Rates postponement and remission are council schemes that allow rates to be deferred or reduced in defined circumstances — such as financial hardship…
Rates postponement and remission are council schemes that allow rates to be deferred or reduced in defined circumstances — such as financial hardship, age, or particular land uses — and each council sets its own criteria.
Postponement defers payment of rates rather than cancelling them — the deferred amount generally accrues as a charge against the property and becomes payable later, often on sale or a change of ownership, sometimes with interest. Remission actually reduces or waives rates owed, typically for a defined category such as land protected for conservation, community and sporting use, or specific hardship criteria the council has adopted.
Policies vary significantly by council, but common categories include older ratepayers wanting to stay in their home without the cash burden of rising rates, land subject to a Queen Elizabeth II covenant or similar protection, Māori freehold land in specific circumstances, and general financial hardship provisions assessed case by case. Every council publishes its own rates remission and postponement policy — there is no national standard scheme.
Postponed rates generally become a registered or unregistered charge against the property, which a purchaser's lawyer needs to identify during a title search and settlement, because it can affect what's owed at settlement or what continues to accrue after purchase. This is exactly the kind of thing that surfaces in a LIM rather than a standard title search alone.
Postponed rates are not forgiven — they are a debt against the property that generally has to be settled eventually, often triggered by a sale. Buyers should specifically ask whether any rates postponement applies to a property they're purchasing, rather than assuming a clean rates account.
Last reviewed: 1 August 2026 · General information only, not tax advice.
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