MEDIUM TERM BUDGET POLICY STATEMENT, 2026

MEDIUM TERM BUDGET POLICY STATEMENT, 2026

• 21 October 2026
• Parliament
• SA Legal Academy

In the context of ongoing efforts to facilitate ‘faster growth and healthier public finances’, the 2026 Medium Term Budget Policy Statement (MTBPS) underscored the relevance of several policy and legislative proposals on which SA Legal Academy Policy Watch has already reported.

Released in August 2026 for public comment, a draft ‘unclaimed financial assets centralisation framework’ now requires ‘technical work’ on the institutional, legal, and operational arrangements necessary to support the framework’s ‘phased implementation’. Draft legislative amendments are expected to be ready ‘in 2027’ for a further round of public consultation.

Regarding a November 2025 discussion paper proposing the introduction of a ‘national online gambling tax’, ‘consultations are ongoing on the proposed tax design, its linkages to the existing regulatory framework, and the implications for provinces and the currently regulated market’. ‘An announcement of the final design will be made in the February 2027 Budget’.

Input on the April 2026 draft capital flow management regulations (including the cross-border treatment of crypto assets) underscored the need for ‘a different approach’. Informed by further consultations, the regulations envisaged will move ‘away from pre-approvals’ towards assessing transactions for ‘legitimacy and tax compliance’ – guided by recommendations from the international Financial Stability Board. A revised second draft will then be prepared for a second round of public comments.

The MTBPS statement’s reference to ‘draft fiscal anchor legislation’ released for public comment ‘in October’ will be the focus of a separate SA Legal Academy Policy Watch report. At the time of writing, notices calling for input had been gazetted – but the draft Bills themselves had yet to be posted on the National Treasury website. The proposed new legislation ‘is expected to be tabled in Parliament in 2027’.

Regarding temporary relief from rising fuel prices ‘the fuel levy will be reduced by R3 per litre for diesel and R1.50 per litre for petrol from 4 November 2026 to 1 December 2026’. ‘Thereafter, … relief will continue at a lower amount until 5 January 2027’ – with a reduction in the diesel levy of R1.50 per litre and R1 per litre in the petrol levy.

On the vexed issue of the infrastructure conditional grant to provinces and municipalities, a review has revealed that – ‘while most funds are spent, projects are often delayed, incomplete or fail to deliver the intended benefits’.

As a result, the infrastructure grant system is being reformed ‘to strengthen planning, accountability and oversight’ with the aim of ensuring that funds are used ‘for their intended purpose … (on) approved projects’ that are completed – contributing towards ‘functional infrastructure and reliable services for communities’.

Related to this, a credit guarantee vehicle for mobilising private capital infrastructure investment was incorporated in August 2026 and has applied to the Prudential Authority for an insurance license. The vehicle is expected to be operational by 2027.

Against that backdrop, the National Assembly’s Standing Committee on Finance and NCOP Finance Committee have issued a joint notice calling for input by 26 October 2026 on revised fiscal framework and revenue proposals in the Medium Term Budget Policy Statement. Parliamentary hearings have been scheduled for 28 October 2026.

• MTBPS
• joint committee notice
• Taxation Laws Amendment Bill
• Tax Administration Laws Amendment Bill
• Rates & Monetary Amounts & Amendment of Revenue Laws Bill
• Division of Revenue Amendment Bill
• Adjustments Appropriation Bill
• Special Appropriation (2026/27 Financial Year) Bill
• SA Legal Academy Policy Watch report on draft ‘unclaimed financial assets centralisation framework’
• SA Legal Academy Policy Watch report on national online gambling tax discussion paper
• SA Legal Academy Policy Watch report on draft capital flow management regulations

Published by SA Legal Academy Policy Watch

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