Our new finance minister, Nhlanhla Nene delivered his first budget speech earlier today with increases aplenty. In this article, we will touch on some of the highlights from the 2015 Budget speech that may affect you, looking at the good and the bad.
Starting with the bad…
Income Tax Increases
Bad news if you earn more than R181, 900 per annum. All tax brackets have been pushed up a further 1% except for the lowest one that remains at 18%.
Fuel set to increase
Brace yourself for another increase in the fuel price to the tune of 80.5 cents per litre. This is made up of an increase in the Road Accident Fund Levy of 50 cents a litre and an increase in the fuel levy of 30.5 cents a litre from April 1st.
Sin Tax Hike
It is becoming somewhat of an annual tradition to raise taxes on what most feel are life’s small pleasures. Get ready to pay more for:
- Wine – increasing by 15 cents a bottle
- Sparkling Wine – increasing by 48 cents per bottle
- Whisky – increasing by R3,77 per bottle
- Beer – increasing by 15,5 cents a quart
If you smoke, get ready to pay 82 cents more per pack of cigarettes.
Considering buying a home?
If you are in the market for a luxury home then there is further bad news. Any property over R2,250,001 will be charged an increased transfer duty of R85 000 plus 11% of the property value.
On the flip side though, transfer duties have been removed for houses under the value of R750,000.
Enough with the bad news, we now shift over and look at some of the good points to take away from the 2015 Budget.
At least this is an area where increases are received positively:
- Disability, care and war veteran grants are set to increase by R60
- Child support grants will increase to R330
- Foster care grants will increase by R30
Approximately R640 billion will be allocated to basic education over the next three years, ensuring the youth of SA have access to an improved education.
Assistance for Small business
Small businesses received some really good news earlier today with the announcement of a tax break for small business, aimed at assisting businesses with an annual turnover of less than R1 million. Furthermore, businesses with a turnover of less than R350,000 won’t pay any tax. Minimum rates have also been halved from six percent to three percent.
If you have any questions on how Budget 2015 may affect your tax, contact Brett from Dirmeik Consulting on 021 421 4444.