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Cape Town Budget 2025/26: Caution Rising Costs Ahead

GOOD Statement by Anton Louw,GOOD City of Cape Town Councillor 04 April 2025 The GOOD Party is urging Cape Town residents to use the city’s rates calculator to better understand the impact of the new draft budget.  After years of criticism about the Energy tariff subsidising the rates department, this has been done away with, leaving the Rates department […]

The post CAPE TOWN BUDGET 2025/26: CAUTION RISING COSTS AHEAD appeared first on For Good.

Statement by Anton Louw, GOOD City of Cape Town Councillor:

The GOOD Party is urging Cape Town residents to use the city’s rates calculator to better understand the impact of the new draft budget.  After years of criticism about the Energy tariff subsidising the rates department, this has been done away with, leaving the Rates department with a shortfall. This shortfall has seen a Property Rates increase of 7,96% and the introduction of four fixed charges.

Key changes include:

  • Electricity Service and Wires Charges: Home user electricity surcharges have increased by 33%, from R245 to R339. Additionally, properties valued between R500,000 and R1 million are now subject to a fixed charge of R59.90 per month.
  • New Tariffs: A new cleaning tariff and revised water and sanitation charges, both linked to property value, have been implemented.
  • Sewerage: While the city claims the reduction in sewerage variable costs will balance out the new fixed charge, residents may not experience this. For instance, a property valued at R3 million with water consumption of 10 Kl per month (via a 15mm water meter size) will pay 36% more for sewerage once the new fixed charge is applied.

The city’s rates and tariffs calculator, available on the official website, can help estimate the monthly impact on rates based on factors such as property size, water usage, electricity consumption, and refuse collection. However, based on preliminary calculations, it’s clear that residents are facing significant increases.

Property Value July 2024 – June 2025 July 2025 – June 2026 RAND INCREASE % INCREASE
R1 000 000 R5 423,36 R5 673,18 R249,82 4,61%
R1 500 000 R5 699,65 R6 043,39 R343,74 6,03%
R3 000 000 R6 528,53 R7 262,73 R734,20 11,25%
R5 000 000 R7 633,69 R9 040,01 R1 406,32 18.42%
R7 500 000 R9 255,53 R11 126,10 R1 870,57 20,21%

*Based on 15mm water meter size, 30kl water consumption, 750kWh prepaid electricity consumption, 1 refuse bin

It is also worth noting that there has been no increase in indigent relief, which remains the same as per the 2024/25 budget.

The draft budget signals a sharp increase in costs for many residents, despite the city’s attempts to downplay the increases.

Residents have until the 2nd of May to voice their concerns:

https://www.capetown.gov.za/City-Connect/Have-your-say/Issues-open-for-public-comment/draft-budget-for-2025-2026

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