Budget Highlights 2024/2025

02/21/2024
  • Personal income tax
    • No change to personal income tax brackets, rebates and medical tax credits.
  • Excise duties
    • Increase in excise duties of between 6.7% and 7.2% on alcohol products, and between 4.7% and 8.2% on tobacco products.
  • Fuel and RAF levies
    • No change to the general fuel levy and road accident levy.
  • Climate and environment
    • Introduction of an electrical and hydrogen-powered vehicle tax incentive, enabling manufacturers to deduct 150% of qualifying investment spending, to be introduced from 1 March 2026.
    • Plastic bag levy to increase from 28 cents to 32 cents per bag from 1 April 2024.
  • Learnership tax incentive
    • To be extended by three years to 31 March 2027.
  • Retirement funds
    • Two-pot retirement reform, which enables pre-retirement access to a portion of one’s retirement assets, to be implemented on 1 September 2024.
  • Global minimum corporate tax
    • Multinational corporations to be subject to an effective minimum tax rate of 15%, regardless of where profits are located, from 1 January 2024.

Disclaimer: The information contained in this article is a summary of current legislation and budget proposals proposed by the Minister of Finance on the 21st February 2024. We suggest that you do not act solely on material contained in the booklet as the nature of the information contained herein is general and may in certain circumstances be subject to misinterpretation. In addition, the budget proposals may not include all legislative adjustments which could be made in the near future. Consequently we recommend that our advice be sought when encountering these potentially problematic areas. While every care has been taken in the compilation of the booklet, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions.