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7/18/2019 Budget2015-2016Expectations
http://slidepdf.com/reader/full/budget2015-2016expectations 1/1
Invested:
Consolidated revenue:
Registered tax payers increased from:
Government spend:
R847 billionover the last 3 years
R658 billionin 2009/10, R32 billionless than the year before
5.9 millionat 31 March 2010
15 millionat 31 March 2014
209 000Jobs created
23 500Employers making use of Tax incentives
R899 billionin 2013/14
R282 billion(is less than 50% ofconstruction revenue)
INFRASTRUCTURE SPEND:NO MAGIC IS EXPECTED
PERSONAL INCOME TAXES:(WEALTH TAX ON THE CARDS)
VALUE-ADDED TAX (VAT):WILL 2015 BE THE YEAR OF A RATE INCREASE?
SOCIAL SECURITY:ON THE RIGHT TRACK OR COMPLETELY
MISSING OPPORTUNITIES?
1 2 3
NO INCREASE PRIOR TO:
SOCIAL INVESTMENT
INCREASED PRESSURE
Davis Tax review report
One of the highest spenders inthe world on social investment
to see the fruits of massive amounts being spenton improving:
Expenditure shows
of 2014 Budget was spendon grants and welfare services
Step-change is required,or find new markets
E X P E C
TAT I O N
S E
X P E C
TAT I O N
S
GROWTH:
No dramatic increaseCONSTRUCTION REVENUE:
No dramatic growth
JOBS CREATED:
T AX
contributed bypersonal taxes
34.4%T AX
X 3 I N
4 Y E
A R
S
Taxes paid by wealthy taxpayersCOULD SEE INCREMENTAL INCREASE:
UNCHANGED:
UNLIKELY INCREASE (DUE TO SMALL TAX BASE):
INCLUSION OF THE INFORMAL SECTOR:
Maximum marginal tax rate
Additional tax on wealthy taxpayers
Broaden tax base and generateextra revenue
Estate duty Donations Capital gains tax
T AX
South Africa’s tax rate compared to other countries:
10%Australia 15%New Zealand 16%Zambia15%Namibia14%South Africa
Unchanged for
20 Years
2015/16 Budget Expectations
5%in last 5 years
= R325.6 billion increase in funding
R144.5 billion
NATIONAL HEALTH INSURANCE:NHI SET TO BRING ABOUT REFORM, IMPROVE SERVICE PROVISION AND HEALTHCARE DELIVERY
THE WHITE PAPER:
Should increase in line with inflation
White Paper completedand tabled in cabinet shortly
MEDICAL SCHEME CONTRIBUTIONTAX CREDITS
Decrease inMedical schemes:
133 to 87over the last 9 years
Private healthcareincreasingly more expensive
Affordability impacted by• benefit s offered• contributions• tax relief
T AX
Private healthcare Beneficiariessteadily increasing from
6.6 million to
31.8%
I N C R
E A S E
Private healthcare Membersbelonging to a medical scheme
3.9 millionin 2013
2.8 million toin 2003
39.2%
I N C R
E A S E
Medical schemecontribution tax credits
6% Increase in 2013-2014(in line with inflation)
T AX Medical schemecontribution
8.9%averageincrease
Timeline for NHI
PromulgateNHI Act
Gazettethe NHI Bill
for publicconsultation
NHI law passed
FinaliseNHI Bill andpromulgate
into law
2017/182014/15 2015/16 2016/17The
WhitePaper -
yet to bereleased
10.3O
F
2 0 1 4
B U D G E
T
Grants received from government:
only 61%of schoolshave adequate sanitation
only 89% of schools haveaccess to wateron/near site
South Africa has one of the highest rates of publicinvestment in private and
public education in the world
Average percentage achievedat national level:
Could read and write at anacceptable level:
Learners living in povertyonly achieved:
Despite the high investment made:
Beneficiaries decreased(2012-2013)• due to fraud eradication• re-registration of beneficiaries
R13 072 173in 2009
23.6%Matric Certificate
5%Tertiary Education
7%of GDP
R15 932 473 in 2014
22% I N C R E A
S E
Rate increased
23.7%in 2009 25.37%in 2014
Rate compared to other countries:
5.6%United States 4.9%India25.37%South Africa 5.1%Germany5.8%United Kingdom
Facts on Grade 3 learners:
36%in 2010 50%in 2013 60%in 2014 53%Mathematics 51%Language
SOCIAL SERVICES
BENEFICIARIES
UNEMPLOYMENT
EDUCATION
E X P E C
TAT I O N
S
E X P E C
TAT I O N
S
E X P E C
TAT I O N
S
Employment tax incentive:
aimed
on grantsEducation Healthcare Less dependants
8.7 million
pointsincrease
Join the conversation #Budget2015 on 25 February 2015 or visit www.sabudgetspeech.deloitte.co.za.
