The City of Johannesburg, during its Council meeting held on Thursday, 24 February 2022,
approved a further extension of the Debt Rehabilitation Program. The extension period is effective from 1 March until 30 June 2022.
Joburg Debt Rehabilitation Program is in line with priority number four of the “Golden Start” initiative announced by the Mayor, Mpho Phalatse. This intervention is designed 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 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.
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 condition that the account holder/s settles 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 0001 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.
To apply for the program, customers can send an email to debtrehab@joburg.org.za or visit
www.joburg.org.za to access application forms or apply online.