is a far cheaper first step than court.
The old fence is fine, but I want a nicer one. Does my neighbour have to contribute?
Only up to the sufficient standard, and only if a new fence is warranted at all. If the existing fence is still sufficient, a neighbour who does not want it replaced may have no obligation to contribute. Where a replacement is justified, they contribute at the sufficient level, and you cover the upgrade difference.
Does a rental property owner or the tenant pay?
The obligation sits with the owner in the ordinary case. Long-term renters can be liable in limited circumstances, but only where the specific notices required under the Act have been given to them.
Can I put the fence slightly on my side to avoid a boundary argument?
It is not advisable. A dividing fence should sit on the common boundary unless that is impractical, and building off the line can lead to adverse possession claims down the track. Have the boundary defined by a licensed surveyor instead.
Do I need a permit as well as an agreement with my neighbour?
They are separate questions. The Fences Act deals with cost and process between neighbours. Height limits and permit requirements come from building regulations and your local council planning scheme, and a taller-than-standard fence may need approval regardless of what your neighbour agrees to.
Once you have agreement, come and see us
Prime Green Fencing supplies timber palings, posts and rails, Colorbond fencing, and all the hardware to go with it, direct from our Truganina yard. Bring us your fence line measurements, and we will work out exactly what you need, so the quote attached to your fencing notice is accurate rather than an estimate.
Call 0452 113 113 or visit 26 Apex Dr, Truganina VIC 3029. We deliver across Wyndham Vale, Werribee, Tarneit, Point Cook, Melton, Caroline Springs and the wider western suburbs.