Key Takeaways:
- A device-neutral household levy is being considered as a replacement for South Africa’s TV licence system
- The current TV licence system has a compliance rate of only 15%, with 85% of households avoiding payment
- The proposed levy would be collected by the South African Revenue Service (SARS) and could range from R100 to R300 per year
- Certain households, such as low-income families and recipients of social grants, may be exempt from paying the levy
- The proposed system aims to generate more revenue for the SABC, but critics argue that it may not be fair to charge households that do not consume SABC content
Introduction to the Issue
The South African Broadcasting Corporation (SABC) is facing a significant financial crisis due to the low compliance rate of its TV licence system. With only 15% of households paying their TV licences, the broadcaster is struggling to fund its operations. The compliance rate has been declining over the years, from 69% in 2019 to 85% in 2025. This has led to a search for alternative funding models, with a device-neutral household levy emerging as a leading option.
The Proposed Solution
In response to the crisis, the Department of Communications and Digital Technologies has appointed BMI TechKnowledge to develop a sustainable long-term funding model for the SABC. The final proposal is expected to be delivered by February 6, 2026. The proposed solution is a universal, device-neutral household levy, which would be collected by the South African Revenue Service (SARS) rather than the broadcaster itself. This approach has been supported by the SABC’s chief executive, Nomsa Chabeli, and board chair, Khathutshelo Ramukumba, who have acknowledged that the current TV licence system is outdated and unworkable.
How the Levy Would Work
The proposed levy would apply to all households, regardless of whether they own a television set, reflecting the shift towards streaming, mobile devices, and online content consumption. The exact cost of the levy has not yet been confirmed, but previous government discussions and policy documents have suggested that households could be charged between R100 and R300 per year. This would place the levy broadly in line with the current annual TV licence fee of R265, but with far higher compliance expected due to SARS collection mechanisms.
Exemptions and Concerns
Policy proposals indicate that certain households may qualify for partial or full exemptions from the levy. These include low-income households, recipients of social grants, rural or underserved communities, and persons with disabilities. Supporters of the proposed system argue that a lower, universally applied fee would generate significantly more revenue than the current licence system, which is undermined by widespread non-payment. However, critics have raised concerns about the fairness of charging households that do not consume SABC content. They argue that it may not be fair to force households to pay for a service they do not use.
Conclusion and Next Steps
No final decision has been made on the proposed levy, and public consultation is expected once BMI TechKnowledge submits its recommendations early next year. The outcome of the consultation will determine the future of the SABC’s funding model and the implementation of the device-neutral household levy. The success of the proposed system will depend on its ability to generate sufficient revenue for the SABC while ensuring that the burden is shared fairly among households. The consultation process will provide an opportunity for stakeholders to express their views and shape the final outcome. Ultimately, the introduction of a device-neutral household levy could provide a more sustainable and equitable funding model for the SABC, but it will require careful consideration of the concerns and needs of all stakeholders involved.
