Who Pays For A Fence Between Two Houses In NSW?

Replacing a boundary fence is one of the most common residential trade jobs in Western Sydney, but it is also the one most likely to trigger confusion between neighbours. Whether your timber paling fence is leaning after years of storms or you are replacing an aged chainwire boundary with modern Colorbond steel, understanding the law in New South Wales keeps the project moving smoothly without unnecessary friction.
In NSW, the Dividing Fences Act 1991 says adjoining owners contribute equally to a dividing fence of a sufficient standard. If one owner wants better than sufficient, they pay the difference. Start by serving a Fencing Notice setting out the boundary, the proposed work and the estimated cost.
The Short Version
Under the Dividing Fences Act 1991 (NSW), neighbours sharing a common property boundary are equally responsible for the cost of maintaining, repairing, or replacing a dividing fence. However, equal contribution applies strictly to a fence of a "sufficient standard".
- Equal Split (50/50): Adjoining owners pay 50% each for a standard dividing fence suitable for the location.
- Upgrades at Your Expense: If you want an acoustic modular wall, a taller 2.1m specification, or a high-end decorative finish while your neighbour only requires a standard fence, you pay the extra cost above the standard rate.
- Negligent Damage: If a fence was damaged or destroyed by one owner's actions — such as backing a trailer into it, unapproved excavation, or a fallen tree from neglected land — that owner is legally required to cover the full restoration cost.
What Counts As "Sufficient"?
The Act intentionally does not prescribe a single fence height or material for every street. If a dispute reaches a court or the New South Wales Civil and Administrative Tribunal (NCAT), a referee determines what is "sufficient" by evaluating:
Legal Criteria for a Sufficient Dividing Fence:
- The existing dividing fence and its physical condition
- The land use of both adjoining properties (e.g. residential, commercial, agricultural)
- Privacy, security, and safety needs of the occupiers
- The dominant type of fencing in the immediate neighbourhood or streetscape
- Relevant local council policies and statutory planning controls
In practice across Penrith and Western Sydney, a 1.8-metre Colorbond steel fence or a 1.8-metre H3 treated pine timber paling fence is universally recognized as the standard benchmark for a sufficient dividing fence. If you choose to install a modern steel boundary, explore our to review standard panel heights and specifications.
Serving A Fencing Notice
Before starting any work on a shared boundary, you should formally notify your neighbour. A Fencing Notice is the written document required under Section 6 of the Dividing Fences Act before you can compel an adjoining owner to contribute to the cost.
Checklist: What To Include In Your Fencing Notice
- The exact boundary line where the work is to take place
- The proposed type and specification of the fence (e.g. 1.8m Colorbond in Monument)
- The estimated total cost, attaching an official itemised trade quote
- The proposed split of costs (typically 50/50 of the standard rate)
- Your contact details and a request for written agreement within 30 days
At Sydney Fence Group, we supply fully itemised, written quotes designed specifically for sharing with neighbours. We can clearly break down the base fence replacement from optional extras so both parties see the exact numbers.
NEED THIS DONE PROPERLY?
Need this done properly? Sydney Fence Group covers Penrith and all of Western Sydney, seven days a week. Call 0447 215 206 for a free on-site measure.
What If Your Neighbour Says No?
If your neighbour disagrees with the quote, refuses to pay, or fails to respond within 30 days of receiving the Fencing Notice, do not begin construction immediately. Under the Act, building without agreement or an order means you may lose the legal right to recover their half of the cost.
Step 1: Free CJC Mediation
Apply for free, independent dispute mediation through Community Justice Centres (CJC) NSW. Most neighbourhood fencing disputes are settled peacefully at this stage.
Step 2: NCAT or Local Court Order
If mediation fails or 30 days pass, either owner can apply to NCAT or the Local Court. A Member can issue a binding order specifying the fence type, cost contribution, and completion deadline.
Common Situations
Here is how the Dividing Fences Act applies in four everyday suburban scenarios:
| Scenario | Legal Responsibility & Cost Split |
|---|---|
| Neighbour wants a cheaper fence than you | You pay the difference between the cheaper standard fence quote and your upgraded fence specification. |
| Neighbour's tree or vehicle damaged the fence | They cover 100% of the restoration cost due to negligence or damage caused by their property. |
| Neighbour is a rental property | The Fencing Notice goes to the registered property owner, not the tenant. Property managers can pass it on. |
| Neighbour is overseas or uncontactable | Document your formal attempts to contact them via land registry records and apply to NCAT for an order in their absence. |
How To Make This Easy On Yourself
The easiest way to get your neighbour's signature on a Fencing Notice is to present a professional, written quote based on an actual on-site measure. An itemised document removes guesswork and keeps conversations focused strictly on the facts.
Need An Itemised Shared-Quote For Your Neighbour?
Sydney Fence Group provides free on-site measures across Penrith and Western Sydney, 7 days a week. We provide clear, itemised quotes formatted for dividing fence notices.
Working on a property in Penrith? Visit our dedicated page to view local suburb requirements.
This article is general information about NSW fencing rules, not legal advice. Rules change and every property is different — check with your council or a qualified adviser for your specific situation.
SYDNEY FENCE GROUP
PENRITH, NSWSydney Fence Group — fencing contractors based in Penrith with over 18 years experience across Western Sydney. Specialising in Colorbond, chainwire, security fencing, glass pool barriers, modular walls, timber palings and retaining wall combinations.
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