For the first time in quite a while, I’m extremely positive about the national budget.

This is, in my view, a genuinely pro-growth and pro-business budget – something we haven’t been able to say with confidence in recent years.

Here are the key highlights that stood out:

KEY HIGHLIGHTS

• Personal income tax brackets increased in line with inflation.
  In previous years, we often experienced “bracket creep” – where tax brackets remained unchanged while inflation pushed taxpayers into higher brackets. This adjustment provides welcome relief.
• Compulsory VAT registration threshold increased from R1 million to R2.3 million.
  This is significant news for small, service-based businesses that generate revenue from non-VAT vendors.
• Voluntary VAT registration threshold increased from R50 000 to R130 000.
• Donation tax exemption for natural persons increased from R100 000 to R150 000.
• Primary residence exclusion increased from R2 million to R3 million.
• Annual CGT exclusion for individuals increased from R40 000 to R50 000.

These adjustments create greater flexibility when structuring trust distributions and allow for more effective tax planning. Our members will understand exactly what this means in practice.

Based on the information currently available to me, I also expect we could see at least a further 0.75% repo rate reduction this year. If this materialises, it will further stimulate growth and strengthen investor positioning.

Article written by:
Johannes Maree CA (SA) | PPRE
CEO – Destinata Capital Ltd