Infrastructure Payments Details

Typically the Infrastructure Payment will be $1,000 p.a for a house and $650 p.a for an apartment (subject to 2.5% p.a. increase) and payable for 30 years.

The Encumbrance sets out the scheduled Infrastructure Payments that must be made each year over its term.

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 rates invoice.

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.  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.

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 prepayment formulation required under Clause 7 of the Encumbrance can be found here. To request an indicative prepayment figure, the Encumbrancer should contact us.

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).