CAPE TOWN BUDGET 2025/26: CAUTION RISING COSTS AHEAD

4 April 2025

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 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 ValueJuly 2024 – June 2025July 2025 – June 2026RAND INCREASE% INCREASE
R1 000 000R5 423,36R5 673,18R249,824,61%
R1 500 000R5 699,65R6 043,39R343,746,03%
R3 000 000R6 528,53R7 262,73R734,2011,25%
R5 000 000R7 633,69R9 040,01R1 406,3218.42%
R7 500 000R9 255,53R11 126,10R1 870,5720,21%

*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

Media enquiries: media@forgood.org.za