{"id":265134,"date":"2025-11-06T06:54:09","date_gmt":"2025-11-06T07:54:09","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=265134"},"modified":"2025-11-09T07:04:24","modified_gmt":"2025-11-09T07:04:24","slug":"experts-warn-consumers-need-relief-ahead-of-south-africas-mid-term-budget-statement","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/experts-warn-consumers-need-relief-ahead-of-south-africas-mid-term-budget-statement\/","title":{"rendered":"Experts warn consumers need relief ahead of South Africa\u2019s mid-term budget statement"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

As South Africa approached the Medium-Term Budget Policy Statement (MTBPS) on 12 November 2025, experts highlighted the mounting financial pressure on consumers, particularly regarding tax policies, inflationary adjustments, and household debt.<\/p>\n

Hayley Parry, Money Coach and Facilitator at 1Life\u2019s Truth About Money, said one of the most pressing issues for households was bracket creep.<\/p>\n

\u201cFor the last three years SARS has decided not to adjust the tax brackets and that puts enormous pressure on your salary. Even if we receive an increase linked to inflation or discretionary bonuses, it is not coming through to the bottom line because essentially we are paying more tax,\u201d she said.<\/p>\n

Parry noted that in the last financial year, SARS collected R19.5 billion in additional revenue by not adjusting tax brackets for inflation.<\/p>\n

\u201cThis is a critical thing we need to be looking at in this statement. It is an indication of whether this approach will continue next year, which has an enormous impact on South Africans and their take-home pay.\u201d<\/p>\n

Parry also pointed to limitations on tax-free savings accounts.<\/p>\n

Introduced in 2015 to encourage saving and investing, the accounts had a lifetime contribution limit of R500,000.<\/p>\n

\u201cIf that number had been adjusted for inflation it would now be approximately R821,000,\u201d Parry explained.<\/p>\n

She added that the annual contribution limit of R36,000, last adjusted in March 2020, would have grown to just over R46,000 today.<\/p>\n

\u201cThis is another example of when the government’s failure to adjust for inflation continues to impact the financial well-being of South African consumers. Many South Africans are striving to make responsible financial choices but are held back because salary brackets remain unchanged despite rising costs.\u201d<\/p>\n

Neil Roets, CEO of Debt Rescue, also expressed concern about the impact of the MTBPS on households.<\/p>\n

\u201cBehind every line item and deficit figure are real people, families who are already stretched to the limit by high prices, stagnant wages and mounting debt repayments,\u201d he said.<\/p>\n

Roets warned that even small policy shifts, such as delayed tax changes or increased borrowing, eventually affected ordinary South Africans through higher living costs and tighter credit conditions.<\/p>\n

Economists also painted a cautious picture. Annabel Bishop of Investec noted that revenue collection was lagging behind target while expenditure remained high.<\/p>\n

Frank Blackmore from KPMG expected Treasury to revise growth forecasts downward, which would make balancing the books harder and leave households unlikely to see relief in the short term.<\/p>\n

Roets emphasised that high debt levels and rising costs of living required immediate relief measures.<\/p>\n

\u201cGovernment should consider more aggressive support strategies for consumers facing financial distress,\u201d he said.<\/p>\n

The MTBPS was also expected to provide updates on structural reforms in the energy and logistics sectors, particularly those under Operation Vulindlela, which were crucial for easing economic bottlenecks and potentially lowering electricity costs.<\/p>\n

Roets added that the link to direct and sustained petrol price reduction was more complex, but improving energy infrastructure remained vital for alleviating financial stress.<\/p>\n

\u201cWhile markets may look for fiscal discipline and debt-to-GDP ratios, consumers are simply looking for breathing room,\u201d Roets said.<\/p>\n

\u201cThe mini-budget should recognise that recovery starts with households. When families are financially stable, the broader economy follows. South Africans are resilient, but they need real signs of relief. Our wish is for this mini-budget to bring more than just numbers; it must bring hope,\u201d Roets further said.<\/p>\n

BUSINESS REPORT <\/strong><\/p>","protected":false},"excerpt":{"rendered":"

As South Africa approached the Medium-Term Budget Policy Statement (MTBPS) on 12 November 2025, experts highlighted the mounting financial pressure on consumers, particularly regarding tax policies, inflationary adjustments, and household debt.Hayley Parry, Money Coach and Facilitator at 1Life\u2019s Truth About Money, said one of the most pressing issues for households was bracket creep.\u201cFor the last three years SARS has decided not to adjust the tax brackets and that puts enormous pressure on your salary. Even if we receive an increase linked to inflation or discretionary bonuses, it is not coming through to the bottom line because essentially we are paying more tax,\u201d she said.Parry noted that in the last financial year, SARS collected R19.5 billion in additional revenue by not adjusting tax brackets for inflation.\u201cThis is a critical thing we need to be looking at in this statement. It is an indication of whether this approach will continue next year, which has an enormous impact on South Africans and their take-home pay.\u201dParry also pointed to limitations on tax-free savings accounts.Introduced in 2015 to encourage saving and investing, the accounts had a lifetime contribution limit of R500,000.\u201cIf that number had been adjusted for inflation it would now be approximately R821,000,\u201d Parry explained.She added that the annual contribution limit of R36,000, last adjusted in March 2020, would have grown to just over R46,000 today.\u201cThis is another example of when the government’s failure to adjust for inflation continues to impact the financial well-being of South African consumers. Many South Africans are striving to make responsible financial choices but are held back because salary brackets remain unchanged despite rising costs.\u201dNeil Roets, CEO of Debt Rescue, also expressed concern about the impact of the MTBPS on households.\u201cBehind every line item and deficit figure are real people, families who are already stretched to the limit by high prices, stagnant wages and mounting debt repayments,\u201d he said.Roets warned that even small policy shifts, such as delayed tax changes or increased borrowing, eventually affected ordinary South Africans through higher living costs and tighter credit conditions.Economists also painted a cautious picture. Annabel Bishop of Investec noted that revenue collection was lagging behind target while expenditure remained high.Frank Blackmore from KPMG expected Treasury to revise growth forecasts downward, which would make balancing the books harder and leave households unlikely to see relief in the short term.Roets emphasised that high debt levels and rising costs of living required immediate relief measures.\u201cGovernment should consider more aggressive support strategies for consumers facing financial distress,\u201d he said.The MTBPS was also expected to provide updates on structural reforms in the energy and logistics sectors, particularly those under Operation Vulindlela, which were crucial for easing economic bottlenecks and potentially lowering electricity costs.Roets added that the link to direct and sustained petrol price reduction was more complex, but improving energy infrastructure remained vital for alleviating financial stress.\u201cWhile markets may look for fiscal discipline and debt-to-GDP ratios, consumers are simply looking for breathing room,\u201d Roets said.\u201cThe mini-budget should recognise that recovery starts with households. When families are financially stable, the broader economy follows. South Africans are resilient, but they need real signs of relief. Our wish is for this mini-budget to bring more than just numbers; it must bring hope,\u201d Roets further said.BUSINESS REPORT\u00a0<\/p>","protected":false},"author":1,"featured_media":265136,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-265134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=265134"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265134\/revisions"}],"predecessor-version":[{"id":265135,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265134\/revisions\/265135"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/265136"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=265134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=265134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=265134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}