you can't tell him where to build if he complies with council guidelines, all stipulated within the planning laws which can be downloaded for free if you want to make sure council are doing the right thing. you may be able to object but it'll fall on deaf ears if within the rules. you could talk to your neighbour directly and make a case that it will benefit you both to be further apart. alternative is to move your house, it's on stilts i assume, you'll need council approval to do that though and a few $
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Neighbour is planning to build a new home, page-24
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