Budget Speech 2022 Grants

budget speech 2022 grant increase|budget speech 2022 south africa summary|budget speech 2022 south africa pdf|budget speech 2022 on social grant:Social grant recipients will heave sighs of relief at the announcement that allocations will from April mostly increase by above inflation rates.This is a reprieve from the 2021 Budget rates of between 1% and 3.4%.Delivering the 2022 Budget Speech in Parliament on Wednesday, finance minister Enoch Godongwana said the Department of Social Development will receive the largest allocation of R58.6 billion over the medium term.

“First, to initiate a new extended child support grant for double orphans. This is to encourage the care of orphans within families rather than foster care. Second, to provide for inflationary increases to permanent social grants.”From April, old age and disability grants will increase to R1,985 from R1,890 (5%). In the same period, grants for persons over the age of 75 and war veterans will rise to R2,005 from the current R1,910 (5%).

Budget Speech 2022 South Africa Grants

Also with a 5% increase, care dependency will rise from R1,890 to R1,985 (5%). With a 1.9% increment, the foster care grant will see the lowest adjustment, rising from the current R1,050 to R1,070 (1.9%).With a 5% increase, care dependency will go from R1,890 to R1,985 (5%). Child support will increase to R480 from the current R460 (4.3%).

The Minister said the social grants function is allocated R1 trillion over the MTEF period to facilitate access to social grants and welfare services to reduce poverty and inequality, protect children, and empower women, youth and people with disabilities.

Three new allocations are made to social grants, including:budget speech 2022 on social grant

  • R44 billion in 2022/23 to continue the special Covid-19 social relief of distress grant (R350 per beneficiary) for another 12 months.
  • A total of R1.6 billion in the two outer years to initiate a new extended child support grant for double orphans, in order to encourage the care of orphans within families rather than foster care.
  • A total of R13.1 billion in the outer years to offset budget reductions made in the 2021 Budget and provide for inflationary increases to permanent grants.

In the 2022 Budget Review, the National Treasury said the total number of grant beneficiaries will increase by an average annual rate of 1.5%, from 18.4 million in 2021/22 to 19.2 million in 2024/25.

The department said the numbers exclude the 10.5 million beneficiaries of the special COVID‐19 social relief of distress grant in 2022/23.

“Following the once-off allocation of that grant in 2022/23, the function’s baseline will contract by 3% over the period ahead. Over the medium term, conditions for extending this or a similar grant will include improved targeting to ensure that the people who most need this grant can access it, as well as improved linkages with labour market activation programmes.

“The child support and old age grants together account for more than half of total grant expenditure over the MTEF period. These grants will support a total of 17.2 million beneficiaries in 2022/23,” reads the document.

The Budget Review said over the three-year spending period, an annual average of R1.2 billion will be shifted from the Department of Social Development to the Department of Basic Education as responsibility for early childhood development shifts across these departments.

The National Youth Development Agency will receive R1.5 billion to support skills development and youth employment.

budget speech 2022 south africa summary

Specific excise duties on alcoholic beverages and tobacco products generally increase by between 4.5% and 6.5%, apart from traditional African beer, with no increase.  The key specific excise duty increases can be summarised as follows:

ProductOld rateNew rate
Malt beerZAR 115.08 / litre of absolute alcohol (196,86c / average 340ml can)ZAR 121.41 / litre of absolute alcohol (196,97c / average 340ml can)
Traditional African beer7,82c / litre7,82c / litre
Traditional African beer powder34,70c / kg34,70c / kg
Unfortified wineZAR 4.74 / litreZAR 4.96 / litre
Sparkling wineZAR 15.51 / litreZAR 16.52 / litre
Ciders and alcoholic fruit beveragesZAR 115.08 / litre of absolute alcohol (196,86c / average 340ml can)ZAR 121.41 / litre of absolute alcohol (196,97c / average 340ml can)
SpiritsZAR 230.18 / litre of absolute alcohol(ZAR 74.23 / 750mlbottle)ZAR 245.15 / litre of absolute alcohol(ZAR 79.06 / 750mlbottle)
CigarettesZAR 18.78 / 20 cigarettesZAR 19.82 / 20 cigarettes
Tobacco products in ‘sticks’ZAR 7.05 per 10 sticks(ZAR 14.10 per 20 sticks)ZAR 7.43 /10 sticks(ZAR 14.86 per 20 sticks)
Cigarette tobaccoZAR 21.12 / 50gZAR 22.28 / 50g
Pipe tobaccoZAR 6.26 / 25gZAR 6.63 / 25g
CigarsZAR 104.16 / 23gZAR 110.93 / 23g

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SUMMARY OF TAX RATES

Companies: Financial years ending on any date between 1 April 2022 and 31 March 2023

TypeRates of Tax
Corporate Tax28%

Companies: Financial years commencing on or after 31 March 2023

TypeRate of Tax
Corporate Tax27%

Small Business Corporations: Financial years ending on any date between 1 April 2022 and 31 March 2023

Taxable Income (ZAR)Rates of Tax (ZAR)
1 – 91 2500% of taxable income
91 251 – 365 0007% of taxable income above 91 251
365 001 – 550 00019 163 + 21% of taxable income above 365 000
550 001 and above58 013 + 28% of taxable income above 550 000

Turnover Tax for Micro Businesses: Financial years ending on any date between 1 March 2022 and 28 February 2023

Taxable Income (ZAR)Rate of Tax (ZAR)
1 – 335 0000% of taxable income
335 001 – 500 0001% of taxable income above 335 000
500 001 – 750 0001 650 + 2% of taxable income above 500 000
750 001 and above6 650 + 3% of taxable income above 750 000

Value Added Tax (VAT) 

Rates

Rate CategoryRate of Tax
Standard rate (most local supplies of goods or services)15%
Zero rate (direct export and certain specific supplies of goods or services)0%
Standard rate (non-resident suppliers of electronic services)15%

Registration Threshold

Registration RequirementThreshold (ZAR)
Compulsory: taxable supplies exceed in any consecutive 12 months1 000 000
Voluntary: taxable supplies exceed in any consecutive 12 months50 000

Individuals and Trusts: Period 1 March 2022 to 28 February 2023

Individuals and special trusts

Taxable Income (ZAR)Rates of Tax (ZAR)
1 – 226 00018% of taxable income
226 001 – 353 10040 680 + 26% of taxable income above 226 000
353 101 – 488 70073 726  + 31% of taxable income above 353 100
488 701 – 641 400115 762 + 36% of taxable income above 488 700
641 401 – 817 600170 734 + 39% of taxable income above 641 400
817 601 – 1 731 600239 452 + 41% of taxable income above 817 600
1 731 601 and above614 192 + 45% of taxable income above 1 731 600

Trusts other than special trusts

TypeRate of Tax
Trusts45%

Rebates

TypeAmount (ZAR)
Primary16 425
Secondary (persons 65 and older)9 000
Tertiary (persons 75 and older)2 997

Tax Threshold

AgeThreshold (ZAR)
Below age 6591 250
Age 65 to 75141 250
Age 75 and older157 900

Medical scheme fees tax credit

Persons covered by a medical aid schemeTax Rebate (ZAR) per month
For the first two individuals347
For each additional dependent234

Transfer Duty: Applicable where sale of property is not subject to VAT

Taxable Income (ZAR)Rates of Tax (ZAR)
1 – 1 000 0000%
1 000 001 – 1 375 0003% of the value above 1 000 000
1 375 001 – 1 925 00011 250 + 6% of the value above 1 375 000
1 925 001 – 2 475 00044 250 + 8% of the value above 1 925 000
2 475 001 – 11 000 00088 250 + 11% of the value above 2 475 000
11 000 001 and above1 026 000 + 13% of the value above 11 000 000

Estate Duty: Levied on the dutiable value of an estate

Value of Estate (ZAR)Rate of Tax
1- 30 000 00020%
30 000 000 and above25%

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