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Budget 2023 – Bold actions are required to secure a better future

23 February 2023

Debt stabilisation, difficult budgeting trade-offs, and fiscal constraints were some of the recurring themes in the 2023 National Budget Speech tabled on 22 February 2023 by Minister Godangwana.

While no major tax proposals were announced, these themes are as relevant to our country’s budget as they are to our own personal household budgets. As South Africans, we too need to ‘act boldly’ to get from where we are now, to where we want to be in the future. This means making difficult trade-offs in the short term to enable a more secure financial future. A strong focus should be placed on paying off debt, with careful consideration given before taking on further debt.

If you don’t know where to start, a professional financial adviser can offer practical solutions and create a financial plan to move from your current financial state to a better one.

How the 2023 National Budget Speech impacts you

  • Inflationary increases will be made to personal income tax brackets, medical tax credits and ‘sin tax’
  • In a further bid to provide relief, properties below R1.1 million are now exempt from transfer duty payments (10% increase)
  • Tax-free lump sum withdrawals at retirement have increased by 10% to R550,000

The government will publish a revised legislation draft of legislation on the ‘two-pot’ retirement system. In a bid to encourage the preservation of retirement savings, this will include withdrawals from the ‘savings pot’ being taxed as income in the year of withdrawal.

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