You may have recently noticed an additional charge of R1,083.60 on your latest rates bill from the City of Johannesburg. We would like to take a moment to explain why this charge has appeared and what it means for you as a property owner. This relates to a municipal discount called the Threshold Rebate.
Understanding the Threshold Rebate
For freehold residential properties, the city applies a discount of R300,000 (the Threshold Rebate) off the municipal valuation of the highest value property before calculating your monthly rates. This discount equals roughly R238.62 per month for the 2025/2026 financial year and consists of two parts:
• A mandatory R15,000 rebate, which is R11.93 per month.
• An optional R285,000 rebate, which the city reviews every 5 years and equals R226.69 per month.
Together, these make up the total monthly discount of R238.62.
What is the Extra Charge and Why Are You Now Being Charged This Amount?
In the Rates Policy for the year 2024/2025, a new clause was introduced, which states that the Threshold Rebate does not apply to the second and any additional properties owned by the same person in Johannesburg. This will be linked to either your ID number or the company or trust registration number on their system. This means that while the mandatory R15,000 rebate still applies, the optional R285,000 rebate must be paid back for each additional property. The City of Johannesburg decided that property owners with more than one residential property in Johannesburg would be billed extra charges labelled as "Add Section 15 of MPRA adjustment," amounting to approximately R226.69 per property.
The R1,083.60 Charge Explained
The amount of R1,083.60 reflects the backdated rebate for the months from July to November 2024 (five months), as the extra charges were only implemented on their billing system starting December 2024. This is calculated as 5 months × R216.72 (the 2024/2025 period charge), with minor rounding differences. This is a one-time catch-up charge, but it is payable. Additionally, if you own more than two properties, you may see similar charges for each additional property.