Latest news with #R5
The South African
a day ago
- Business
- The South African
GOOD news for retiring South African expats in 2025
The two-pot savings scheme offers retiring South African expats one big advantage over regular citizens. Retiring South African expats are able to access their two-pot savings immediately, thereby sidestepping the three-year lock-in rule. As we've already reported, ever since the two-pot retirement system was introduced back in September 2024, fund member have withdrawn billions in funds. This is despite financial advisors decrying the long-term effects of saving efficacy. The scheme allows members to make one withdrawal from their savings pot every single year. Many are making lumpsum withdrawals to simply make ends meet or pay off debts. Which are clear signs of financial strain … Many retirees have worked their entire lives to live somewhere exotic like Mauritius when the turn 60. Image: File Nevertheless, retiring South African expats are not subject to the same restrictive three-year lock-in rules that govern the savings portion of regular residents. Expats who have formally ceased tax residency can access their retirement savings without delay. As such, the Retirement Matters Committee of the Actuarial Society of South Africa (ASSA) reports that 75% of applications in Q2 of 2025 were repeat claims. Up until February 2025, 2.6-million South Africans accessed part of their retirement savings. Therefore, it's plain to see that retiring South African expats are eager to obtain cash as soon as possible after ceasing tax residency. Furthermore, the South African Revenue Service (SARS) says R47 billion has paid to fund members since the scheme's start on 1 September 2024. In turn, this yielded R12 billion in tax revenue for the government. Surprisingly, this is more than double the R5 billion initially projected by the National Treasury when it introduced the scheme. However, something retiring South African expats should remember is their withdrawals – while not time limited – are not tax exempt. In fact, administrative withdrawal fees, and cross-border transfer regulations can make such transactions more costly. SARS insists that 'tax liability remains even after severing ties with the country.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
2 days ago
- Business
- The Citizen
Household food basket shows food prices still increasing
While interest rates and fuel prices, as well as inflation, are lower, the picture for low-income consumers has not changed. The price of the household food basket for May shows that food prices for low-income consumers are still increasing despite the inflation rate slowing down. This means that low-income consumers can afford even less nutritious food. The household food basket is part of the Household Affordability Index compiled by the Pietermaritzburg Economic Justice and Dignity Group with the help of women who live in low-income communities where they shop at 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba in Northern KwaZulu-Natal and Springbok in the Northern Cape. The average price of the household food basket, which contains 44 food items, was R5 466.59 in May and cost R46,29 (0.9%) more than in April and R136.29 (2.6%) more than in May 2024. A total of 33 of the food items cost more than a month ago, while the prices of the other 11 items deceased. Foods in the basket which increased in price in May 2025 by 5% or more, include: potatoes (7%), onions (23%), tea (5%), chicken feet (6%), carrots (8%), butternut (9%), spinach (5%), and peanut butter (5%). Food items that cost more were samp (2%), salt (2%), frozen chicken portions (2%), soup (2%), Maas (4%), beef liver (3%), beef (4%), wors (3%), fish (2%), cabbage (2%), Cremora (3%), bananas (2%), apples (2%), margarine (3%), polony (3%) and apricot jam (2%). The food items in the basket which decreased in price in May include rice (-5%), tomatoes (-9%), oranges (-23%), white sugar (-2%), full cream milk (-2%), green pepper (-2%) and tinned pilchards (-2%). ALSO READ: Steep increase in price of household food basket means more people will go hungry Household food basket cost more everywhere except in Springbok The average total price of the household food basket increased in Johannesburg (by R51), Durban (by R2.64), Cape Town (by R112.62), Pietermaritzburg (by R6.33) and Mtubatuba (by R87.51), while the price decreased in Springbok. The food basket decreased in price by R28.90. Statistics SA's latest Consumer Price Index for April 2025 shows that headline inflation was 2.8%, while food inflation was 3.3%, and the producer price index for March shows agriculture was at 2.4%. However, despite the lower inflation, low-income consumers are still struggling to afford enough food for their families. Workers who earn the National Minimum Wage of R28.79 per hour or R230.32 for an 8-hour day. In May, with 21 working days, the maximum wage for a general worker was R4 836.72. Black South African workers usually support four people on one wage, which means that, dispersed in a worker's family of four, the wage comes to R1 209.18 per person, far below the upper-bound poverty line of R1 634 per person per month. ALSO READ: Household food basket: prices drop, but not for core staple foods Low-income consumers cannot afford household food basket The average cost of a basic nutritional food basket for a family of four was R3 843.40 in May. Using Pietermaritzburg-based figures for electricity and transport and the average figure for a minimum nutritional basket of food for a family of four, the group calculates that electricity and transport (R2 722.97) take up 56.3% of a worker's wage. Mervyn Abrahams, programme coordinator for the group, points out that workers only buy food after setting aside money for transport and electricity, leaving R2 113.75 for food and everything else. 'This means that in May we calculate that workers' families underspent on food by a minimum of 45.0%, having R2 113.75 left over after paying for transport and electricity. And with food for the month costing R3 843.40, there is no possibility of a worker being able to afford enough nutritious food for her family. 'If she uses the entire R2 113.75 to buy food, it will provide R528.44 per person per month for a family of four, again far below the food poverty line of R796.' ALSO READ: Consumer Goods Council calls for urgent expansion of zero-rated foods No money for nutritious food for children in household food basket He says women and children are particularly vulnerable. In May, the average cost to feed a child a basic, nutritious diet was R979.66, with an increase of R6.41 (0.7%) from April and R25.07 (2.6%) compared to a year ago. In May, the Child Support Grant of R560 was 30% below the Food Poverty Line of R796 and 43% below the average cost to feed a child a basic, nutritious diet of R979.66. It is clear that there is simply no money to feed children in low-income communities a proper, nutritious diet.
Eyewitness News
2 days ago
- Business
- Eyewitness News
Expanding list of tax-free food items won't benefit poorer households: Treasury
CAPE TOWN - The Treasury doesn't believe that expanding the basket of tax-free food items will have the desired effect of lowering living costs for poorer households. It said that past experience has shown it would benefit retailers instead. Along with retracting a proposed value-added tax (VAT) increase in the third version of this year's national budget, Finance Minister Enoch Godongwana announced last week that the Treasury would also no longer be adding more items to the essential list of 21. During public hearings on the budget this week, the South African Poultry Association and dairy manufacturer, Clover SA, appealed to Parliament for chicken and dairy liquid blends to be zero-rated to ward off malnutrition, and to offset the impact of the impending fuel levy increase next week. ALSO READ: But Treasury's taxation head, Chris Axelson, said on Friday that zero-rating was viewed as a "blunt instrument". He said that when the basket was last expanded in 2019, retailers only dropped prices between seven and eight percent and not by the standard VAT rate of 15%. "So the R5 billion that government is losing, about half of that is going to lower-income households, and the benefit of lower prices, and the other half is going either to retailers or the distributors." Axelson said that Treasury believes the current list of zero-rated items was well-targeted to spare poorer households. "If there is no VAT rate increase, we don't believe it is the best course of action to continue with that zero-rating." Axelson pointed out that agricultural producers stood to gain from a diesel rebate to mitigate against increased food prices as a result of the fuel levy hike.
IOL News
3 days ago
- Business
- IOL News
Bloemfontein Celtic's revival: What fans need to know
The name of Bloemfontein Celtic is one on everybody's lips these days. Siwelele, one of South Africa's most beloved clubs, who were followed by their passionate supporters everywhere they went, could soon be returning to the PSL thanks to the efforts of Bloemfontein-based businessman Eddie Modise. Recently, Bra Eddie – as he is affectionately known – acquired the naming rights for R5 million from Max Tshabalala, who owned the club when it was purchased by Shauwn Mkhize in 2021 and renamed Royal AM. Everyone knows how that story ended. Immediately after acquiring the name, Modise insisted he was not after the top-flight status of SuperSport United, as has been reported in recent weeks. Matsatsantsa had a torrid season and avoided relegation from the Betway Premiership by the skin of their teeth after earning a 1-all draw from their rescheduled game against Golden Arrows on Thursday afternoon.
Daily Maverick
3 days ago
- Automotive
- Daily Maverick
The true price of owning a car
Most prospective buyers of a vehicle tend to focus on its purchase price when figuring out if it's affordable. But there are many other factors to consider because they will inflate your monthly costs. Having recently bought a new car, I've found it quite a big adjustment getting used to a vehicle loan instalment going off my bank account after not having to pay one for eight years. That said, buying a car is about so much more than its financing. I found WesBank's recent calculations about car ownership costs incredibly helpful. These calculations look at the estimated total monthly expenses associated with owning and maintaining one of the top-selling hatchbacks locally. The data also shows how the total cost of ownership has changed over time. 'Despite the recent improvement in passenger car sales, South Africa remains a price-sensitive market,' says Lebo Gaoaketse, head of marketing and communication at WesBank. 'This means when they decide to buy a car, new or used, most buyers base their decision primarily on the purchase price. But it's important to look beyond just that and consider the total cost of ownership, which is influenced by several other factors.' Cost breakdown For a mid-range hatchback with a retail price of about R294,000, including VAT, you can expect to pay an estimated monthly instalment of R5,554.80. Cars in this price range include the Volkswagen Polo Vivo 1.4 Comfortline, Kia Picanto 1.2 EX manual, Suzuki Swift 1.2 GLX, Toyota Starlet 1.5 XS and the Fiat 500 Cult. The instalment is influenced by the interest rate linked to the vehicle financing contract, which in turn is influenced by factors such as your credit score and the loan term. It's important to note that the interest rate will vary between customers, depending on their credit profile. Insurance options If you're financing your car through a bank, insurance is compulsory before you drive it off the showroom floor. But even if your vehicle is not financed, insurance protects you against losses that might result from an accident or theft. Insurance premiums vary depending on factors such as the make and model of the car, as well as the driver's history and location. For the model in question, a comprehensive insurance premium of R1,827.24 monthly can be expected. It's worth noting that even if you have comprehensive insurance, the amount you owe the bank includes interest and is usually significantly more than the value of the car, especially in the first four years of ownership. Credit shortfall insurance is a valuable add-on to your policy. I made a point of letting my family know that I had taken this option in case I end up dying in a car accident, because I wouldn't want them stressing about the debt. Nor would I want to be stuck paying off the debt if my car is written off. Fuel costs Fuel is one of the largest recurring expenses for car owners. Gaoaketse recommends that you estimate your monthly fuel costs, determine your car's fuel consumption rate and the distance you travel each month. The average monthly fuel costs for the vehicle in this scenario are R3,902.50. This is where your choice of car can make a massive difference. Although I didn't have a car instalment previously, I was forking out between R4,000 and R6,000 a month on fuel – the 'perk' of living two hours away from the city. Swapping my gas-guzzling SUV for a hybrid car has been an absolute game-changer, and the difference at the fuel pumps still astounds me two months later. Continuing maintenance Routine maintenance is important to ensure the safe and reliable operation of your vehicle. In the WesBank example, you could expect to pay in the region of R475.75 per month, or R5,709 annually, for running costs, including routine maintenance and general upkeep. Total monthly mobility costs When combining the monthly instalment, fuel, insurance and running costs, the total monthly cost for one of the bestselling hatchbacks in South Africa comes to R11,760.29 – marginally higher than the average total cost of ownership in 2024, which was R11,578.70 per month. Historical data Reviewing historical data, the increase in the total cost of vehicle ownership becomes apparent. For instance, because of vehicle price inflation, the estimated monthly instalment for the study model has jumped from R2,417.03 in 2012 to R5,554.80 in 2025. Insurance premiums have increased from R802.66 to R1,827.24 over the same period, and fuel costs have ballooned from R1,856.75 to about R3,902.50 per month. 'Viewing the cost of vehicle ownership from this perspective is important and underscores the need to objectively and honestly evaluate one's affordability level before signing a long-term vehicle finance contract to ensure a fulfilling vehicle ownership experience,' says Gaoaketse. DM PS the numbers in this story were hypothetical and not what Neesa Moodley is paying for her car.
