2026 Budget Speech (RSA) - Small Business Focus

South Africa’s 2026 national budget lands at a critical moment for small businesses. While government celebrates stabilizing debt, improved credit ratings, and better revenue collection, the real question for founders is this: 

How does this budget affect me — personally and as a business owner? 

UniBlack Consulting exists to help founders build structure and take control. So here is a clear, founder-friendly breakdown of the 2026 budget: 

• How it affects YOU personally 

• How it affects your BUSINESS 

• What practical steps to take for the 2026/27 tax year 

1. How the 2026 Budget Affects You Personally 

Positive Impacts 

1. Inflation-adjusted tax brackets 

Government has adjusted personal income tax brackets and rebates fully in line with inflation. 

What this means for you: 

• Your salary will be taxed slightly less. 

• You keep a bit more take‑home pay — especially useful if you pay yourself via salary from your business. 

2. Higher tax‑free savings limits 

To encourage household saving: 

• Tax‑free investment limit increases from R36 000 → R46 000 per year 

• Retirement fund contribution limit increases from R350 000 → R430 000 

Why founders should care: 

Many founders neglect personal wealth while building the business. These increases give you room to grow long‑term wealth tax efficiently. 

3. Continued social support for dependents 

Grants are increasing: old age, disability, foster care, child support. If you support family members who receive grants, their rising incomes reduce pressure on your own finances. 

Negative Personal Impacts 

1. Higher sin taxes and fuel levies 

Alcohol, tobacco and fuel levies increase in line with inflation. For founders who commute, travel to clients or run vehicle-dependent businesses, fuel increases will bite. 

2. Higher cost of living pressures remain 

While the budget protects households, slow growth and high inflation still squeeze disposable income. 

2. How the 2026 Budget Affects Your Business 

A. Positive Impacts 

1. Large win for small businesses: Higher VAT registration threshold 

This is a major shift: 

VAT compulsory registration threshold increases from R1 million → R2.3 million 

Why this matters: 

• Start-ups have more room to grow before being forced to charge VAT. 

• This improves cash flow and reduces administrative burden. 

• Helps businesses serving low‑income consumers (who cannot claim VAT back). 

This is one of the biggest direct pro‑SMME reforms in years. 

2. Higher capital gains tax exemptions for older entrepreneurs selling a business 

• Exemption increases from R1.8m → R2.7m 

• Applies to businesses worth up to R15m (previously R10m) 

If you’re nearing exit or planning succession, the tax relief is significant. 

3. Stronger infrastructure investment (over R1 trillion) 

More reliable logistics, energy and water systems benefit all businesses. While improvements will take time, sustained investment supports long-term competitiveness. 

Key improvements include: 

• Rail and port upgrades 

• Electricity supply stability 

• Bulk water projects 

• Local government reforms to fix essential services like water and electricity 

4. No new general tax increases for businesses 

The previously planned R20bn tax increases have been cancelled. 

5. Support for digital payments and fintech growth 

Through the new Payments Utility (PayInc), digital payments infrastructure becomes cheaper and more interoperable — good for SMMEs adopting modern payment systems. 

B. Negative Impacts for Businesses 

1. Fuel levy increases 

Transport-intensive industries will feel these additional costs: 

• 9c/litre general fuel levy for petrol 

• 8c/litre for diesel 

• Carbon levy increases 

• RAF levy increases 

2. Local government dysfunction may still affect you 

Even with reforms, many municipalities remain in distress. Expect: 

• inconsistent water supply 

• electricity interruptions 

• delays in municipal approvals 

3. Excise increases affect hospitality, manufacturing and logistics 

• Alcohol & tobacco taxes increase (affecting bars, restaurants, wholesalers) 

4. Compliance monitoring will tighten 

With illegal trade cracking down and improved SARS data systems, expect: 

• more audits 

• better digital tracking 

• stricter enforcement 

Businesses with weak compliance or missing documents are at risk. 

3. Practical Guidelines for Founders to Plan for the 2026/27 Tax Year 

Below is a UniBlack Consulting–style, practical roadmap. 

A. Strengthen Your Business Structure and Compliance 

1. Update your VAT strategy 

• If your turnover is below R2.3m, reconsider whether voluntary VAT registration is still needed. 

• If above the threshold, plan your pricing to account for VAT obligations early. 

2. Strengthen bookkeeping and monthly reporting 

SARS is tightening enforcement. Ensure you have: 

• monthly bank reconciliations 

• proper invoicing systems 

• recorded supplier invoices 

• digital backups 

As you prefer structured checklists, we can generate a 2026 compliance checklist on request. 

B. Adjust Your Pricing for Fuel & Input Cost Increases 

With fuel levies rising, inflationary pressures will continue. 

• Review delivery fees 

• Adjust service pricing based on cost models 

• Introduce minimum order quantities where applicable 

C. Leverage the New Personal Savings Limits 

Founders often reinvest everything back into the business. Use the increased limits to protect your personal financial future: 

• Auto‑debit R3,500–R4,000 into a Tax‑Free Savings Account monthly 

• Increase retirement fund contributions (especially if you pay yourself via payroll in your company) 

D. Prepare for Data and Digital Payments Requirements 

Government is emphasizing digital transformation: 

• Upgrade payment systems 

• Modernize your website/e‑commerce tools 

• Adopt systems compatible with PayInc and modern banking APIs 

4. What This Budget Means for Small Business Founders Overall 

In simple terms: 

The 2026 budget is generally GOOD for small businesses: 

• No major tax increases 

• Higher VAT threshold 

• Increased savings incentives 

• Infrastructure investment 

• More efficient public spending 

But founders must still plan for: 

• Higher fuel costs 

• Tough municipal environments 

• Stricter SARS compliance 

• Slower economic growth (1.6% forecast) 

5. Final Word for Founders 

South Africa’s small business sector remains vulnerable but filled with opportunity. This budget gives founders breathing room — but not relief from the need for structure, discipline, and data‑driven decision-making. 

If you take advantage of the incentives, prepare early for compliance, and actively manage rising costs, your business can grow despite a slow economy. 

Have any questions about how the Budget impacts your business? Drop them in the comments or inbox us — we’re here to help founders gain control and build real structure.