Herschel Jawitz
CEO, Jawitz Properties
Overall, this is a consumer friendly budget that should bring some welcome relief to taxpayers and in turn, support the growth of the economy.
The inflationary increase to tax bracket thresholds is a welcome change from 2025, when the brackets weren’t adjusted, and puts more disposable income into South Africans’ pockets. The increase in thresholds for tax-free savings and tax-free retirement fund contributions are also very welcome.
The lift in the VAT threshold is good news for small businesses.
While increases in fuel levies and excise duties were expected, they are inflation-linked, and don’t add significant additional pressure to consumers.
The good news for property sellers is that the exclusion of capital gain on the sale of a primary residence has been significantly lifted from R2m to R3m. The first time threshold has been changed in the last few years, this shift is likely to stimulate the listing of stock onto the market, along with freeing up capital for buyers considering their next move.
There were no changes to transfer duty thresholds, which is good news for buyers in a market where prices are starting to increase again.
This consumer friendly budget has been delivered in the context of an economy that’s slowly starting to turn, even if off a low base. With further interest rate cuts and controlled inflation likely during this year, this budget is likely to have a positive effect on demand in the residential property market, as more disposable income in consumers’ pockets is likely to lead to more demand from buyers and lessees.
