Budget 2026: key measures to support South African tenants and homeowners amid rising costs

A positive signal is sent to the residential property market by any improvement in disposable income. For theresidential property market, any improvement in household cash flow is significant. Increased disposable income enhances affordability, supports buyer confidence and strengthens the ability of first-time purchasers to enter the market, says Dr Andrew Golding, chief executive of the Pam Golding Property group.

Equally importantly, it also delivers meaningful tax relief to consumers, it says. “The tax relief measures announced provide welcome support to consumers at a time of sustained cost pressures. “Adjustments to personal income tax brackets and rebates to counter bracket creep, together with higher tax-free savings and retirement contribution thresholds, will help protect disposable income and encourage greater long-term financial resilience.” In an environment where interest rate stability and competitive lending conditions are already underpinning activity, Golding says these measures provide an additional tailwind.

The National Treasury announced the adjustment of personal income tax brackets and rebates to account for bracket creep, together with the increase in the annual tax-free investment limit from R36 000 to R46 000, which provides welcome relief to households. The raising of the tax-deductible retirement fund contribution cap from R350 000 to R430 000 per annum further incentivises long-term savings and financial planning, Golding says. The compulsory R1 million VAT registration threshold had not been adjusted since 2009. After 17 years of inflation and economic changes, many small businesses are pulled into the VAT net long before reaching a sustainable scale.