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It can be challenging to have a happy relationship with your neighbour if they’re worried that you’re filming them. However, a person acting as an individual (not in a business or organisation) is not usually covered by the Privacy Act unless what they’re doing is ‘highly offensive’ to a reasonable person.
In the case of CCTV at home, highly offensive could be filming into bathrooms, or filming children at play in their backyard. We would not consider images highly offensive if they could be seen from the street.
For example, if you are sunbathing semi-naked in your own back yard surrounded by a three-metre-high fence, you would expect not to be spied on. It is also against the law to peer into people’s homes and record them.
While the Privacy Act might not apply to home CCTV cameras, other laws might. For example, the Crimes Act doesn’t allow intimate recording of people without their consent or knowledge and bans publication of these recordings. We would recommend raising your concerns with Police.