The Department of Transport says that its ‘smart enrolment’ trial in certain testing centres this year proved to be a success, with the plans to roll out the system to the rest of the country in 2023.
Transport minister Fikile Mbalula said that the smart enrolment solution was successfully piloted at the Waterfall and Eco-Park Centurion Driving Licence Testing Centres (DLTCs), and the system will go live in Gauteng in March 2023 before being fully deployed to other provinces.
The system was launched on trial basis to address the growing driving licence backlog in the country. Tests conducted by MyBroadband found that DLTCs where the system was being used had the best availability for licence renewals.
Motorists who need to book a licence or renewal do so on the eNatis website, where they select a preferred centre and timeslot. Once the booking is completed, they show up at the allotted time and complete the process.
The smart enrolment system assists with the capturing of details during the booking, integrating directly with Home Affairs, ensuring that the photos, fingerprints and other information is checked and captured in real-time.
This sidesteps the problem of having to show up and stand in long queues hoping to get services and waiting for lengthy data capture to take place. BusinessTech recently tested the renewal process at the Waterfall DLTC and managed to complete a licence renewal in 20 minutes.
WATCH: CEO of @TrafficRTMC Adv.Msibi explaining how the smart Enrollment unit works.
A new Innovation introduced. #DLCA @MbalulaFikile @GovernmentZA pic.twitter.com/OAhi7zuydn
— Department of Transport (@Dotransport) September 2, 2022
Mbalula said that, to date, the department has managed to process and produce in excess of 2 million cards, dealing with the backlog.
“Not only have we been able to reduce the turn-around time for our card production to pre-Covid levels, we have now improved on those levels. We have successfully reduced the waiting period for a driving licence card from 58 working days in April 2022 to 10 working days in July 2022,” he said.
Despite this progress, he said that some 1.2 million motorists are still on the roads with expired licences.
“This goes against the grain of our efforts to arrest carnage on our roads. One of the biggest contributors to this carnage is driver competence. We will, therefore, up the ante in our law enforcement efforts in order to bring to book these wayward motorists who have no regard for the law or the safety of others on the road,” he said.
He said that three-quarters (67%) of those who have not renewed their driving licences are between the ages of 25 and 50 years; 15% between the ages of 50 and 60 years; 17% above 60.
The most compliant groups are those 25 years and younger, who account for only 1% of drivers who have yet to renew their driving licences, he said.
“Our investigations have revealed that the vast majority of those who are not renewing their licences have infringements,” he said.
New licences
In a statement on Thursday, Cabinet said the technology has since evolved, and it is becoming expensive to maintain the current infrastructure.
“The new proposed card will make the country’s driving licence compatible with the International Information Technology Personal Identification Compliant Driving Licence (ISO18013),” Cabinet said.
Mbalula said the department would publish the changes to the driver’s licence card in the government gazette, with a procurement process for the new production infrastructure beginning next month.
A pilot phase of the new card would begin on 1 November, running through to 31 March 2024.
“The current driver’s licence card and the equipment used to produce it will be decommissioned on April 1 2024,” Mbalula said. “However, there will be a five-year period of transition from the old card to the new one. The current cards will continue to be recognised as valid until March 31 2029.”
The transport minister has also said that his department is ready to look at amending the five-year validity period that currently applies to driver’s licence cards in South Africa.
Tax and Insurance in South Africa: What You Need to Know in 2025
In South Africa, understanding the relationship between tax and insurance is essential for protecting your financial future and making the most of available tax benefits. Whether you're an individual, a freelancer, or a business owner, the smart use of insurance can help you reduce your tax liability and safeguard your assets.
Why Insurance Matters for Tax in South Africa
Insurance is more than just a safety net—it can also have a direct impact on your tax situation. From medical insurance to business insurance, certain premiums and policies may qualify for deductions or influence how you declare your income and expenses to SARS (the South African Revenue Service).
- Tax Deductions: Certain insurance premiums, especially related to medical schemes and business cover, may offer tax advantages.
- Asset Protection: Insurance helps manage risk, ensuring you’re financially secure when unexpected events occur.
- Estate Planning: Life insurance can play a key role in reducing estate duty and ensuring a smooth transfer of wealth.
Types of Insurance and Their Tax Implications
1. Medical Insurance (Medical Schemes)
If you're contributing to a registered medical aid, you're entitled to a Medical Scheme Fees Tax Credit (MTC). This credit is a fixed amount per month for you and your dependents and reduces your overall tax liability.
2. Life Insurance
While life insurance pay-outs (on death) are generally not subject to income tax, they can be considered when calculating estate duty. Policies structured under a trust or with specific beneficiaries may help reduce the overall tax burden on your estate.
3. Short-Term Insurance (Vehicle, Home, Contents)
Personal short-term insurance is not tax-deductible for individuals. However, if you use part of your home or vehicle for business, the portion of insurance premiums related to business use may be claimed as a business expense.
4. Business Insurance
For companies and self-employed individuals, business insurance premiums—such as professional indemnity, commercial property cover, or key person insurance—are usually tax-deductible as operating expenses.
5. Disability and Income Protection Insurance
The tax treatment of disability insurance changed in recent years. Payouts from income protection insurance are now generally taxed as income, but premiums are not tax-deductible. Understanding this shift is important when planning your cover.
Tax Tips to Maximise Your Insurance Benefits
- Keep Detailed Records: Always keep documentation of insurance premiums, especially those linked to business or medical expenses.
- Consult a Tax Practitioner: SARS regulations around insurance and tax can be complex. A registered tax advisor can help ensure you claim all available deductions correctly.
- Review Policies Annually: Update your insurance portfolio regularly to ensure your cover aligns with your income, expenses, and current tax laws.
- Use Structuring Wisely: For high-net-worth individuals, structuring life insurance policies within a trust can reduce estate duty exposure.
Frequently Asked Questions: Tax and Insurance in South Africa
Q: Can I deduct life insurance premiums from my South African taxes?
A: No, life insurance premiums are generally not deductible. However, they may play a key role in estate planning.
Q: Are medical aid contributions tax-deductible?
A: Not exactly. Instead, you receive a Medical Tax Credit—a fixed monthly rebate that reduces your tax payable.
Q: Can I claim car insurance as a tax deduction?
A: Only if the vehicle is used for business purposes. You can claim the business-use portion of your vehicle insurance.
Q: Is business insurance tax-deductible in South Africa?
A: Yes. Business insurance premiums related to company operations are generally tax-deductible.
Final Thoughts
In South Africa, insurance isn't just about protection—it's a strategic tool for managing your tax liability, preserving wealth, and supporting long-term financial stability. Whether you’re reviewing your medical insurance, planning your estate, or choosing the right business insurance, it’s essential to understand how these choices affect your tax outcomes.
With the right advice and a well-structured insurance portfolio, you can reduce your tax bill while ensuring comprehensive protection for yourself, your family, or your business.