Transport Minister Rejects Road Accident Fund Levy Hike
The Road Accident Fund's audit outcome improved to unqualified, while the Fund pursues claims backlog and control reforms.
Updated on Nov. 3, 2026 in Corporate Finance
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The Minister of Transport will not agree to an increase of the Road Accident Fund's fuel levy portion at this time. The Fund has also changed its accounting treatment for claims liabilities under GRAP 19.
Why it matters
The decision leaves the Fund's funding model unchanged while it works through claims payments and internal controls. Any future funding measures must balance the interests of road users and taxpayers.
The Fund's audit opinion improved to unqualified under the revised claims liability treatment in GRAP 19, though the extraction does not provide figures on cash movements or the claims backlog value.
The players
Road Accident Fund
The statutory South African fund that compensates victims of road accidents and is funded in part through a fuel levy.
The details
The Fund has revised its Claims Assurance mandate and is implementing IT control measures to detect duplicate, wrong and over payments. A Claims Payment Strategy prioritising the oldest compliant claims and a Backlog Reduction Project with ring-fenced resources are also under way, alongside consequence-management measures for irregular and fruitless expenditure.
Timeline
Accounting change and audit outcome reported as of 3 November 2026
Market Dynamics
The Fund's claims liability reporting now follows the GRAP 19 framework, which governs how public entities recognise provisions in South African public-sector financial statements. The Fund's improved unqualified audit opinion places it on a different footing from prior audit cycles.
Road users and taxpayers are not facing a levy increase at this stage, as the Minister has declined to raise the fuel levy portion. Any future change would require a fresh ministerial decision and would affect fuel prices directly.
The takeaway
Stable levy settings give the Fund room to focus on clearing claims and tightening controls, but the sustainability of its funding will depend on how it manages the backlog over the coming years.
Further reading
Explore more on Corporate Finance for context on how state entities manage funding and reporting.
Source note: This article includes information reported by Pmg.
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