One way to check if your neighbour is genuinely running just for family and friends is to check the ABN register.
or go to ASIC –
If you know their name, and choose advanced settings and set the state, you can see if they have an ABN. Having an ABN and a business name registered would indicate she has business indentions and not just running for family & friends.
Also check if there is any catering businesses around the area advertising services, they may give themselves away with using their residential address. Use google or even social media sites such as Facebook.
It may even be that doing for friends and family and the additional cooking and storage may be considered a business due to the volume of cooking and storage.
JimmyT is right about the insurance. If she is running a business the insurance for residence only it is going to make the insurance invalid (I know from experience). If she has an accident and burns down her kitchen and adjoining units the insurance company will void the insurance. I would also have your insurance checked regarding the garage and the trucks. (Where I work we have a client with large trucks and his insurance company put in an additional clause regarding wear and tear on the driveway for the large trucks)