The Budget Speech 2014, by Finance Minister Pravine Gordhan, was presented under easing global economic pressure, but on the back of a weakening Rand due to the dollar strengthening in the global recovery. South Africa have shown some economic stability and resilience over the last five years of global economic crisis.
The current administration has prepared the National Development Plan (NDP) for implementation by the next government administration. Timed to perfection with the upcoming elections. Promising that the implementation of the NDP over the next five years will provide economic stability, job creation, capital and infrastructural development that will benefit all in the 20 year old democratic South Africa. This sounds like a submission of a curriculum vitae (CV), by a 20 year old, to apply for the job for the next five years. Will they be successful in their application?
Job Creation and Economic Transformation
6 million jobs were created by government in the last 5 years. To meet the job creation requirement, Mr Gordhan is asking for a "Vision and strategy shared by leaders and the people" between the public and the private sector. "A vision founded on realism and evidence. It is time for action and implementation."
Business Growth
Business' need to look at expanding operations and starting new ventures. Growth is needed in Manufacturing to stimulate the economy and employment. Incentives of R10.3 billion over the next 3 years are on the table for these expansions. Business owners need to make use of these for real development. With the weak Rand, exports are attractive. Entrepreneurs need to be creative and adventurous to take the raw materials in South Africa and manufacture them into useful products. South Africa has a good reputation for quality. Hopefully new developments will maintain these standards. Make use of the incentives. Give us a shout if you need help with the business proposals and business plans.
Small Business Corporation (SBC) Tax changes
The lower SBC bracket has increased to R70,700. The next bracket is unchanged at an upper limit of R365,000. The brackets had very minor changes. This is very disappointing as it has not taken into account inflation increases.
Taxable Income (R) Rate of Tax (R)
0 to 70 700 0% of taxable income
70 701 to 365 000 7% of taxable income above 70 700
365 001 to 550 000 20 601 + 21% of taxable income above 365 000
550 001 and above 59 451 + 28% of the amount above 550 000
Employment tax incentives have been introduced for new employees below the age of 29 years. This PAYE rebate system was implemented a few months prior to the budget speech.
Turnover Tax
Turnover tax has seen no changes to the tax brackets
Individuals Tax
There is tax relief for individuals, particularly in the lower income brackets for taxpayers. A useful proposal to keep an eye on is that tax-free lump sum benefits will increase to R500,000.
Taxable Income (R) Rate of Tax (R)
0 to 174 550 18% of taxable income
174 551 to 272 700 31 419 + 25% of taxable income above 174 550
272 701 to 377 450 55 957 + 30% of taxable income above 272 700
377 451 to 528 000 87 382 + 35% of taxable income above 377 450
528 001 to 673 100 140 074 + 38% of taxable income above 528 000
673 101 and above 195 212 + 40% of taxable income above 673 100
Rebates
Primary R12 726
Secondary (Persons 65 and older) R7 110
Tertiary (Persons 75 and older) R2 367
Age Tax Threshold
Below age 65 R70 700
Age 65 to below 75 R110 200
Age 75 and over R123 350
Conclusion
Government is dependent on the private sector to create the jobs in South Africa. Capital Growth has been highlighted as a important for future job security. Make use of the incentives and weak Rand to develop your export markets.
Shared from the Business Soul Accounting Blog.
Poor attendances on Tuesday and Thursday last week, presumably because of the very hot weather, were off-set by a turnout of forty-six players on Saturday. We played the first of our new Lindsay's competitions and the winners were John Pattrick, Neil Tainton, Margie Seale and Jenny Hammond who gained a critical half a point on one end when two opposing bowls came to rest on the jack. Sincere thanks to
Fuchsias, in particular, are plants that prefer the cooler weather and have taken a beating in this heat.
Well done and congratulations to Kudu House on winning the overall trophy at the Inter-House Gala on Friday, 21 February. Thank you to all who were involved in making this such a successful and memorable event.
Grace College Grade 11 pupils, Rachael Webster and Megan Davidovics were awarded Half Colours for doing over 100 hours of Community Service each in 2013. Rachael completed 172,5 hours working with Aids Orphans and helping with Junior Youth at Church amongst others. Megan worked at the Elephant Sanctuary and completed 152 hours in total. This is such a well-deserved award for both and Grace commends them on their outstanding efforts.
Lister & Lister provided prizes on Tuesday. Winners were Jean Pluke, John Bayley, Richard Lister and Andy Hitchcock. On Thursday we were washed out shortly after tea. Friday saw us playing the second monthly Investment Facilitators competition. A team of visitors under the guidance of Barry Earnshaw took the top honours, while Thelma and Mike Mylne with Dave Stevenson at lead won the second prize.
Elgé has just joined the team at
The
Greg Perrett first completed LEAP Challenge over 9 days, solo and unsupported, in May 2012. He attempted the Comrades Marathon the following day, but only managed to do 45km of the 89km event. He then decided to open the event to the public, as a mountain bike ride from Cape Town to Pietermaritzburg over 11 days.
To celebrate the day of love, Capulum students and staff baked hundreds of delicious cupcakes. These were sold to surrounding businesses and fellow students on Valentines day! The funds raised have been donated to CHOC (Childhood Cancer Foundation South Africa) as a token of our support. Thank you to all who helped and to the Hilton businesses who supported us. We appreciate you!
Buy ONE and get one FREE means half price cruising for you and a partner or friend!
Now is your chance to experience the fantastic cuisine and exquisite ambience of
Hilton College celebrate their most recent Springboks, Protea Hockey players Nick Spooner and Tim Drummond.
The name Sh'Zen means natural in Japanese and reflects our philosophy and simple approach to beauty. We carefully select essential oils and plant extracts to formulate therapeutic blends that promote harmony for not only the skin and body, but for the mind and spirit as well.