25/02/2026
Budget 2026: Stability Creates Opportunity
The 2026 Budget is not about dramatic reform or sudden shocks. It is about stability, consolidation, and measured recovery.
For businesses and individuals, that matters.
Key outcomes include:
• VAT remains at 15 percent
• Personal income tax brackets adjusted in line with inflation
• Proposed R20 billion income tax increase withdrawn
• Government borrowing reduced to R380 billion from R563 billion
• Economic growth projected at 1.6 percent
• Inflation expected at 3.4 percent
• VAT registration threshold for small businesses increased to R2.3 million
• Tax free savings contribution limit increased to R47,000
• Retirement fund deduction cap raised to R430,000
The budget deficit is narrowing and debt service costs are easing. However, government will still allocate R432.4 billion to debt repayments in 2026. That reality keeps fiscal discipline firmly on the agenda.
For our clients, this creates a valuable window of relative certainty.
Certainty does not remove risk. It creates opportunity.
Now is the time to review your structures, optimise tax efficiency, stress test cash flow planning, and position your business strategically while the policy environment is stable.
Smart positioning in a stable year builds resilience for the volatile years that inevitably follow.
The budget deficit is narrowing, and debt service costs are easing. However, government will still allocate R432.4 billion to debt repayments in 2026. That reality keeps fiscal discipline firmly on the agenda.
Now is the time to review your structures, optimise tax efficiency, stress-test your cash flow planning, and position your business strategically while the policy environment remains stable.
If you would like to receive it directly, contact our team today.
