The first two months of 2026 have set a strong pace for the year ahead. Between compliance updates, the national budget doing its annual reshuffle, industry events, and a few long days out in the Eastern Cape sun. Here’s a snapshot of what’s been happening.

National Minimum Wage Increase – Effective 1 March 2026

The Minister of Employment and Labour announced an increase in the National Minimum Wage from R28.79 to R30.23 per hour, effective 1 March 2026. This annual adjustment applies to most workers across all sectors. Employers are encouraged to review the updated rates and ensure payroll systems and contracts are aligned to remain compliant.

Budget Speech Highlights – What It Means for You

(Grab a coffee… we’ve already read the speech)

The 2026 Budget Speech landed this month, and while it didn’t deliver any heart‑stopping surprises, it did bring a handful of changes worth noting – especially for business owners, taxpayers, and anyone who enjoys keeping more of their own money.

VAT Changes – Breathing Room for Growing Businesses

Good news for small and growing businesses:

Effective 1 April 2026, the VAT registration threshold increased from R1 million to R2.3 million
Voluntary VAT registration increased from R50,000 to R120,000

Translation: more flexibility, less pressure to register too soon, and a little extra admin breathing space.

Capital Gains Tax – Small Business & Individuals

The CGT exemption on disposal of a qualifying small business increases to R2.7m, with the qualifying business value cap increasing to R15m
Annual CGT exclusion increased from R40,000 to R50,000
Primary residence CGT exclusion increased from R2 million to R3 million
CGT exclusion on death increased from R300,000 to R440,000

Not thrilling dinner‑table conversation – but meaningful when planning exits, estates, or property sales.

Personal Income Tax – No Rate Changes (Thankfully)

Income tax rates remain unchanged, with brackets adjusted for inflation to prevent bracket creep.
In short: you won’t suddenly be paying more tax just because inflation exists (small wins count).

Medical Aid Tax Credits

Medical aid tax credits were increased to:

R376 for the taxpayer and first dependant
R254 for each additional dependant

A modest increase, but every bit helps when medical costs seem to rise faster than everything else.

Travel & Subsistence Allowances

Subsistence allowance:
- Meals & incidental costs: R595 per day
- Incidental costs only: R184 per day
Reimbursive travel rate:
- Up to R4.95 per kilometre, with no tax payable.

(Provided no other vehicle allowance is received, excluding tolls and parking)

Corporate Tax & Investments

Corporate income tax remains unchanged at 27%
Tax‑free savings annual limit increased from R36,000 to R46,000
Retirement fund deduction cap increased from R350,000 to R430,000
Donations tax exemption increased from R100,000 to R150,000
Dividends tax remains unchanged at 20%

Fuel Levies & Sin Taxes – The Inevitable

From 1 April 2026:

Fuel levies increase across petrol and diesel
RAF and carbon fuel levies also increase
Excise duties on alcohol and tobacco rise in line with inflation

No surprises here – just fewer reasons to take the long route.

Offshore Investment Flexibility

The Single Discretionary Allowance (SDA)doubled from R1 million to R2 million, giving individuals greater flexibility for offshore investment and diversification.

Building Capability: Xero Certification

(Because smarter systems make everyone’s lives easier)

We’re proud to share that Chenee Ladwig and Lauren McKay have completed full Xero Certification. This means more streamlined accounting solutions, clearer reporting, and fewer headaches – supported by systems that actually talk to each other.

Staying Safe: Scam & Fraud Awareness

RAT Scams Explained

We shared an alert on Remote Access Trojan (RAT) scams, where fraudsters pose as banks or trusted institutions and try to gain access to your devices. The golden rule remains: If anyone asks for remote access, your PIN, or an OTP – it’s a scam.

Scam Alert: Fake SARS Emails

Fake SARS emails are still doing the rounds, often claiming legal action, outstanding amounts, or very urgent consequences. As a reminder:

SARS does not ask for passwords or banking details via email
They don’t send links demanding personal information
When in doubt, go directly to the official eFiling portal

Out & About: Industry Events & Engagement

Tourism Masterclass & Networking Expo

At the joint Tourism Masterclass & Networking Expo, ACS Academy and Pinion Human Capital showcased how our divisions work together- from skills development and training to business growth, transformation, and health & safety.
The takeaway? Strong brands don’t need to shout louder – they just need to communicate clearly.

Smaldeel Merino Sale

We braved the heat at the Smaldeel Merino Sale outside Bedford, catching up with clients, meeting new faces, and ending the day with a visit to one of the area’s newest milking setups – proof that innovation doesn’t slow down, even when the temperature climbs.

Heritage Angora Ram Sale

Our team enjoyed a sunny day at the Heritage Angora Ram Sale, combining valuable business insights, a Women in Business talk, excellent food, good wine, and some seriously impressive rams. A productive day all round.

SA Large Herds Conference 2026

We’re looking forward to attending the SA Large Herds Conference 2026, taking place from 31 May to 2 June 2026 at Zimbali in KwaZulu‑Natal. Hosted by the Milk Producers’ Organisation under the theme “The Evolution of Excellence”, it promises valuable insights, strong conversations, and a few familiar faces.

March is just around the corner, and with it comes a new set of compliance dates, submissions, and planning priorities. In this edition, we’ve shared our March 2026 compliance calendar to help you stay ahead of VAT, PAYE, and key deadlines before the month gets busy. We’ve also included an early heads‑up on important April submissions, so you can plan proactively rather than scramble later.

Disclaimer:
The information supplied herein should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact our office for specific and detailed advice. Any legal information presented is a precis of current legislation, is subject to change and should not be used as a substitute for detailed professional advice.

February 2026 Newsletter