FANews
FANews
RELATED CATEGORIES
Category Economy
SUB CATEGORIES Budget 2017 |  Budget 2018 |  Budget 2019 |  Budget 2020 |  Budget 2021 |  Budget 2022 |  Budget 2023 |  Budget 2024 |  General | 

Post budget speech commentary

27 February 2020 Standard Bank Wealth

Tax-Free Savings:
“The annual tax-free saving contribution limit increased from R33k to R36k but the lifetime savings limit was not adjusted and remains at R500 000. This move increases the attractiveness of the tax benefit on tax-free investments for individuals. We are confident that this will encourage more individuals to look at tax-free investments as a way of long-term saving. However, a move by government to increase the R500 000 lifetime limit would also have been welcomed.” – Kuhle Kunene Head of Wealth Advisory Standard Bank.

Personal Income Tax:
The biggest surprise is the personal income tax relief announced by the Minister. The above-inflation increases in the income tax brackets provides welcome relief to many consumers. This relief, in conjunction with lower inflation and the recently announced reduction in interest rates will make it easier for consumers to manage their already constrained personal budgets. Errol Meyer, Legal Specialist, Advisory, Standard Bank

Medical Credits:
Another welcome move is the increase in medical credits. In the 2018 Budget Review government chose not to increase medical credits with the purpose of accruing funding for the future rollout of National Health Insurance. However, this year taxpayers were fortunate that there was an increase in these credits albeit lower than inflation. Errol Meyer, Legal Specialist, Advisory, Standard Bank

Trusts:
Trusts used for estate duty savings purposes are being scrutinised and we can expect another round of anti-avoidance rules. Errol Meyer, Legal Specialist, Advisory, Standard Bank

Quick Polls

QUESTION

How confident are you that insurers treat policyholders fairly, according to the Treating Customers Fairly (TCF) principles?

ANSWER

Very confident, insurers prioritise fair treatment
Somewhat confident, but improvements are needed
Not confident, there are significant issues with fair treatment
fanews magazine
FAnews June 2024 Get the latest issue of FAnews

This month's headlines

Understanding prescription in claims for professional negligence
Climate change… the single biggest risk facing insurers
Insuring the unpredictable: 2024 global election risks
Financial advice crucial as clients’ Life policy premiums rise sharply
Guiding clients through the Two-Pot Retirement System
There is diversification, and true diversification – choose wisely
Decoding the shift in investment patterns
Subscribe now