Debt write-offs for Joburg ratepayers: Here’s who will qualify

The City of Johannesburg recently approved its debt rehabilitation programme which aims to assist defaulting customers to bring their outstanding municipal accounts up to date.

Joburg is giving debt write-offs to ratepayers

Qualifying customers will receive a 50% debt write-off, with a further write–off on the outstanding debt over a three-year period – if they comply with all the conditions of the programme.

It is said that residential customers, small businesses, faith-based organisations or places of worship, and non-profit organisations may apply on the condition that they comply with the qualifying criteria.

The qualifying criteria

• The market value of the property and all properties owned by the applicant must not exceed R1.5 million excluding business, churches and non-profit organisations customers.
• The account holder’s account balance must be in arrears for more than 90 days as of 31 December 2020.
• The combined gross income from all activities of the account holder/s and spouse must be between R4 750 and R22 000 per month.

Where the monthly gross income from both the residential account holder/s is more than R22 000 only a percentage of the debt above 90 days shall be written off on condition that the account is settled in full.

The scale to be used will be:

• 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 will be offered; all interest and penalty charges shall be reversed
• Above R50 001 = all charges (like disconnection fees) and interest charges shall be reversed

Small businesses, places of worship and non-profit organisation will be required to provide the latest audited annual financial statements with turnover not exceeding R3 000 000. The account must also be kept up to date for 12 months from the date of initial write off.

A debt write-off committee

“The city appointed a “debt write-off” committee that will consider all applications,” the City of Johannesburg wrote on their official website. “The committee will assess all applications on a case-by-case basis.”

If a customer should misrepresent their situation, the city will re-instate the debt and institute immediate termination of services.

Where to submit application forms for the debt write off?

Customers can send an email to debtrehab@joburg.org.za, visit joburg.org.za for application forms, complete the online application form or visit any of the city’s revenue customer service centres across Joburg.