Debtfree Issue 202402 - DB

SA BUDGET 2024
HOW YOUR PERSONAL TAX
IS GOING TO BE AFFECTED
Money is tight and the Government are looking to limit spending
and increase income. Other than the usual increases to sins tax
Government decided to avoid introducing many new taxes or messing
with VAT. There was one slightly different choice in regard to personal
tax this year that may hit your pocket.
In an effort to bring in an additional R15 billion more than usual,
Finance Minister Enoch Godongwana outlined “new” tax brackets for
personal income taxpayers in his annual Budget speech.
Now, usually, there is a small annual increase in these tax brackets to
allow for inflation. So, the tax brackets normally creep up a little bit
each year. This normally means that people stay in the same bracket
even if they earn slightly more due to increases in salary.
The big change this year is that this is not going to happen.
What this will mean is that if employers offered staff increases to try
offset inflation, then some workers will migrate from one tax bracket
into a higher bracket and have to pay a little more tax.
The tax-free threshold for taxpayers under 65 years will remain at R95
750 per year.
You can check the chart to the left to see what those different tax
brackets are and what the tax in each bracket is.