The updated AARTO Act encourages vehicle owners and fleet managers to respond quickly to fines. Ignoring these fines can lead to significant repercussions, including licence suspensions, denied renewals, and immobilised vehicles. As the deadline for the national rollout approaches, businesses across South Africa are gearing up for a significant shift in traffic law that hasn't occurred in decades.
The Administrative Adjudication of Road Traffic Offences Act offers a fresh perspective on handling fines, marking a major change in how vehicle owners and fleet managers tackle their risk exposure. The national rollout is set for 1 July 2026 across South Africa, with the demerit point system set to go live by September of this year.
This isn't just "another traffic law"—it's a major shift in business risk and driver accountability.
How the new AARTO Act works is that it shifts all traffic violations from the criminal courts to an administrative system. This change then eliminates arrest warrants for unpaid fines but in its place, introduces a more systematic consequence: demerit points.
Here’s how the demerit point system works. Every driver starts with zero points. Fully licensed drivers can accumulate up to 15 points before facing a licence suspension, while learner drivers have a much lower limit of 6 points.
When it comes to suspensions, the calculations are quite simple. For every point over the 15-point limit, a driver’s licence will be suspended for three months. For example, if a driver hits 18 points—3 points over the limit—they’ll face a suspension of nine months.
There’s also a "three strikes" rule. A licence can only be suspended twice. If a driver reaches the limit for the third time, their licence will be permanently invalidated, requiring these drivers to restart the entire testing process from scratch (learner’s and driver’s tests).
When it comes to point reductions, it’s important to remember that points don’t last forever. A driver will lose one point for every three months they drive without any violations.
Each type of offence adds 1–6 points to a licence:
The new AARTO Act impacts vehicle owners and small businesses in South Africa by streamlining the legal processes and preventing the renewal of vehicle and driving licences for those who don’t comply. So unlike the previous system, notices are now delivered legally via email or SMS.
With the new act in place, ignoring infringements is no longer an option. This system is designed to operate digitally and is described as “self-executing”.
Electronic service is now legally required. Any notifications that are sent through email, SMS, or WhatsApp are regarded as legally binding. So, if you don’t check your inbox, you can’t claim that you weren’t served.
Once an infringement notice is issued, you have a period of exactly 32 days to take action. During this time, you can do several things; you can:
If you don’t take any action within this 32-day period, you will receive a "Courtesy Letter" and eventually an "Enforcement Order". An enforcement order will stop you from renewing your vehicle licence discs or carrying out any transactions on the eNaTIS system.
The new AARTO Act gives fleet managers major admin responsibilities with regard to driver accountability. So basically, companies can't accumulate demerit points, but they must identify the responsible driver within 32 days of an offence. If they don't, the business faces fines, often tripled, and risks having operator cards suspended, which could ground the entire fleet.
Every company with a fleet should appoint a proxy who serves as the legal representative for the fleet. While the proxy won’t receive demerit points for a driver’s speeding ticket, they must ensure the fine is assigned correctly. If the proxy fails to nominate the driver within 32 days, the company then becomes liable for the demerit points and the fine, which can often be three times the original amount.
Operators of heavy vehicles face increased risks. AARTO permits the suspension of your operator cards. If your company has a history of ignored infringements, your business’s BRN could be blocked on ENatis, and having these operator cards suspended, you’d end up potentially grounding the entire fleet.
The HR and legal implications for businesses with the new AARTO Act include updating employment contracts, incapacity procedures, disciplinary processes, and consent and privacy clauses. This Act can potentially halt your operations, and since driving is essential for many roles, a suspended licence leaves the employee legally "incapable" of performing their responsibilities.
This is why employers must update contracts to include AARTO disclosure clauses and look into alternative non-driving roles before proceeding with a dismissal under the Labour Relations Act.
Cartrack can help you solve the AARTO puzzle by providing digital proof of vehicle control with driver ID tags. These help fleet managers quickly identify who was driving a vehicle during any infringement, simplifying the nomination/identification process. Additionally, real-time alerts help managers tackle behaviours that might result in high-point offences, such as speeding, before they lead to official fines.
To successfully prep your business for the new AARTO Act that’s expected to be fully implemented by July 2026, we’ve put together a checklist to make your life—whether you’re a business owner with a fleet or not—so much easier
AARTO isn’t here to complicate your driving experience; it aims to save lives by keeping repeat offenders off the roads. For fleet managers, reacting to issues is now too costly, so taking a proactive approach is the best way to safeguard your finances.
For more clarity, this video offers a clear breakdown from the Department of Transport about the delays in rollout and the details of the demerit system.
How the new AARTO demerit system affects your fleet operation. Check out key dates, operator card risks, and how to manage driver compliance for 2026.
