Infrastructure Payments Details
Infrastructure Payments were initially set in 2018 at $1,000 per section and $650 per apartment. They inflate at 2.5% annually – in the 1 July 2020 to 30 June 2021 year, the typical annual Infrastructure Payment for a section is $1,025 and ($666.25 for an apartment).
The periodic payments to be made in each year, for sections and apartments, are as set out here.
Each section or apartment will have up to a 30 year liability for Infrastructure Payments, with the finish dates recorded in each section’s specific Encumbrance. The difference in start and finish dates is a result of the timing of different subdivisions making up the overall Milldale Development.
The Encumbrance registered against each Record of Title sets out the scheduled Infrastructure Payments that must be made each year over its term. You can obtain a copy of your Encumbrance through a search of the Land Information New Zealand records for your property. You can also request a copy of the payment schedule specific to any section by contacting us.
There are a small number of sections that will temporarily or permanently have non-standard Infrastructure Payment obligations. This will include any sections sold for commercial development, and may include ‘superlots’ that are able to be further subdivided. For each of these sections, the periodic payments are as set out in the Encumbrance registered against the Record of Title.
If you own a property that has an Encumbrance registered on the property’s Record of Title then you are legally obliged to pay the Infrastructure Payments.
The Infrastructure Payments you are obliged to pay will be included as a line item in the general Auckland Council rates invoices for your property. Infrastructure Payments can be paid using the same methods as rates. Refer to the “Ways to Pay” section on your Auckland Council rates invoice.
Consequences of default and default fees
If Infrastructure Payments are not paid when they are due, we (either through Auckland Council or directly) will contact you to remind you of your obligation to pay the overdue Infrastructure Payments. As set out in the Auckland Council rates invoice and in the Encumbrance, we may charge late payment fees on the same basis as Auckland Council charges late payment fees for overdue general rates (see here).
If you continue to fail to pay the overdue Infrastructure Payments we may take legal action to recover the overdue amounts and associated costs. The Encumbrance includes a power of sale which means that we may sell your property to recover unpaid Infrastructure Payments in the event of persistent non-payment.
Collections and remissions policies
Collections of Infrastructure Payments (including for late payments) are undertaken by Auckland Council in conjunction with its collection of general rates. In some circumstances Milldale Infrastructure or a related company may seek to collect Infrastructure Payments or arrears directly, as agreed with Auckland Council.
Milldale Infrastructure applies the same remissions policy, in respect of late payments, as Auckland Council’s remission policy for late payment of general rates. Information on Auckland Council’s remissions policy can be found here and here.
The Infrastructure Payments may be prepaid in full (see here). You cannot partially prepay Infrastructure Payments or pay them at a different rate than set out in the Encumbrance.
The scheduled Infrastructure Payments represent the full amount payable in respect of each Encumbrance over its term, unless there is a late payment or early prepayment. No credit fees or interest are payable on top of, or calculated with reference to, the Infrastructure Payments, except as set out below:
- Where Infrastructure Payments are not made by the due date, default fees are payable at the same rate as those charged by Auckland Council on late payment of Auckland Council general rates; and
- Where Infrastructure Payments are prepaid in full prior to the due date (see here), an administration fee will apply, which includes administration, registration and legal costs associated with the removal of the Encumbrance. This fee is currently $500 plus GST, if any.