The cost of constructing a dividing fence is usually shared by the property owners. In some cases, difficulties may arise. For example, one neighbour may not be able to afford to pay; a property owner can't be located; or one may want the cheapest, functional fence whereas while the other wants a more expensive, higher quality fence.
Before you and your neighbour enter into an agreement to build, repair or replace a fence, it is recommended that you communicate and negotiate about the type of fence you want and how much money each will contribute to its construction. This can avoid increased costs, delays and possible legal action. For free and practical advice on fencing issues, please visit https://www.disputes.vic.gov.au/information-and-advice/fencing
However, if you find that you and your neighbour can't agree, or you are unsure about the best way to approach your neighbour, visit The Dispute Settlement of Victoria Website for some useful resources: www.disputes.vic.gov.au/reachingagreement.
If you're still unable to find a solution, contact the Dispute Settlement Centre of Victoria on 1800 658 528. The centre can arrange free mediation; provide information about fencing notices; and as a last resort provide information about obtaining a court order to force your neighbour to contribute to the payment of the fence.
Remember, the issue of fencing between neighbours is a civil matter, and needs to be addressed by you and your neighbour.