South Africa’s new traffic fine laws can stop companies from transferring their vehicles

The Administrative Adjudication of Road Traffic Offences (AARTO) Act has officially been introduced in most of South Africa’s major cities.

Phase 2 of the AARTO rollout began yesterday on 1 July 2026, introducing the new traffic laws across 62 municipalities.

The remaining 151 municipalities will be added to the system in the third quarter of this year; however, the new demerit point system will only be introduced in 2027.

While AARTO has important implications for private motorists, it also creates new compliance measures that businesses need to be aware of in South Africa.

This is according to the CEO of Masterdrive, Eugene Herbert, who stated that, for businesses operating vehicles in one of the 62 municipalities, AARTO is no longer a future compliance concern. 

“It is an active legal reality with immediate administrative and financial implications, and the businesses responding fastest will be the ones best protected,” he said.

The CEO explained that every fine issued to a company vehicle is now linked directly to their official Business Registration Number (BRN) through eNaTIS.

“Fines can no longer be avoided or delayed through unclear driver accountability,” he warned.

“Businesses need to appoint an individual or team to trace, verify and settle fines promptly, ideally within 30 days, when the discount still applies.”

Fleet operators who have not yet reviewed their internal processes must do so immediately.

Herbert said that companies need to create systems that can track outstanding fines against fleet vehicles, verify payments consistently, and ensure that their employees understand their role in reducing traffic infringements.

“More importantly, businesses that already run structured driver training programmes are far better positioned to limit the effect.”

“The number of offences that generate fines in the first place will be significantly lower with drivers who are aware of and actively avoid bad driving habits. It means rather than managing the paperwork after the fact, the offences often never happen.”

Businesses under AARTO need to be aware of the consequences

Herbert warned that, under AARTO, the cost of inaction extends well beyond the fine itself.

“Vehicles with unpaid fines cannot be licensed, renewed or transferred, effectively grounding them until the outstanding amount is settled.”

“This can result in vehicles sitting idle, deliveries delayed, and operational disruptions that compound the longer an organisation takes to resolve it.”

He noted that while the demerit point system will only be introduced in a later phase, unresolved compliance gaps today will become more serious once drivers start accumulating points.

When the demerit system goes live, motorists will receive points on their licences for various driving infringements, with more serious infractions earning more points.

Once a person exceeds 15 points, their licence will be suspended for a period of three months for every point over the limit.

If an individual’s licence is suspended for a third time, it will be cancelled altogether and they will be required to retake their learner’s and driver’s tests once the suspension period is over.

This presents a risk to businesses, as employees could potentially have their licences revoked over their driving infringements.

“Historically, less than 20% of traffic fines accumulated in the previous system in South Africa were paid,” said Herbert.

“AARTO is specifically designed to close that gap, which means businesses without formal compliance processes are now the most exposed as the rollout continues.”

Below is a list of the 62 municipalities where Phase 2 of the AARTO rollout has begun: