SA Fiscal - Budget Comment from BetterBond
The balance that Finance Minister Nhlanhla Nene and the National Treasury were able to achieve in the Budget delivered today is heartening, given the current serious constraints on the SA economy, says Shaun Rademeyer, CEO of BetterBond Home Loans, SA’s leading mortgage originator.
“There are obviously some negatives, such as the 80,5c/litre increase in the fuel levy and Road Accident Fund levy, and the 1 percentage point increase in the tax rate for those earning more than R182 000 a year.
“However, we think these are more than compensated for by the positives in the Budget, including the tax relief proposed for small businesses, farmers and those who invest in “green” energy alternatives, as well as the clear focus on the departments and projects that will create jobs, which is the country’s number one priority.
“We also welcome the renewed determination to cut wastage and corruption in the public service, and the large Budget allocations and re-directions to address our infrastructure problems, urban decay, faltering health system and education insufficiencies.”
But the biggest stimulus for the real estate market, he says, will of course be the upward shift in the transfer duty threshold, from R600 000 currently to R750 000. “This means that homebuyers will not have to pay any tax on second-hand properties that cost less than R750 000, and that will enable many more first-time buyers to get on to the property ladder, with positive consequences for the market as a whole.”