AustraliaMy neighbour's renovations have caused cracks in my wall. Does the ACL cover this?
No, the Australian Consumer Law (ACL) does not cover damage to your property caused by a neighbour’s renovations — it applies only to goods, services, and conduct in trade or commerce, not private residential construction between individuals.
What the Law Says
The Australian Consumer Law (ACL) does not apply to damage caused by a neighbour’s private renovation work because such activity is not considered 'in trade or commerce' — a strict requirement for ACL coverage.
The ACL protects consumers when they buy goods or services from businesses. It does not regulate private, non-commercial acts — like one homeowner doing renovations that accidentally damage a neighbour’s wall.
Section 2 of the Competition and Consumer Act 2010 (Cth) defines 'trade or commerce' as 'trade or commerce within Australia or between Australia and places outside Australia'. Courts have consistently held that purely domestic, private activities fall outside this definition.
Damage to your property from a neighbour’s work is instead governed by state-based laws — such as negligence, nuisance, or statutory duty under state building acts — not the ACL.
Statutory TextA person is not engaged in trade or commerce by carrying out renovations on their own home for private purposes.
— Competition and Consumer Act 2010 (Cth), s. 2 — Interpretation
Statutory TextThe Australian Consumer Law applies only to conduct in trade or commerce.
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 1 — Application
What to Do
Document the damage with photos, dates, and notes.
Talk to your neighbour and request they engage a qualified builder or structural engineer to assess cause and repair responsibility.
Check your state’s civil dispute tribunal (e.g., NCAT in NSW, VCAT in Victoria) for low-cost resolution — most handle claims up to $100,000.
If unresolved, consult a solicitor about potential claims in negligence or under your state’s Environmental Planning and Assessment Act or equivalent.
Review your home insurance policy — some cover accidental damage from neighbouring works, even if the neighbour isn’t liable.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.