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We have contacted Consumer Affairs Victoria and they have confirmed that responsibility for the balcony is shared with the neighbour below. They advised us to get a quote from a builder, asking to separate as much as possible the costs for works on neighbour’s lot and on ours; then to have a chat with the neighbour, explain everything showing the cost and, should it not go well, to explain that we would go through VCAT.
So we got the quote and, fortunately, it was much lower than initially expected. The works are not as extensive as the first assessment indicated. The actual poles on the neighbour’s lot do not need to be replaced, they will only be painted after the work on the balcony has been completed. So we are happy to cover the costs by ourselves and not damage the relationship with the neighbour.
Thank you to everyone who has generously chipped in with their knowledge. Much appreciated!