Joburg extends debt write-offs to ratepayers – here’s how much you qualify for
The City of Johannesburg has extended its Debt Rehabilitation Programme from 1 March until 30 June 2022.
The relief measures were initially introduced in May 2021 and are designed to ease the financial burden on ratepayers amidst the ongoing Covid-19 pandemic. The city said that the program aims to assist financially distressed ratepayers and defaulting customers to bring their arrears municipal accounts up to date.
“Successful applicants will receive a 50% immediate debt write-off,” the city said. The balance of the debt will be divided into thirds of which one third will be written-off each year for three years – the duration of the debt rehabilitation program.
“The debt remains written off provided the customer complies with all the conditions of the program. Residential customers, small businesses, faith-based organizations or places of worship (churches, mosques, synagogues, etc) and non-profit organisations (NGOs) are all eligible to apply.”
Who qualifies?
For residential customers, the market value of the property and all properties owned by the applicants must not exceed R1.5 million.
Businesses, churches and NGOs would have to provide financial statements showing they are not generating revenue of more than R3 million per annum.
To qualify for the 50% immediate write-off, the account holder’s balance must be in arrears for more than 90 days when the application is submitted. The combined gross income of the account holder, individually or jointly, must be between R4,750 and R22,000 per month.
Where the gross monthly income is more than R22,000, only a percentage of the debt above 90 days shall be written off on the condition that the account holders settle the account in full.
The sliding scale to be used is as follows:
- Between R22,000 to R30,000 – 30% write-off of the debt above 90 days shall be offered; all interest and penalty charges shall be reversed.
- Between R30,001 to R40,000 – 20% write-off of the debt above 90 days will be offered; all interest and penalty charges shall be reversed.
- Between R40,001 to R50,000 – 10% write-off of the debt above 90 days shall be offered; all interest and penalty charges shall be reversed.
- Above R50,001 – all surcharges shall be reversed.
“Once approved, the account must be kept up to date for twelve months from the initial write-off. The city reserves the right to cancel the agreement and reinstate the original debt written-off should it be discovered that the account holder provided falsified information and documents to the city,” it said.
To apply for the program, customers can send an email to [email protected] or visit www.joburg.org.za to access application forms or apply online.
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