If you or your neighbours want to build a boundary fence or repair or replace an existing fence, your activities will be governed by the Fences Act 1968. For most situations the Act does not specifically say how the cost of the fence is to be divided between the neighbours. However, the question of how much each neighbour should pay for the fence can be decided by a Magistrate, who would normally require each neighbour to pay 50% of the cost of the fence. But if one neighbour wants a more expensive fence different from the ones usually built in your neighbourhood, the person wanting the special type of fence would usually be required by a Magistrate to pay the costs over and beyond the costs of a standard fence.

If your neighbours use their land for residential purposes and want, say, a paling fence but you want something more suitable for your farming needs, say, a paling fence, you are only legally obliged to contribute half the cost of a post-and-wire fence. If your existing farm-type fence is in reasonable order but a neighbour who is not a farmer wants to put up a new fence, you do not have to pay anything at all.

There are a number of web based resources that provide useful information on fencing issues including the Fences Quick Guide: produced by and available at the website of the Victorian Parliament Law Reform Committee at www.parliament.vic.gov.au/lawreform/ and also the Department of Justice website which has a good guide to fencing rules and is especially good on how to deal with disputes about fencing. This information is available at www.justice.vic.gov.au.