Budget 2026: relief, restraint and a few catches

DELIVERING an upbeat National Budget on Wednesday, Finance Minister Enoch Godongwana provided much-needed relief to consumers in the form of inflation-adjusted tax brackets, higher tax-free savings limits, and expanded retirement contribution thresholds.

- NICOLA MAWSON

FINANCE Minister Enoch Godongwana delivered a National Budget that landed meaningful wins for consumers, savers and small businesses. | PARLIAMENT

Yael Geffen, CEO of Lew Geffen Sotheby's International Realty, says "this wasn’t just a budget; it was an acknowledgment that the engine of this country is its people and its businesses". Godongwana “put money back into the pockets of households at a time when they need it most,” she says.

The minister delivered a stability-focused National Budget aimed at addressing consumer pain points, says Hayley Parry, co-founder of Cumulate and head of financial education at Worth. “It avoids major tax shocks, protects social spending and nudges South Africans toward greater savings,” she adds.

Although Darren Britz, partner and head of Legal at Tax Consulting SA and Richan Schwellnus, senior tax attorney at Tax Consulting SA, say that the day itself may have lacked drama, it actually delivered a series of quietly positive tax developments.

“Rather than introducing aggressive new revenue collection measures, National Treasury opted for stability, targeted relief and structural adjustments that favour taxpayers, savers and small businesses,” they say.

Britz and Schwellnus point out that, in a year where additional tax increases of R20 billion had previously been pencilled in, the most notable policy decision was their withdrawal.

“This alone signals a meaningful improvement in fiscal confidence and a recognition that further tax pressure could have been economically counterproductive,” they say.