Short answer: in NSW, you and your neighbour normally split the cost of a dividing fence equally (50/50) — as long as it’s a ‘sufficient’ fence for the area. Here’s how it works, what to do if your neighbour won’t chip in, and how to get it built without the drama.
The short answer: you split it 50/50
The Dividing Fences Act 1991 (NSW) sets the rule: adjoining owners contribute equally to a dividing fence of a sufficient standard. That applies to a new fence and to repairs or replacement of an old one. One owner can’t simply decide to pay less — the equal-share principle is the default.
What counts as a “sufficient” dividing fence?
A ‘sufficient’ fence is one that’s adequate for the local area and how the land is used — not the flashiest or most expensive option. Around Wollongong and the Illawarra, that’s typically a 1.8 metre timber paling or Colorbond fence on a standard residential block. If a plain, sufficient fence does the job, that’s the standard both neighbours share the cost of.
What if you want a better fence than your neighbour?
You’re free to build something taller, more decorative, or in a premium material — but you pay the difference. Your neighbour only has to contribute up to half the cost of a sufficient fence; anything above that standard is on you. This is the most common sticking point, so agree on the standard in writing before any work starts.
The Fencing Notice: doing it properly
If a friendly chat doesn’t settle it, the formal first step is a Fencing Notice — a written notice to your neighbour setting out the proposed work and the cost split. In NSW you must serve it at least one month before applying to NCAT, and your neighbour has one month to respond. Keep it factual and keep a copy.
What if your neighbour won’t agree or won’t pay?
You have a clear, low-cost path:
- Talk first — most fence disputes are solved over the back fence.
- Serve a Fencing Notice if a conversation doesn’t work.
- Free mediation through a Community Justice Centre.
- NCAT or the Local Court for a binding decision as a last resort — see NCAT’s dividing fences guide and Legal Aid NSW.
Do you need council approval?
A standard boundary dividing fence under the height limit usually doesn’t need council approval. You may need it for higher fences, corner blocks, pool barriers, or in heritage areas — so always check with your local council before you start.
Building a dividing fence in the Illawarra
Once you and your neighbour have agreed, the easy part is getting it built well. We install Colorbond, timber and aluminium dividing fences across Wollongong and the Illawarra — fully insured, with a fixed price agreed before we start. See our full fencing services, or jump straight to fencing in Wollongong or Shellharbour. Call 0493 589 355 for a free, no-obligation quote.
Frequently Asked Questions
Who pays for a dividing fence in NSW?
Under the Dividing Fences Act 1991 (NSW), adjoining neighbours generally contribute equally — a 50/50 split — to the cost of a ‘sufficient’ dividing fence. Neither owner can change that split on their own.
What is a ‘sufficient’ dividing fence?
A sufficient fence is one that’s adequate for the area and how the land is used — not the most expensive option available. For a standard residential block in the Illawarra that’s usually a 1.8m timber paling or Colorbond fence.
What if I want a better fence than my neighbour will pay for?
You can build a higher fence or use better materials, but you pay the extra cost above the ‘sufficient’ standard. Your neighbour only has to contribute up to half the cost of a sufficient fence.
What is a Fencing Notice?
A Fencing Notice is a formal written notice you give your neighbour proposing the fencing work and how the cost will be shared. In NSW you must serve it at least one month before you can apply to NCAT, and your neighbour has one month to respond.
What if my neighbour won’t agree or won’t pay?
Start with a conversation, then a Fencing Notice. If you still can’t agree, free mediation is available through a Community Justice Centre, and as a last resort you can apply to NCAT or the Local Court for a binding decision.
Do I need council approval for a dividing fence?
A standard boundary dividing fence under the height limit usually doesn’t need council approval, but it can for higher fences, corner blocks, pool barriers or heritage areas. Always check with your local council first.
This article is general information only and is not legal advice. Dividing-fence rules can change and every situation is different — check the current Dividing Fences Act 1991 (NSW), NSW Fair Trading, your local council, or get your own legal advice before acting.