Published
The short answer
Usually both neighbours, equally. Under s 7 of the Dividing Fences Act 1991, adjoining owners share the cost of a "sufficient dividing fence". The owner who wants the work serves a written fencing notice giving the boundary, the type of fence and its estimated cost (s 11). The neighbour isn't liable for work done before the notice, or before you agree, except for urgent repairs.
Who pays for a dividing fence in NSW?
A dividing fence is any fence separating two neighbours' land, on the boundary or on another line (s 3). Adjoining owners are liable to contribute equally to a fence "of a standard not greater than the standard for a sufficient dividing fence" (s 7(1)).
If one owner wants a better fence than that, say a taller fence, a lattice extension or hardwood where treated pine would do, that owner pays the extra (s 7(2)). The Act counts owners, so a tenant isn't liable, but a lessee with at least 5 years left on the lease is treated as an owner (s 3).
What counts as a sufficient dividing fence?
The Act doesn't set a height or material. If neighbours can't agree, the Local Court or NCAT decides, considering all the circumstances, including:
- the existing dividing fence, if there is one
- what each property is used for
- the neighbours' privacy and other concerns
- the kind of dividing fence usual in the area
- any council policy on dividing fences, and any planning rules for the land
In a newer Maitland estate where every yard has a 1.8 m steel fence, that's likely to be the usual kind; in an older street of timber paling fences, timber may be. Your own case is decided on its facts.
How to serve a fencing notice in NSW
To make a neighbour contribute, serve a notice in writing (s 11). It has to give:
- the boundary line the work is on, or the line it will be on if the boundary itself isn't practicable
- the type of fencing work
- the estimated cost of the work
- the share you propose, if it isn't half each
Legal Aid NSW publishes fencing notice templates and a fencing agreement template. Get the fence quoted before you serve the notice, so the estimate is real. Don't start the work yet: a neighbour isn't liable for work done before the notice, or after it but before you agree or a court or NCAT decides (s 11(5)).
If your neighbour doesn't agree
If you haven't agreed within 1 month of the notice being served, either owner can apply to the Local Court or the NSW Civil and Administrative Tribunal for an order on the fencing work (s 12(2)). NCAT says you must serve the fencing notice at least 1 month before applying, and attach it; it can decide what the fence is made of, how high it is, where and when it's built, and how the cost is divided.
The Act also names Community Justice Centres for mediation, but the Department of Communities and Justice says that from 1 July 2025 CJC mediation "is no longer available for disputes other than those referred by NSW Courts or involving incorporated associations". A private mediator, or a written agreement using Legal Aid's template, are the other routes before a tribunal.
Urgent repairs, storm damage and damage by a neighbour
If a dividing fence is damaged or destroyed and needs urgent work, and serving a notice first isn't practicable, either owner can have the urgent work done and recover half the cost from the other (s 9). The other owner can ask the Local Court or NCAT to review that within 1 month of the work being finished.
If one owner, or someone on their land with their consent, damaged the fence by a negligent or deliberate act, that owner can be liable for up to the whole cost of restoring it to a reasonable standard (s 8).
Where a neighbour's tree has damaged a dividing fence, or is likely to, and a tree dispute is already before the Land and Environment Court, that court can deal with the fence too (s 13A). A storm or flood with no one at fault is ordinary equal-share fencing work.
When the dividing fence is part of a pool fence
If a neighbour's pool uses the dividing fence as part of its barrier, the cost of the fencing work, to the extent it's done to meet the pool rules, falls on the pool owner, or is split between the owners if both have pools (Swimming Pools Act 1992 s 33). That rule overrides the Dividing Fences Act's equal sharing for that part of the cost.
Questions about dividing fences in NSW
Do I have to pay half of my neighbour's new fence?
Only if they served you a fencing notice first and you agreed (or a court or NCAT ordered it), and only half of a sufficient fence. If they built it before serving a notice, or wanted a better fence than needed, you aren't liable for that part.
Can my neighbour build a fence without my permission?
A neighbour can build a fence on their own side and pay for it themselves. To share the cost, they need your agreement or an order after a fencing notice.
Who chooses the colour of a shared Colorbond fence?
It's part of what neighbours agree on, along with the fence type and cost. If you can't agree within a month of the fencing notice, NCAT or the Local Court can decide what the fence is made of.
Does the Dividing Fences Act apply to rental properties?
It applies to owners. A landlord is the owner; a tenant isn't, unless they hold a lease with at least 5 years left on it when the notice is served.
Who pays to fix a fence damaged in a storm?
Usually both neighbours equally, as for any fencing work. If it needs urgent repair and a notice isn't practicable first, either owner can have it fixed and recover half (s 9).
Does a dividing fence need council approval?
Usually not, if it meets the exempt development rules for height and the other conditions. See the fence height and approval guide.
Where this information comes from
The rules and guidance on this page come from these published pages, checked on 28 October 2026.
- Dividing Fences Act 1991 (NSW) · NSW legislation, version in force from 1 July 2018 (ss 3, 4, 7–9, 11–13A)
- NCAT: dividing fences · NSW Civil and Administrative Tribunal, updated 19 June 2026
- Legal Aid NSW: fences, boundaries and retaining walls FAQs · Legal Aid NSW, updated February 2025
- Legal Aid NSW: forms for fences (fencing notice templates) · Legal Aid NSW, updated August 2026
- NSW Communities and Justice: Community Justice Centres · NSW Department of Communities and Justice, updated 25 July 2025
- Swimming Pools Act 1992 (NSW) · NSW legislation: s 33 (dividing fence costs for pool barriers)


