A balancing act of relief and responsibility

THE 2026 Budget speech, delivered by Finance Minister Enoch Godongwana last week, comes at a rare moment of cautious optimism for South Africa.

- JENNIFER REDDY

THE new Budget encourages a culture of saving, says the writer.

(Meta AI)

After years of fiscal “belt-tightening” and the looming threat of a VAT increase in previous Budgets, the 2026 Budget represents a “holding pattern” that prioritises stability over shock.

Perhaps, at last, we are poised to witness a focus on growth, and an expansion of support for smalland medium-sized enterprises (SMEs). Is this our new “wings of change”?

For the ordinary South African — whether an office worker in uMhlanga or a grandmother in a rural village - the Budget is not merely a collection of macroeconomic figures; it serves as a direct roadmap for their cost of living over the next year.

Here is a breakdown of how the 2026 Budget impacts the financial well-being and daily lives of South African citizens.

In 2026, middle-class and salaried workers benefit from the cancellation of a proposed R20 billion tax increase, which provides direct tax relief and financial breathing room.

The government has adjusted personal income tax brackets and medical tax credits for inflation, which is set at 3,4%.

This adjustment addresses the issue of “bracket creep”, where nominal salary increases meant to keep up with inflation inadvertently push workers into higher tax brackets, reducing take-home pay.

Many middle-class individuals faced this situation in previous years.

For the 2026/27 tax year, individuals earning under R100,000 per year (about R8,333 per month) will pay no income tax.