You are Here > My Money > The 2021 Budget and your money

The 2021 Budget and your money

Feb 25, 2021

Ten ways the Budget affects your personal finances:

The 2021 Budget and your money

  • Your tax rate is not going up! In fact, thanks to an above-inflation adjustment to the tax brackets, personal income tax payers receive back R2.2bn. The R40bn tax measures that were proposed in the 2020 October medium term budget have been scrapped.
  • Medical tax credits increase by inflation to R332 for the first two members, and R244 for other members. A family of four belonging to a medical aid would get R1 152 in tax credits.
  • The special COVID-19 social relief of distress grant is extended to April 2021 but the increases for grant recipients are well below inflation. The social old age pension goes up by only R30 to R1 890, and the child support grant only goes up R10 to R460.
  • You will pay R1.39 more for cigarettes, 14c more for a beer and 26c more for wine as sin taxes increase by 8%, generating an additional R1.1bn in tax revenue.
  • Fuel taxes increase by 27c per litre. From 7 April you will pay R6.15 in tax for every litre of petrol.
  • A plastic bag tax (25c/bag) will now apply to bio-based plastic bags but at a lower rate of 12.5c/bag.
  • There is no increases in investment taxes such as capital gains or dividend tax.
  • There was no update on retirement reform or early access to retirement funds, but there is a proposal to allow retiring members to purchase more than one annuity product at retirement.
  • There is a proposal to introduce taxation of your retirement benefit withdrawal if you emigrate.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Maya Fisher-French author of Money Questions Answered

Previous Articles

Inside a cryptocurrency scam

Social media networks are being used to lure people into a cryptocurrency scam. A sophisticated social media network is being used to con South Africans by claiming to generate huge returns through trading. The network is made up of 300 fake twitter accounts...

Working from home? You can claim from SARS

Elani van der Westhuizen, senior tax technical at TaxTim, explains what you can claim from SARS if you've been working from home. There's some good news for you if you’ve been working from home for the past year. You can claim a tax deduction if you worked from home...

Video: Set goals for money success

The key to achieving our money goals is to use psychology to set us up for success. When it comes to our money goals, behavioural economist Erik Vermeulen says we need to set specific long-term goals, but also have built-in intermediate success measures to make our...

Anger over high-cost investment products

A blame-game is starting with complaints about overpaid financial advisers and expensive product options. Readers have provided numerous examples of high-cost investment products sold by advisers working for large insurance firms. Clients are angry about high fees and...

Finding a more equitable credit model

The Save2Buy model is a hybrid between a lay-by and more traditional credit. In a world where credit has become a way of life, is it possible to find a system that allows someone to purchase an item and have use of it whilst paying it off, but without being fleeced by...

Can you bag a cheap deal on an overseas holiday?

Taking an overseas holiday is still possible but this can come at great risk to travellers’ pockets, finds Angelique Ruzicka. Differing social distancing rules and travel bans imposed by countries and airlines have done much to disrupt the global travel industry,...

Listen: Investigating crypto scams

In this My Money, My Lifestyle podcast we delve into the world of crypto scams which seem to be mushrooming everywhere, despite repeated warnings from our authorities. How do these crypto scams work? How do people get lured into parting with their hard-earned cash?...

Video: Understand your electricity bill

The cost of electricity will increase by 15% in April. That is triple the rate of inflation which means a bigger portion of our budget will go to paying for electricity. It is worth taking the time to understand how your electricity is charged for and to find ways to...

When does it make sense to have a travel allowance?

If you are required to travel for work there are several ways to claim for this expense. You can receive a travel allowance or be provided with a company car. In the case of a travel allowance, the employer would normally pay a set amount, for example R5 000 a month....

FSCA issues crypto health warning

The FSCA wants to warn the public that if something goes wrong with your crypto investment, you are not likely to get your money back and will have no recourse against anyone. The Financial Sector Conduct Authority (FSCA) has noted with concern the increasing volume...

Pin It on Pinterest

Share This