Rear setback confusion for NSW CDC Housing Code

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Hi All, see above image.

The required setback from the rear boundary in my case is 5m, as you can see the shape of the site and location of the boundary is slightly unique.

I understand the setback in two ways, firstly (the way I originally thought), was to offset the "rear" boundary by 5m, and extend it till it intersects with the 1.55m side boundary (Yellow Line).

After speaking with an ex certifier today, he is quite confident that the Blue line is the correct solution (offset the rear boundary 5m, however its influence stops perpendicular to its end point, i.e. the blue dotted lines)

I will try to engage a certifier earlier than usual, however if anyone has any insight/experience with this in the past some advice would be much appreciated.

Cheers,
DC