The following changes will still go ahead on March 1 next year:
Fortunately, the tax-free savings vehicles will still go ahead. This means people will be able to invest up to R30 000 a year in tax-free investments. This also means no tax will be levied on interest, dividends or capital gains earned in these funds. If you want to save up to R2 500 every month, make sure the investment you select is compliant with the tax-free status.
Tax on income protection policies
At the moment, employees do not pay tax on the premiums their employers pay for disability income insurance and people get a tax deduction on premiums for income protection policies. However, if you claim on these policies, tax is levied on the income.
From next year, the tax deductions on contributions to income protection policies will no longer apply. But if you get a disability income benefit in the future, you will receive your income tax-free.
Option to postpone retirement benefits
You can defer getting your retirement benefits if you don’t need them at the normal retirement age. This will benefit people who continue to work past the normal retirement age and want to leave their retirement benefits to grow.