The Minister of Finance presented the 2023 budget to parliament on 22 February 2023. He indicated that revenue collection remained strong in the past year and the medium-term outlook has improved slightly. The 2023 Budget includes several tax proposals designed to support businesses and individuals with the higher cost of living and promote private investments in renewable energy.
The most notable proposal for retirement funds is the adjustment of the lump sum retirement tax tables.
Some of the other pertinent aspects relating to employee benefits include the following:
- Update on the two-pot system proposals
- Update on the Governance of Umbrella Funds paper
- Transfers between retirement funds by members who are 55 years or older
- Update on auto-enrolment
- Update on the Conduct of Financial Institutions (COFI) Bill
- Update on transformation and financial inclusion
- Update on unclaimed assets
- Money laundering efforts to avoid grey-listing
- Medical tax credits will increase
The state old age grant will be increased to R2 090 per month