Rustenburg Local Municipality says the implementation of Phase 2 of the Administrative Adjudication of Road Traffic Offences (AARTO) Act is expected to significantly reduce municipal revenue, with 70% of traffic fine collections now being redirected to the Road Traffic Infringement Agency (RTIA).
The municipality officially implemented the new system on 1 July 2026 after presidential proclamations designated Rustenburg as one of 62 municipalities nationwide to roll out Phase 2 of AARTO.
Speaking on YOUFM Newshour, Executive Mayor Sheila Mabale-Huma said the loss of traffic fine revenue would place additional financial pressure on the municipality, which previously relied on the income to fund service delivery programmes.
“This has negatively impacted our finances as a municipality. We relied on traffic fine collections to fund some of our programmes. Under AARTO, RTIA receives 70% of the revenue, while municipalities retain only 30%,” she said.
Mabale-Huma noted that the South African Local Government Association (SALGA) had unsuccessfully challenged the revenue-sharing model in court, arguing that municipalities would lose a vital source of income.
Despite the financial impact, she said Rustenburg was legally obliged to implement the new system and had trained its traffic officers and support staff to ensure compliance.
The municipality’s infringement system has also been integrated with the RTIA, meaning all infringement notices are now processed through the national agency.
While motorists are now at risk of administrative penalties that could affect vehicle licence renewals if fines remain unpaid, Mabale-Huma urged road users to comply with traffic laws and renew their licences on time.
The AARTO rollout forms part of government’s broader strategy to improve road safety, standardise traffic law enforcement and reduce road fatalities across South Africa.
