Checked against official sources on 2 October 2026. General information, not legal advice.
The short answer
A dividing fence is joint property. Both neighbours have the same rights and obligations, and the cost of a sufficient dividing fence is split equally.
The Act doesn't set a height or material. What's 'sufficient' depends on the existing fence, how both properties are used, reasonable privacy and security, and the fences common in the area. For a residential block, the Victorian Government gives a 1.8 m timber paling fence as an example.
What the shared cost covers
It's more than the fence itself. Neighbours can also share the cost of:
- designing the fence
- clearing the land so the fence can be built
- removing the old fence
- a survey to find the boundary
- any approvals needed
- temporary barriers while the work is done
When it isn't 50/50
- You want more than a sufficient fence. If one neighbour wants it higher or in more expensive materials, they pay the difference. You can agree to share the extra if you both want it.
- One neighbour damaged it. If the fence was damaged deliberately or through negligence, that neighbour pays for repairs.
- The neighbour is a park or reserve. Land managed as a public park or reserve isn't an 'owner' under the Act, so it doesn't have to contribute. Many councils contribute anyway: check your council's shared fencing policy.
- The property is rented. Owners pay, not tenants, except on long leases (see below).
Long-term renters
Most residential and retail tenants pay nothing towards fencing. A long-term renter only pays if they receive the specific notices required under the Act, and then it depends on how long the lease has left to run:
| Lease remaining | Renter pays |
|---|---|
| Less than 5 years | Nothing |
| 5 to 10 years | Half the owner's share |
| More than 10 years | All of the owner's share |
How to start a new fence with your neighbour
- Find the owner. If it's a rental, ask the tenant for the owner's or property manager's details. Your council can help, or you can run a title search on LANDATA.
- Talk to them first. Agree on the fence, where it goes and how the cost is split. If you agree on everything, you don't legally need a notice. Many people just both sign the quote.
- Get a quote and send a Fencing Notice. The notice sets out the boundary line, the work, the contractor, the cost estimate and each neighbour's share. Registered post gives you proof of the date it arrived.
- Wait 30 days. Your neighbour has 30 days from receiving the notice to respond. If they agree, you can build as proposed.
- If they don't respond, the work can go ahead after 30 days, and you can recover their share through the Magistrates' Court.
- If they disagree, negotiate. If you still can't agree, only the Magistrates' Court can decide fencing disputes in Victoria.
A signed quote works between neighbours who agree. But without a Fencing Notice, a later dispute is handled under contract law rather than the Fences Act, which makes it harder to sort out.
Fencing notice templates (Dispute Settlement Centre of Victoria)Urgent repairs
If a dividing fence is damaged or destroyed and needs fixing straight away, you can do the work without notice or agreement. Examples are a fence brought down by a falling tree or branch, fire or flood. Not every broken fence counts as urgent.
To ask your neighbour to share the cost afterwards, send them an Urgent Fencing Notice setting out the work done, the cost and why it was urgent. Talking to them first is still the better start.
Urgent fencing notice templateWhich side do the rails go on?
If you and your neighbour agree, build it however you like. If you can't agree, the law says:
- Between two homes: rails and framing go on the same side as the existing fence.
- Between a home and commercial land: rails face into the home's side.
- Next to land with public access: rails face into the private land.
- No existing fence: rails go on the side least exposed to weather.
Where exactly is the boundary?
A dividing fence should sit on the boundary line unless that's impractical. If you're not sure where the line is, only a licensed surveyor can mark it. The survey is one of the costs neighbours can share.
Where Levers comes in
A new boundary fence often starts with one neighbour getting a quote to show the other. Jake's quotes are line-itemised, so both neighbours can see the materials, labour and removal costs before they agree on a split. That quote is what goes with a Fencing Notice.