Who pays for a dividing fence in Victoria?

A plain-English guide to the Fences Act 1968 — sharing the cost of a boundary fence with your neighbour.

Expanse Fencing › Guides › Who pays for a dividing fence

If the fence between you and your neighbour is falling down, the good news is you usually don't have to foot the whole bill. In Victoria, the Fences Act 1968 sets out how neighbours share the cost of a dividing fence (the fence on a common boundary). Here's how it works in practice.

The short answer

Adjoining owners are generally each liable for half the cost of a "sufficient dividing fence" — a fence that's reasonable for how the properties are used. If you want something fancier than "sufficient", you typically pay the difference.

SituationWho usually pays
A standard, sufficient dividing fenceSplit 50/50 between the two owners
One owner wants a higher-spec fenceThat owner pays the extra above "sufficient"
Damage caused by one owner (or their tree, vehicle, etc.)The owner who caused the damage
Fence next to council land / a road reserveDifferent rules may apply — check with council

Step 1 — Talk to your neighbour first

Most fence projects are sorted with a friendly conversation. Agree on the type of fence, roughly when, and a 50/50 split. Getting a clear estimate up front makes this conversation much easier.

Step 2 — Give a Fencing Notice

If you want it formal (or your neighbour is hard to pin down), the Act lets you serve a Fencing Notice — a written notice proposing the fencing works: the type of fence, the estimated cost, and how you propose to share it. This officially starts the process. If you can't agree within 30 days, either owner can apply to the Magistrates' Court.

Step 3 — If you can't agree

Try the free Dispute Settlement Centre of Victoria (DSCV) for mediation first — it resolves most fence disagreements without lawyers. If that doesn't work, either owner can apply to the Magistrates' Court of Victoria, which can make orders about the fence and the cost split.

⚠️ Important: if you build or replace a shared fence without giving a Fencing Notice or reaching agreement, you may end up paying the full cost yourself. Do the paperwork before the work starts.

How much is "half"?

You can't split a cost you don't know yet. The simplest way to start the conversation is to get an accurate estimate for the fence line — then you and your neighbour each know exactly what a fair 50/50 share looks like.

Get an instant estimate for your shared fence

Draw your boundary on the map and get an accurate estimate in about 2 minutes — handy to show your neighbour when you propose splitting the cost. The formal price is confirmed at a free on-site measure.

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