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BUDGET SPEECH 2016 CHANGES

BUDGET SPEECH 2016 CHANGES have come into effect with the recent budget speech that Finance Minister PRAVIN GORDHAN delivered 24th February 2016.

The South African government have plans in the forthcoming year to:

Manage finances in a prudent and sustainable way

Re-ignite confidence and mobilise the resources of all social partners

Collectively invest more in infrastructure to increase potential growth

Give hope to our youth through training and economic opportunities

Protect South Africans from the effects of the drought

Continuously improve our education and health systems

Accelerate transformation towards an inclusive economy and participation by all

Strengthen social solidarity and extend our social safety net. The Budget rests on the idea of an inclusive social contract, encompassing an equitable burden of tax and a progressive programme of expenditures.

How are some of the ways they will achieve this? Lets have a look at the summary of changes below:

BUDGET SPEECH 2016 CHANGES 

All changes below are effective from 1 March 2016 to 28 February 2017:

  • Tax Tables
  •  Budget Speech 2016 Changes
    Tax Tables1
  • Medical Aid Tax Credit Changes:
    • Main Member: R286.00
    • First Dependent: R286.00
    • Each Additional Dependent: R192.00
    • Where employees are over 65, include a tax credit of 33.3% on the difference between total medical aid contribution and 3 times their allowable tax credits. 

 

  • COIDA Limit Increase:
    • New limit of R377 097.00 effective 1 April 2016

 

  • Subsistence Allowance:
    • Meals and Incidental Costs: R372.00
    • Incidental Costs only: R115.00

 

  • Non-taxable Re-imbursive Rate:
    • Non-taxable portion limited to R3.29/km

Click here for further information on the 2016 budget speech

http://www.sars.gov.za/About/SATaxSystem/Pages/Budget-Speeches.aspx

Being a client of Pay Solutions you can feel confident that all legislative changes are implemented timeously, accurately at no additional cost or hassle to you.