The 2010 Budget - what you need to know

By Staff Writer

Finance minister Pravin Gordhan delivered his first national budget speech yesterday; the reviews were mixed with "balanced" and "predictable" reigning supreme.
However, Joe and Jane Soap want to know how the budget will affect them directly. Anton Gildenhuys, chief executive of Sanlam Personal Finance gave the following top 4 implications for consumers:

 

1. Inflation and interest rates
The Reserve Bank mandate remains largely unchanged, and as another interest rate cut is unlikely, consumers will have to watch their spending and not find any additional or unnecessary debt.

2. Tax reductions
While the National Treasury has slightly decreased the tax burden caused by "bracket creep" - when inflation pushes income into higher tax brackets - consumers need to take heed of the warning that taxes may increase beyond bracket creep next year. Gildenhuys advises that consumers need to think long-term by paying as much as possible on cars and homeloans this year and stick to responsible budgeting.

3. Petrol
Energy consumption is turning into the new sin tax, as it has been proposed that petrol tax should increase by 25.5 cents per litre, as well as a carbon emissions tax on new cars - this makes a good argument for buying a second hand car.
The most notable sin tax increase must be cigarettes which will increase by R1.24 per packet, followed by wine at 12 cents a bottle and 6.5 cents a beer.

4. National Health Insurance
"While the timeline for the introduction of National Health Insurance is given as five years, it may happen later." says Gildenhuys. This means that for now, consumers will have to continue to provide for their medical needs via private medical aids. Gildenhuys also ads that it will be "prudent to plan future medical expenditure based on the current healthcare dispensation." 

Recent Articles

Featured Tax free savings accounts – Which offer you the best value?

This week Justmoney compares TFSA’s across the five banks mentioned to see which bank allows for the most savings potential and which is cheaper to utilise.

Read more

Are you liable for your spouse’s debt?

Marriage may signal taking on someone’s last name, family, and even traditions. But are you signing up to be liable for your spouse’s debt too? And if your life partner is made redundant or fired, will you be responsible for your spouse’s debt?

Read more

What happens to your medical aid when you move overseas?

While exploring a different country, you may rely on the built-in travel insurance that forms part of your medical aid. However, what happens when you stay for longer than a typical vacation? This week Justmoney has a look at what you should do with your medical aid if you decide to move overseas for a period of time.

Read more

How to apply for government funding for your start-up business

Starting your own business can be challenging, especially if you don’t have the capital to get it off the ground. Fortunately, there are many ways to fund a new business in South Africa. This week Justmoney found out more about these grants, how to apply for them, and what you can do to make your business stand out from the rest.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free MBA Course

Price: Free
When: Applications close on 31 May
Where: Online

The 41 Winter Special

Price: From R170
When: Weekdays
Where: Cape Town

KFC Burger Day Special

Price: R97
When: Until 28 May
Where: Online