Budget Speech Summary 2026: 5 Takeaways for Small Business Owners

If you run a small business in South Africa, you don’t need a fancy economic forecast to tell you how things have felt lately. Costs creep up, customers get careful, and every admin job somehow finds a way to land on your desk at 4:30pm.

So when Finance Minister Enoch Godongwana delivered the Budget Speech on 25 February 2026, the big question for most owners was: will this make it easier to trade, to stay compliant and to keep cash flow moving?

Here’s the budget speech summary: government is giving smaller businesses more breathing room by lifting the VAT and turnover tax thresholds, it’s trying to keep the broader “public finances” story steady, but everyday cost pressure isn’t disappearing, especially when it comes to fuel and anything linked to transport and deliveries.

5 budget speech takeaways for small businesses

1) VAT threshold increases

The compulsory VAT registration threshold is increasing from R1 million to R2.3 million, effective 1 April 2026.

Here’s why that’s a real thing for small businesses:

• VAT is admin, not just tax. It changes how you invoice, how you track money, and how clean your paperwork needs to be.
• It affects cash flow. Once you’re VAT-registered, not every rand that comes in is really “yours”, some of it is being held for SARS.
• It gives growing businesses space. If you’ve been creeping up towards the old R1m mark, this gives you more room to build properly before VAT becomes compulsory.

And just to be clear, this doesn’t mean VAT is “bad”. Some businesses still register voluntarily because it suits their setup (like if you sell mostly to VAT-registered customers, or your costs include a lot of VAT-able inputs). The difference now is you can time it better instead of being rushed.

2) Turnover tax threshold increases

The turnover tax system is also being opened up to more micro businesses, with the turnover limit rising from R1 million to R2.3 million.

This matters because turnover tax is one of the simpler ways for very small businesses to stay compliant without turning tax into a full-time job. It won’t be the right fit for everyone, but for many micro businesses it means:

• less complicated tax admin while you’re still building
• less time on paperwork, more time on sales and customers
• a smoother runway from “hustle mode” to a properly set up business

What these changes really mean

These updates point to the same thing: less forced admin while you’re still growing. And for small businesses, that’s not a small win, because time and cash flow are usually the first things under pressure.

3) Small personal tax relief

Another quiet-but-important part of the budget is that the previously expected R20 billion tax increase was withdrawn, and personal income tax brackets plus medical tax credits were adjusted for inflation.

If you’re thinking, “That’s nice for salaried people, but how does it help my business?”, the link is simple: when customers get a little relief from bracket creep, they’re not squeezed quite as hard. That doesn’t mean people suddenly spend freely, but it can support everyday buying, especially for businesses that rely on repeat customers, walk-ins, appointments, and small basket spend.

4) Government’s “stability” plan

Another big theme in this budget was stability. Government wants people to see that it has a clearer plan for managing debt, controlling spending, and not just thinking about the next year, but the years after that too.

When the country feels more stable, businesses feel more confident. Banks are more willing to lend, and investors are more willing to put money into the economy. It might not mean extra cash in your pocket right now, but it’s definitely better than constant uncertainty where no one knows what’s coming next.

5) Fuel costs are still rising

It wasn’t all relief. Fuel levies are going up. The general fuel levy increases by 9c/l (petrol) and 8c/l (diesel), and there are also hikes to the RAF and carbon fuel levies.

And fuel isn’t a “transport industry problem”, it touches almost every small business like:

• your supplier’s delivery costs
• your own deliveries or call-outs
• commuting and staff transport realities
• the cost of doing anything across town, or across Durban traffic, without burning half a tank

This is usually where margins get quietly eaten, because you don’t feel it as one big knock, you feel it as lots of small increases you keep absorbing until you realise you’re working harder for the same money.

What small businesses can focus on now

You don’t need to stress about every single line in the budget. What matters is getting the basics right, especially the parts of your business that feel changes first:

• Know your numbers. If you’re growing, keep a clear eye on turnover so you’re not caught off guard by VAT decisions.
• Keep your pricing clean. If costs rise (especially fuel-linked costs), it’s better to adjust intentionally than to slowly bleed margin.
• Make it easy to get paid. When customers feel cautious, any friction loses sales. The faster and simpler the payment options, the better it is for cash flow.
• Stay compliant in a way that fits your size. The budget basically created more room to choose the right tax setup at the right time, use that space properly.

What to take from all of this

Basically, this budget doesn’t change everything, but it doesn’t make things harder either. There’s some admin relief, no major tax shocks, and a bit of support for consumers. That helps when you’re a small business owner trying to make things work.

At the same time, expenses aren’t standing still. Fuel and other operating costs are still climbing. The real opportunity here is to use the breathing room to tighten up your numbers and plan properly for what’s coming next.