News & Info

VAT in Construction

Tue, 7 Apr 2026 05:00:00 GMT

In construction, VAT is dealt with on every invoice, every progress claim and every supplier payment, yet it is one of the biggest reasons contractors run into cashflow pressures. Simply put, VAT never belongs to you. It belongs to the South African Revenue Service (SARS).

Construction work comes with progress claims and retention. VAT is generally triggered when a tax invoice is issued, not when payment is received. This is where many construction companies miscalculate and end up with large VAT debt owed to SARS.

VAT Accounting Bases

There are two accounting bases for the calculating of VAT. The basis that your construction company uses, can make a big difference to your cashflow.

Invoice Basis: VAT is accounted for on the earlier of when you issue an invoice or when payment is received.
If you issue a progress claim today, you must declare and pay the VAT even if the client only pays you 90 days later. This may mean that you would need to pay SARS before you have been paid by the client.
Payment basis: Vat is accounted for when payment is received. However, there are certain qualifying criteria for this method. Generally, businesses with taxable supplies below R2.5 million per year may apply to use this basis.

If you issue a progress claim today under this basis, you must declare and pay the VAT only when the payment is received, even if the client only pays you 90 days later. This significantly eases pressure on your cash flow.

Practical Tips

Know your VAT registration basis and how it affects your cashflow.
Keep VAT in a separate account, do not spend it.
Reconcile your VAT monthly, not just at submission time.
Follow up on overdue payments immediately.

VAT in construction is more than just compliance; it is cashflow. Stay on top of it, keep it clear and accurate and avoid unnecessary cashflow stress.

Reetesh Balgobind | Head: Finance

References:

South African Revenue Service (2024) Obligations of a VAT vendor. Available at: https://www.sars.gov.za/types-of-tax/value-added-tax/obligations-of-a-vat-vendor/ (Accessed: 21 February 2026).

Budget Summary 2026/2027

Mon, 2 Mar 2026 09:04:00 GMT

On 25 February 2026, Honourable Minister of Finance, Enoch Godongwana, delivered the much anticipated annual Budget Speech for the 2026/2027 fiscal year. The budget marks a pivotal moment for South Africa’s public finances. After years of rising debt, the fiscal trajectory shows a decline in debt and a narrowing budget deficit, which signals stronger fiscal stability and renewed investor confidence.

Key Budget Highlights:

Personal Income Tax: Individuals

Individual tax brackets for the tax year 1 March 2026 to 28 February 2027 will be adjusted in line with inflation:

Taxable income (R)	Rate of tax (R)
R 0 – R 245 100	18% of taxable income
R 245 101 –R 383 100	R 44 118 + 26% of taxable income above R 245100
R 383 101 – R 530 200	R 79 998 + 31% of taxable income above R 383100
R 530 201 – R 695 800	R 125 599 + 36% of taxable income above R 530 200
R 695 801 – R 887 000	R 185 215 + 39% of taxable income above R 695800
R 887 001 – R 1 878 600	R 259 783 + 41% of taxable income above R 887000
R 1 878 601 and above	R 666 339 + 45% of taxable income above R 1 878 600

Rebates and tax thresholds have not increased for the tax year 1 March 2026 to 28 February 2027 and remain as follows:

Category	Rebates	Tax Threshold
Primary <65 years old	R 17 820	R 99 000
Secondary 65 to 75 years old	R 27 585	R 153 250
Tertiary >75 years old	R 30 834	R 171 300

Interest Exemption

The interest exemption thresholds remain as follows:

R 23 800 per annum for taxpayers under the age of 65 years and
R 34 500 per annum for taxpayers aged 65 years and older.

Income Tax: Companies
The Corporate income tax rate remains at 27%.

Income tax: Small Business Corporations
The tax rates for Small Business Corporations for fiscal year ending on any date between 1 April 2026 and 31 March 2027 are as follows:

Taxable income (R)	Rate of tax (R)
R 0 – R 99 000	0% of taxable income
R 99 001 – R 365 000	7% of taxable income above R 99 000
R 365 001 – R 550 000	R 18 620 + 21% of taxable income above R 365 000
R 550 001 and above	R 57 470 + 27% of taxable income above R 550 000

Turnover Tax: Micro Businesses

The tax rates for Micro Businesses for fiscal years ending on any date between 1 March 2026 and 28 February 2027 are as follows:

Taxable income (R)	Rate of tax (R)
R 0 – R 600 000	0%
R 600 001 – R 950 000	1% of the amount above R 600 000
R 950 001 – R 1 400 000	R 3 500 + 2% of the amount above R 950 000
R 1 400 001 – R 2 300 000	R 12 500 + 3% of the amount above R 1 400 000

Transfer Duty

Transfer duty rates and thresholds have remained the same. Therefore, there is still no transfer duty payable on property purchases below R1 210 001.

Medical aid tax credits
Medical aid tax credits have increased to R376 per month for each taxpayer and the first dependent, and R254 for any additional dependents.

Savings and Retirement Fund Changes
The tax tables for lump sum tax-free retirement and withdrawal payments remain unchanged. The tax-free amount that can be withdrawn at retirement is R550 000. However, to promote savings, the following thresholds were adjusted as follows:

the retirement fund contribution deduction limit has been increased from R350 000 to R430 000.
the retirement interest de minimis threshold for annuitisation will increase from R247 500 to R360 000.

In addition, the tax - free investment exemption threshold has increased from R36 000 to R46 000 per tax year. The overall limit of R500 000 was not adjusted

Subsistence Allowance
The daily subsistence allowance for local travel increases to R595 per day for meals and incidental costs and R184 per day for incidental costs alone

Exchange Control Regulations
The single discretionary allowance for individuals of R1 million has been increased to R2 million per calendar year.

Fuel Levy
The general fuel levy will increase by 9 cents per litre for petrol and 8 cents per litre for diesel. The road accident levy increases by 7 cents per litre.

SARS Travel Rate
The new prescribed SARS travel rate effective 01 March 2026 is R4,95 per km.

VAT
The VAT rate has remained unchanged at 15%. However, the compulsory VAT registration threshold has increased from R1 million to R2,3 million and the voluntary VAT registration threshold has increased from R50 000 to R120 000, with effect from 1 April 2026.

Donations Tax
The Donations Tax exemption threshold increased from R100 000 to R150 000 per annum for any donations made by individuals.

Capital Gains Tax
The capital gains tax rate remains the same, however the following changes have been made to the thresholds:

An increase in the primary residence exclusion from R2 million to R3 million.
An increase in the annual exclusion for capital gains tax purposes for individuals and special trusts from R40 000 to R50 000.
Natural persons in the year of death have increased from R300 000 to R440 000.
An increase in the capital gains tax exemption from R1,8 million to R2,7 million for the sale of a small business, where the market value of all the assets does not exceed R15 million and if the natural person is older than 55 years.

National online gambling tax
In addition to the current taxes, there is a proposal of a 20% tax on gross gambling revenue generated by online gambling. Further consultation will take place during the year

For more information on the above and other tax changes, please refer to the comprehensive 2026/2027 PKF taxation guide.

Reetesh Balgobind | Head: Finance

Succession Planning: Laying the foundation for the Construction Industry in South Africa

Mon, 2 Feb 2026 07:39:00 GMT

In South Africa’s construction industry, we often speak about strong foundations, the kind that hold up skyscrapers, bridges and homes. While we spend years perfecting concrete mixes, structural integrity and project timelines, many construction businesses overlook one of their most critical foundations and that is, “Who will lead when today’s key personnel step aside?” This is where succession planning becomes essential.

What does succession planning really mean?

Succession planning is often misunderstood as a document that sits in a file, only to be pulled out when someone resigns or retires. In reality, it is an ongoing process of identifying, developing and preparing future leaders within an organization and equipping them with the skills, confidence and experience to step into critical roles when the time comes.

In the construction context, succession planning goes beyond paperwork. It is the practicality of ensuring that when a site manager leaves, the site does not lose momentum; when a director retires, the business does not lose direction; and when a senior professional steps back, their hard-earned institutional knowledge does not disappear with them.

When there is an intentional transfer of knowledge through structured development programmes and clear communication, succession planning preserves the company’s culture and reputation, whilst motivating emerging key personnel to grow within the business instead of seeking opportunities elsewhere.

Why South Africa cannot afford to ignore succession planning.

The South African construction industry is at a crossroads with skill shortages and many senior key personnel approaching retirement age. At the same time, regulations, compliance requirements and technology are evolving faster than ever before.

Many construction firms were built by founders who poured decades of experience into their businesses. They know their clients personally, understand the risks instinctively and can solve problems on site that others would not even anticipate. This knowledge and expertise should be transferred to build the skills pipelines.

Without a proper succession plan, companies risk losing institutional knowledge, client relationships and project consistency, all of which are vital in an industry where trust and reliability are hard-earned and easily lost. Succession planning is about passing the hammer, the wisdom, mentorship and transferring institutional knowledge.

Retaining talent by showing a future.

One of the biggest reasons that young skilled professionals leave the industry or move between companies is uncertainty. They do not see a clear path forward.

Succession planning changes this. When people realise they are being developed for key roles, they invest more of themselves in the business and stay longer. They begin to take ownership, thus growing with the company instead of outgrowing it.

Stability in an industry that never stands still.

Construction is shaped by economic shifts, policy changes and technological advancements. Businesses with strong succession plans are more resilient because they are not dependent on one or two individuals to survive.

Smooth key personnel transitions reassure clients, stabilise teams and support productivity during change. Employees feel secure, projects stay consistent whilst business continues to move forward without disruption.

The real cost of doing nothing.

Ignoring succession planning comes at a high cost. When key personnel leave without successors, projects slow down, mistakes increase and compliance risks rises. In smaller firms, the loss of a single leader can threaten the survival of the entire business.

Where to start.

Succession planning does not need to be complicated. It starts with intention:

Identify critical roles within your business that it cannot afford to lose.
Identify, assess and develop potential future leaders early.
Create mentorship plans and on-the-job learning opportunities.
Document processes, decisions and lessons learned.
Encourage open conversations about growth and leadership.
Partner with training institutions and industry bodies to strengthen your talent pipeline.

Every step taken today reduces the risk tomorrow. The strongest structures are not only built with steel and concrete, but they are built with people who are ready to lead when the time comes.

By leveraging the Master Builders KZN Institute of Learning’s accredited, practical and flexible training programmes, the construction industry can build a strong pipeline of skilled professionals. This ensures businesses are equipped for sustainable growth while developing the next generation of key personnel.

Reetesh Balgobind | Head: Finance

References:

Giebelmann, T. (2021) Small business guide to succession planning. Sage Advice South Africa. Available at: https://www.sage.com/en-za/blog/small-business-guide-to-succession-planning/ (Accessed: 6 January 2026)

Tzupan (2024) Why succession planning in the construction industry is imperative. RBT CPAs. Available at: https://www.rbtcpas.com/thought-leadership-articles/magazine/why-succession-planning-in-the-construction-industry-is-imperative/ (Accessed: 6 Janu

Smart Tax Moves: Claim Deductions That Put Money Back in Your Pocket

Mon, 1 Dec 2025 08:38:00 GMT

When tax season comes around, most of us either panic or hit ‘submit’ without thinking twice. However did you know that SARS allows you to claim back certain expenses that could reduce your tax liability or even secure you a tax refund?

This article outlines the main deductions that taxpayers in South Africa may be eligible to claim when filing their tax returns.

Medical expenses

If you contribute to a medical aid scheme, whether for yourself or your family, you are entitled to a monthly medical tax credit for yourself and dependants. In addition, qualifying out-of-pocket medical expenses such as doctors and specialists’ visits and prescribed medication not covered by your medical aid may also be deductible. It is essential to retain all medical aid statements and receipts, as SARS may request them to verify your claims.

Retirement savings

SARS provides an incentive for saving towards retirement. Contributions to a pension fund, provident fund or retirement annuity are deductible up to 27.5% of the higher of your total taxable income or remuneration, subject to an annual cap of R350,000. To ensure the deduction is correctly captured and processed, you must attach the relevant tax certificate to your annual income tax return. This provides SARS with the necessary proof to verify your contribution amount and the corresponding tax-saving benefit.

Work-related travel

Taxpayers who receive a travel allowance or use their own vehicle for business purposes can claim a deduction for the business portion of travel expenses, provided they maintain an accurate logbook. The logbook must record business and private kilometres separately. Allowable expenses include fuel, maintenance, and wear and tear as determined by SARS’s official rate per kilometre tables. Personal travel is not deductible.

Home office expenses

Employees or business owners who work from home may claim a portion of certain household expenses if they use a dedicated workspace exclusively for business purposes. For employees, home office claims are generally allowed only if more than 50% of duties are performed from that space.

Qualifying expenses can include rent or bond interest, electricity, internet, telephone, cleaning, and maintenance costs. The workspace must be used regularly and exclusively for work-related activities and not shared with personal or family use. Employees should ensure their employer does not already reimburse or cover these expenses, as double claiming could result in penalties.

Donations to charitable organisations

Donations made to an approved Public Benefit Organisation (PBO) are tax-deductible up to 10% of your taxable income, provided the organisation is registered with SARS and issues a valid Section 18A certificate. Even small recurring donations can add up over the year and provide a meaningful tax benefit.

Commission earners

If more than 50% of your income is derived from commission, SARS allows you to claim a wider range of deductions than a standard salaried employee. These may include expenses such as cellphone and internet costs, marketing and promotional expenses, business travel, office supplies and administrative support. All claimed expenses must directly relate to your income generation and be backed by documentation such as receipts or invoices.

Tax practitioner fees

Fees paid to a registered tax practitioner may be deductible if the services rendered are directly related to your income generation. For example, if you are self-employed, earn commission or run a business. For salaried employees, these fees are not deductible under the current SARS regulations.

Wear and tear on work tools

SARS permits a wear-and-tear allowance under Section 11(e) of the Income Tax Act for assets used to generate income. If you use personal items such as a laptop, cellphone, or office equipment for work, you can claim a deduction based on the proportion of business use.

Examples of typical write-off periods include:
• Laptop or computer: 3 years
• Cellphone or tablet: 2 years
• Printer or scanner: 3 years
• Office furniture or desk: 6 years
• Office chair: 5 years
• Filing cabinet or shelving: 6 years
• Photocopier: 5 years

The above write-off periods are indicative. SARS may adjust, depending on asset type and use.

Only the portion used for business purposes may be claimed. For example, if your laptop is used 70% for work, you may deduct 70% of the wear-and-tear cost.

Legal fees (work-related only)

Legal fees may be deductible under Section 11(c) of the Income Tax Act if they are incurred in protecting, recovering or securing your income. Examples include costs related to unfair dismissal disputes, recovery of unpaid commission or breach of employment contract matters. Supporting documentation and evidence of the link between the legal fees and income protection are essential for SARS to allow the deduction. However, legal fees for personal, criminal or non-income-related issues cannot be deducted.

Study and training costs

SARS allows the deduction of study or training expenses that are directly related to your current income earning activities, as per Section 11(a) of the Income Tax Act. This typically applies to self-employed individuals, business owners or commission earners seeking to maintain or improve their existing skills. Training costs paid or reimbursed by an employer cannot be claimed again by the employee. Study costs incurred for a new qualification or career change are not deductible.

Record keeping

For deductions you intend to claim, all supporting documents including receipts, statements, logbooks and certificates must be retained for at least five years after submitting your return. SARS may request these at any time during an audit or review process. Electronic records and scanned receipts are accepted, provided they are legible and can be produced on request.

Claiming legitimate tax deductions is not tax avoidance, it is smart tax planning. By knowing which expenses qualify and keeping proper records, you can reduce your tax liability and make the most of the relief that SARS provide. If you’re unsure about what applies to you, consult a registered tax practitioner for professional advice.

Reetesh Balgobind | Head: Finance

References:

1. South Africa, 1962, Income Tax Act No. 58 of 1962. Pretoria: Government Printer.

2. PKF Tax Guide 2025/2026. [online] Available at: https://www.pkf.co.za/

Annual Awards 2025

Wed, 5 Nov 2025 10:12:00 GMT

Master Builders KwaZulu-Natal Celebrates Excellence at Annual Awards

Left to right: Craig Gainsford: President, Master Builders KwaZulu-Natal; Martin Meyer: KwaZulu-Natal MEC for Public Works and Infrastructure: Vikashnee Harbhajan: Executive Director, Master Builders KwaZulu-Natal

The Master Builders KwaZulu-Natal Annual Awards event is the premier gala event at which KwaZulu-Natal companies showcase their work, celebrate their achievements and gain recognition for excellence in Construction and Health and Safety.

The prestigious event took place on Friday 31 October 2025 at Sibaya Casino and Entertainment Kingdom under the theme “One Algorithm and One Brick at a Time,” where the Association hosted over 300 guests, including competition entrants, industry stakeholders and government representatives.

Craig Gainsford, President of Master Builders KwaZulu-Natal opened the event by welcoming all attendees and stated: “Excellence in construction and health and safety is not merely a benchmark. It reflects the dedication, hard work and professionalism of our member companies. These awards shine a well-deserved spotlight on their success, achieved often in the face of economic pressures, site disruptions and other external challenges. They represent success in project delivery, resilience, creativity and determination, the very foundation of our industry’s strength.”

The keynote address was delivered by the KwaZulu-Natal MEC for Public Works and Infrastructure, the Honourable Martin Meyer, who announced that the key objectives were to address existing historical challenges and to build better for the people of KZN. He stated that partnerships with the sector are essential as they form the foundation for achieving these objectives. He emphasised the necessity of fostering strong relationships with key stakeholders responsible for constructing hospitals, schools, roads and other infrastructure projects.

The MEC proudly stated that over the past three months, all contractors had been paid within 30 days and that Public Works was committed to ensuring this timeframe. He further addressed the need to develop smaller contractors into larger entities to increase the pool of contractors from KZN who could be appointed for projects in the province. The MEC further underscored initiatives to simplify tender processes and called on the industry to collaborate with the Department, to close the skills gap between TVET college standards and Industry requirements.

Vikashnee Harbhajan, Executive Director of Master Builders KwaZulu-Natal presented the recipients of the awards and indicated that the Association acknowledges the outstanding achievements and celebrates its Member companies for the highest standards of quality, safety and innovation, as they create structures, shape communities and inspire the next generation of Master Builders. With entries in both competitions having spanned a vast area across the province, an impressive 58 entries were received, which was a commendable increase from the prior year. This growth highlights the industry’s commitment to health and safety excellence. She concluded by indicating that “Excellence is not a milestone; it is a journey of continuous improvement, powered by vision, grit and integrity. As we honour the achievements of 2025, let us carry forward the determination to keep raising the bar, to build smarter, safer and better than before.”

Special awards that recognise outstanding and positive contribution to the construction industry were awarded as follows:

Award of Merit: Felicia Ntombi Msiza, Raubex (Pty) Ltd
Award for Woman in Construction: Nompumelelo Mnguni, Bethu Projects (Pty) Ltd.
Supplier of the Year: Corobrik (Pty) Ltd
Safety Person of the Year: Francois Hartkopf, Raubex (Pty) Ltd.
Supreme Award for Health and Safety: Patcon Building & Civil Engineering Contractors (Pty) Ltd
Supreme Award for Excellence in Construction: SJC Projects
Overall Winner: Stefanutti Stocks Coasta

The prestigious Overall Winner award celebrates a Master Builders KwaZulu-Natal member company for demonstrating overall excellence in both the Excellence in Construction and Health and Safety competitions. Congratulations to Stefanutti Stocks Coastal for this outstanding accomplishment.

The Association extends sincere appreciation to its marketing partners for the event:

Abbeydale KZN (Pty) Ltd
Thekweni Reinforcing (Pty) Ltd
Cox Yeats
RIB South Africa (Pty) Ltd
Builders, a division of Massmart Retail (Pty) Ltd
Stefanutti Stocks Coastal
Patcon Building & Civil Engineering Contractors (Pty) Ltd
Vunani Fund Managers (Pty) LTD
FNB a Division of FirstRand Bank Limited
AlexForbes Investments
Corobrik (PTY) LTD
Construction Industry Development Board

Congratulations to all the participants and winners and may this recognition inspire continued excellence and innovation!

Download Full OHS Winners List (PDF)

Download Full Excellence in Construction List (PDF)

The World is changing and so is construction: What does this mean for South Africa?

Mon, 6 Oct 2025 12:59:00 GMT

Take a drive through any South African city and you’ll see a familiar sight of potholes in the road, housing developments springing up, malls rising from empty plots and cranes dotting the skyline. The construction industry remains a powerful engine of growth. What happens when the world starts changing how it builds? What does that mean for us here at home in South Africa?

Globally, the construction industry is undergoing a revolution. It is no longer just about bricks and mortar anymore, it’s about smart technology, artificial intelligence, sustainability and new ways of thinking. For South Africa, this brings both exciting opportunities and real challenges.

How the World is Building Differently

Imagine walking onto a construction site and instead of the usual sounds of hammers and drills, you see drones surveying land, robots laying bricks or software predicting construction delays before they happen. It sounds futuristic but it is happening right now and it is revolutionising the construction industry in ways we never thought possible.

Globally, construction is becoming faster, smarter and greener:

Digital Tools are leading the way: From BIM (Building Information Modelling) to drones, robotics and 3D printing, technology is streamlining processes, improving accuracy, reducing errors and enhancing collaboration. These innovations are transforming planning and execution across projects.
Going Green - Sustainability is now essential: As climate change becomes harder to ignore, green building practices are gaining momentum. Energy-efficient designs, solar integration and eco-friendly materials are in demand for environmental reasons as it make financial sense.
A Shift in Workforce Needs: The global shortage of traditional construction workers is coinciding with a growing demand for tech-savvy professionals. New roles are emerging, requiring digital literacy and knowledge of sustainable practices.

What This Means for South Africa

South Africa’s construction industry has been through some challenging times. Delayed projects, funding issues, corruption and high unemployment has hindered the county's advancement. However, global changes are opening new doors and if we are ready to walk through them, technology can level the playing field.

Digital adoption is crucial: Many local construction companies, especially smaller ones still rely on old-school methods. While this is not inherently bad, it limits competitiveness, especially in securing international contracts. Adopting tools like BIM, AI-powered project planning and digital tracking will improve efficiency, safety and project delivery.
Green building is a major opportunity: With Eskom’s ongoing challenges and rising energy prices, South Africa is well positioned to benefit from green building. From solar panel installations to water-saving systems, eco-friendly solutions can reduce costs and drive new demand, particularly in government and commercial projects.
Material costs are a growing concern: Heavy reliance on imported materials such as steel and timber makes the industry vulnerable to global price increases, fuel hikes and supply chain issues. Local manufacturing, better planning and smart sourcing of alternative materials could help ease the burden.
Bridging the Skills Gap: While global demand rises for digitally skilled builders, South Africa faces high youth unemployment. This gap presents an opportunity. By upskilling young people in construction technology, safety and sustainability, we can achieve industry needs while addressing joblessness.

Looking Ahead: Time to build smarter

The world is changing and South Africa’s construction industry is standing at a crossroad. We can continue doing things the traditional way and risk falling behind, or we can embrace change, invest in skill development, adopt new technologies and build for the future.

This transformation requires collaboration between government, private sector, and training institutions. It is not just about infrastructure, it is about building a resilient, future-ready industry that supports jobs, communities and the economy.

As South Africans, our creativity and resilience have carried us through many challenges. Now is the time to use those strengths to reimagine construction for the next generation.

Reetesh Balgobind | Head: Finance

References:

World Economic Forum. (2016) Shaping the Future of Construction: A Landscape in Transformation [PDF]. Cologny: World Economic Forum. Available at: https://www3.weforum.org/docs/WEF_Shaping_the_Future_of_Construction_full_report__.pdf (Accessed: 26 July 2025).

The Civil Studies. (n.d.). Drones and robotics: The future of construction technology. [online] Available at: https://thecivilstudies.com/drones-robotics-construction-technology-future/ [Accessed 27 Jul. 2025].

Majola, G. (2025, June 2). Navigating material shortages and price hikes: challenges for South Africa’s construction industry. Independent Online. Available at: https://iol.co.za/business/property/2025-06-02-navigating-material-shortages-and-price-hikes-challenges-for-south-africas-construction-industry/ [Accessed 27 Jul. 2025].

Data Breaches and Social Engineering

Mon, 6 Oct 2025 11:22:00 GMT

In recent years there have been many reports of high-profile data breaches, resulting in chaos for organisations that fell victim to it. This drives home the point that there are people out there, from remote locations behind a computer screen, who can pinpoint system and network weaknesses to find a backdoor in, and essentially hold organisations to ransom or use the access to cause irreparable reputational damage.

It is therefore no surprise that in this modern computer age, companies and governments invest heavily in systems and software to protect themselves from hi-tech breaches.

It is however also important not to lose sight of old school methods for gaining access that do not involve computer hacking. In such instances, intruders primarily rely on social engineering and exploit poor physical security. These tactics exploit human psychology. Widely used methods include shoulder surfing, pretexting, tailgating, baiting and the infamous honey trap:

Shoulder surfing: With this low-tech method, a person physically looks over someone's shoulder to steal data. They may watch their target enter a PIN or type a password into a device. Binoculars or hidden cameras can be utilised for remote observation.
Pretexting: This involves creating a fabricated scenario to deceive a target into giving up information. A person may impersonate a trusted figure, such as an IT support person or a compliance official to convince an individual to provide sensitive details. This can happen over the phone or in person.
Tailgating: An unauthorised person follows an authorised employee into a business, often by pretending to be a delivery person or a maintenance worker. Once inside, they can access valuable information via unattended devices.
Baiting: This tactic uses temptation to lure a victim. An attacker may leave a malware-infected USB drive lying around hoping a curious employee will plug it into a computer.
Honey Trap: This is when fake romantic relationships are used to manipulate people into breaching confidentiality, exploiting emotions rather than digital systems. Attackers gain unauthorised access through clever deception, luring victims into sharing sensitive data. This sophisticated social engineering tactic preys on human vulnerabilities, making it a potent threat.

Although the above listed tactics seem simple and obvious to avoid, it is often the simple and obvious that catches people off guard.

Ernest Roper | Membership Manager

References:

https://www.seqrite.com/

https://www.mitnicksecurity.com/

Master Builders South Africa - Congress 2025

Fri, 12 Sep 2025 16:27:00 GMT

The Master Builders South Africa (MBSA) Congress was held on 5 September at the Sun City Convention Centre, North West Province. The Congress is one of the highlights on the national construction industry calendar and is aimed at addressing immediate issues and opportunities. The theme of the Congress was “Turning South Africa into a construction site: Collaborative Commitment to Accelerate Infrastructure Development and Investment”.

The keynote address was delivered by Honourable Dean Macpherson, Minister of Public Works and Infrastructure. His consistent message of turning South Africa into a construction site was reinforced. The Minister praised construction companies as the “unsung heroes of the industry.” Efforts to clamp down on corruption were highlighted and the Minister stated that accountability is built by ensuring transparency. The objective is to build smarter and to build projects that make a difference. The George Building Collapse was mourned as a national tragedy and the critical importance of safety was emphasised. He stated that safety is not negotiable and that we need a fatality-free construction sector. The Minister called upon Master Builders to partner and bring skills and innovation to the table.

SANRAL’s CEO, Reginald Demana, discussed the importance of leveraging Public-Private Partnerships for infrastructure development and investment. The presentation covered the importance and sources of funding as well as the economic impact of SANRAL.

Lebogang Phasha from the Construction Education and Training Authority (CETA) presented on rebuilding local government capacity and capabilities to accelerate infrastructure development and maintenance. South Africa was experiencing a construction boom, however, the issue of skills shortages was highlighted. The presentation covered the steps to be taken to unlock the full potential of the construction sector.

Other highlights of the event included a legal roundtable, unpacking various legislative and compliance reforms to assist the country to expedite its infrastructure investment and development plans.

On conclusion of the Congress, the MBSA AGM for Member Delegates was held and the Congress Resolutions were adopted. Sam Ngcongo, Past President and current member of the Association’s Executive Council was installed as the MBSA President for a further term of office.

The Congress was recognised by attendees as a vital platform for driving collaboration and inspiring innovation in the sector.

The MBSA National Safety Awards were presented at the MBSA Annual Banquet. A keynote address was delivered by the Deputy Minister of Employment and Labour, Honourable Judith Nemadzinga-Tshablala addressing key issues and compliance in the construction sector. The Association extends its congratulations to Members of the Association for their outstanding performance in the MBSA National Safety Competition.

Bilaal Dawood | Head: Membership Services

Approaching Retirement? Here’s What to Do with Your Retirement Savings at ages 55 and 65

Mon, 1 Sep 2025 12:52:00 GMT

Reaching 55 or 65 is not just about milestone birthdays, rather these are major turning points in your retirement journey. At these ages, key financial opportunities and decisions can shape your future. You’re no longer just building up your pot of money, you’re preparing to protect it and use it wisely.

Why does the milestone age 55 and 65 matter?
At 55, you can start accessing some retirement funds, including retirement annuities and preservation funds. At 65, as many conclude their working careers, retirement savings typically become their primary source of income, thus making it crucial to manage it wisely for lasting financial independence.

What to do around age 55

1. Shift to protection
Until now, you have been focused on growing your money. But once you reach 55, it is time to start protecting what you have built. That means shifting some investments from high-risk areas (shares) and into safer options (bonds, money markets). You do not need to go ultra-safe just yet but maintain a balance for stability.

2. Keep Saving
Boost your retirement savings while you still enjoy tax benefits. SARS allows you to contribute up to 27.5% of your taxable income each year (capped at R350,000), plus R36,000 in a tax-free savings account. The more you save now, the more you benefit from compound growth.

3. Know the Rules
Although you can legally access certain retirement funds at 55, think carefully before doing so, as early withdrawals can reduce both your long-term income and tax efficiency. For a retirement annuity, you can take up to one-third as a lump sum, with the remainder converted into a monthly pension. A preservation fund allows one full or partial withdrawal in your lifetime, so it should be used strategically.

4. Plan for Lifestyle and Healthcare
This is also the ideal time to start planning for the lifestyle you want in retirement, exploring ways to supplement your income such as part-time work or rental property. Reviewing your medical cover to ensure it will meet your needs in the years ahead.

What to Do Around Age 65

1. Turn Your Savings into Income

The shift from building wealth to drawing an income from it, is one of the most significant financial changes you will experience. You can choose between taking your savings as:

Life annuity: Pays you a monthly fixed amount for life, which gives you less flexibility but greater security; or
Living annuity: you decide how much to take out and how your money is invested, which gives you more flexibility but increased risk.
Combination: Often the best choice for balancing stability and control.

2. Balance Risk
Your retirement income may need to last 20 to 30 years, so your investments should still aim for some growth to outpace inflation while avoiding unnecessary risk. Striking the right investment balance is key. Reviewing the fees on your investments is also important, as high costs can quietly erode your savings over time.

3. Withdraw wisely
One of the biggest challenges in retirement is making sure your money stretches as far as you need it to. Managing your withdrawals wisely is critical; drawing too much too soon can quickly deplete your funds. A common guideline is to limit withdrawals to 4%–5% of your total savings each year, but the right figure will depend on your personal needs, lifestyle, and market conditions.

Finally, a tax-efficient withdrawal plan, developed with the help of a financial adviser, can ensure that more of your money stays invested and working for you. By taking a thoughtful and disciplined approach at this stage, you can protect your hard-earned savings and enjoy the retirement lifestyle you have worked towards for decades.

Other Smart Moves Between 55 and 65

Review your Will and update your beneficiaries.
Pay off debt.
Secure medical aid cover.
Create a realistic retirement budget.
Consider downsizing your home.
Cut back on any unused subscriptions and memberships.
Review your payments and cancel anything you no longer use.
If you have two cars, consider reducing to one, if possible.

Plan today. Enjoy tomorrow.
Whether you are 55 and planning, or 65 and stepping into retirement, one thing is certain, “Do not leave it to chance.” Plan today. Enjoy tomorrow. Your future self will thank you.

Reetesh Balgobind | Head: Finance

References:
https://www.moneyweb.co.za/
https://www.sars.gov.za/

Purpose of the Employment Equity Committee

Tue, 26 Aug 2025 14:56:00 GMT

The Employment Equity Committee (EEC) is essential for promoting diversity, addressing discrimination, and ensuring compliance with employment equity laws within an organisation.

The Committee is established to promote equitable and inclusive workplaces. It plays a crucial role in analysing the current employee profile, identifying barriers to equality and implementing affirmative action measures. It also ensures that all employees are treated fairly and that the organisation complies with the Employment Equity Act.

How to appoint an effective Employment Equity Committee

According to section 16 of the Employment Equity Act (EEA) which clarifies the consultation process between a designated employer and its employees, electing an EEC is a crucial step in promoting diversity and inclusion in the workplace.

A step-by-step guide to help you elect an EMPLOYMENT EQUITY COMITTEE:

Understand the purpose: The EEC is responsible for promoting employment equity, addressing discrimination, and implementing affirmative action measures.
Determine the committee size: Decide on the number of members, ensuring representation in terms of occupational levels (mentioned above), race and gender.
Identify eligible voters: All employees, including management, should be eligible to vote.
Nominate candidates: Employees can nominate themselves or others, ensuring a diverse pool of candidates.
Hold elections: Conduct a fair and transparent election process.
Select committee members: Choose members based on the election results, ensuring a representative and diverse committee. The individual with the highest vote for each occupational level (Top Management, Senior Management, Junior Management/ Professional, Skilled, Semi-Skilled, Unskilled) will be a committee member.
Provide training: Offer training on employment equity, diversity and inclusion to ensure that committee members are equipped to fulfil their responsibilities.

What are the benefits of being compliant with the Employment Equity Act?

Being compliant with employment equity legislation offers numerous benefits to organisations in South Africa. Below find a summary of these benefits:

Legal and Regulatory Benefits

Avoids legal repercussions and fines
Ensures compliance with Employment Equity Act, 1998 (Act No. 55 of 1998)
Meets Department of Employment and Labour’s requirements
Reduces risk of lawsuits and disputes

Business Benefits

Enhances reputation and credibility
Increases competitiveness and market share
Supports business growth and expansion
Attracts and retains top talent
Improves employee morale and productivity
Better decision-making through diverse perspectives
Access to government contracts and tenders

Social Benefits

Promotes diversity, inclusion and equality
Addresses historical imbalances and disparities
Empowers marginalised groups (e.g. women, youth, people with disabilities)
Fosters a fair and respectful workplace culture
Supports Broad-Based Black Economic Empowerment (B-BBEE)

Reference: https://serr.co.za/

Anisha Naidoo | Human Resources Manager

Scam Alert: 5 Red flags you should never ignore

Mon, 4 Aug 2025 10:58:00 GMT

The attraction of easy money or unbelievable deals can be incredibly tempting, but unsuspecting individuals often fall victim to sophisticated scams. Recognising the warning signs is your first line of defence. One of the most prominent indicators is an unsolicited offer that seems too good to be true. Whether it is a lottery win you never entered, an inheritance from a distant relative you have never heard of, or an investment promising guaranteed, astronomically high returns with zero risk, these are almost always designed to separate you from your hard-earned cash. Scammers rely on greed and a lack of scepticism to reel in their victims, so if a deal sounds like it's defying the laws of economics, it most certainly is.

Another significant red flag is pressure to act immediately or provide personal information. Legitimate businesses and opportunities will allow you time to consider and research. Scammers however, thrive on creating a sense of urgency. They might claim a limited time offer, a fleeting opportunity, or threaten dire consequences if you don't comply right away. This pressure tactic is designed to prevent you from thinking critically or seeking advice. Similarly, if someone is asking for sensitive personal data like your ID number, bank account details or passwords for an unverified reason, be incredibly wary. No reputable organisation will demand such information via an unsolicited email or phone call.

The third common sign involves unusual payment methods. Scammers often insist on payment through non-traceable or difficult-to-recover methods like gift cards, wire transfers, cryptocurrency or pre-paid debit cards. They avoid standard payment channels because these generally offer greater protection for consumers and are easier to track. If someone is directing you to pay in these ways for a product, service or even to release funds you supposedly won, consider it a major warning.

Furthermore, poor grammar and unprofessional communication can also be indicative of a scam. While not foolproof, many fraudulent communications are riddled with spelling mistakes, grammatical errors and awkward phrasing. This often points to individuals operating outside of legitimate business practices.

Finally, be highly suspicious of requests to pay upfront fees for winnings or services. If you are told that you have won a prize but need to pay a processing fee or taxes before you can claim it, it is a scam. Likewise, if a job opportunity requires you to pay for training materials or equipment before you even start, proceed with extreme caution. These upfront fees are simply the scammer's way of extracting money from you. By staying vigilant and recognising these five common signs, you can significantly reduce your risk of falling victim to fraudulent schemes. Always trust your gut feeling – if something feels off, it probably is.

You can find more information on the various types of scams through the South African Banking Risk Information Centre’s website: www.sabric.co.za

Vishane Pramrajh | Employee Benefits Manager

Multi-factor authentication & why we need it

Mon, 4 Aug 2025 10:51:00 GMT

Multi-factor authentication (MFA) is rapidly becoming standard practice across various online systems and processing modules. Essentially, it is a security measure that requires users to provide multiple forms of identification to access an account or system. By adding an extra layer of protection beyond just a password, MFA significantly reduces the likelihood of unauthorised users gaining access, even if they have managed to steal or guess the password.

MFA requires users to present at least two "factors" of authentication. This is typically achieved by downloading and setting up an authenticator app that generates one-time passwords. In practice, once it is set up, all that is required is to open the app, view the password and enter it along with your other login details, when logging in.

Why people should use MFA:

Enhanced Security:
Reduces the risk of access when passwords are compromised.

Protection Against Phishing:
MFA makes it harder for attackers to succeed with phishing attacks, where users are tricked into entering their credentials on a fake website.

Reduced Risk of Account Takeovers:
By requiring multiple factors, MFA makes it much more difficult for hackers to take control of user accounts.

Protection from Password Re-use:
If a user re-uses passwords across multiple accounts, MFA can limit the damage from a single breach.

Peace of Mind:
Knowing that accounts are more secure can give users greater peace of mind when using online services.

Mitigating Corporate Risk
The adoption of MFA across various industries helps mitigate risks, especially for those handling sensitive financial or personal information.

Ernest Roper | Membership Services Manager

Time to comply or face consequence - Appoint a public officer

Mon, 7 Jul 2025 07:33:00 GMT

The South African Revenue Service (SARS) is moving forward on pursing the enforcement of public officers for companies operating in South Africa. The reforms are part of a wide-ranging initiative to obtain compliance and streamline the management of tax issues for business.

Under Section 246 of the Income Tax Act No. 58 of 1962 and the Tax Administration Act 2011, every trust, company, and other legal entity engaged in business in South Africa must have a public officer. For SARS purposes, the public officer acts as a point of contact for the company
on all tax matters.

Who can be appointed as a public officer?

To be eligible to be nominated as a public officer the following requirements must be met:

Be an individual (not a company, corporation, or organization).
Be a resident in South Africa.
Occupy a senior position of responsibility in a company, e.g. director, manager, or accounting officer.
Should be appointed by the Board of Directors, shareholders, or controlling persons.
Must be registered with SARS within 21 days of the company commencing business or tax liability.

Where the company fails to appoint a public officer, SARS has the authority to designate a person to fulfil the role.

Key roles and responsibilities of a public officer

The public officer’s roles and responsibilities include:

Representation of the Company: Being the main contact point for SARS on behalf of the company for all tax-related issues.

Communication with SARS: Responsible for liaising with SARS and submitting requested documentation regarding tax assessments, notices, audits and queries.

Tax compliance: Ensuring the company adheres to all tax regulations, including filing accurate Income tax returns, VATvat returns, PAYE, provisional tax returns, etc. This also includes ensuring PAYE, UIF, and SDL deductions are made and timeously paid over to SARS to avoid penalties.

Maintaining records: Ensuring the company maintains accurate financial records in accordance with SARS requirements.

Advisory role: Providing guidance on tax-related matters to senior management and assisting in making informed decisions regarding tax strategies.

Risk management: Playing a crucial role in managing tax liability risks by ensuring compliance with relevant laws.

Public officer personal liability for the company’s tax debt

The company itself remains liable for its tax obligations. However in instances of negligence, tax evasion or failure to perform duties, SARS can hold the public officer personally responsible for the unpaid tax. Where the public officer wilfully facilitated the company in tax evasion or neglected to submit tax returns, SARS can impose personal liability through the Tax Administration Act. SARS can bring action against Directors or Senior Officers when tax non-compliance results from wilful misconduct.

Consequences of non-compliance

Should the public officer fail to execute their duties, the company and the individual may face:

Administrative penalties for late submissions or non-compliance.
Interest and fines for unpaid taxes.
SARS Litigation including prosecution.
Personal accountability when negligence or dishonesty is proved.
Increased Scrutiny in the form of more frequent SARS audits.
Damage to the company’s reputation, affecting stakeholder relationships.

Where there is a public officer change, the company will be obligated to inform SARS within 14 days of the change having occurred. Failure to notify can result in substantial penalties.

In summary, the role of the public officer is a significant one to maintain compliance with SARS regulations. Although the company remains responsible for paying its taxes, the public officer will also be personally liable in case the officer is guilty of tax fraud, negligence or evasion. As the representative person, the public officer is legally bound to provide compliance, record-keeping, and advising on tax matters. This benefits the company's financial integrity, risk management and strategic planning. Firms should thus carefully appoint a qualified and responsible individual to this position.

References:

South Africa, 2011, Tax Administration Act No. 28 of 2011. Pretoria: Government Printer
South Africa, 1962, Income Tax Act No. 58 of 1962. Pretoria: Government Printer.
Public Officer, n.d, Public Officer for Sars, [online] Available at: https://publicofficer.co.za [Accessed 26 May 2025]
Kilgetty, n.d, Public officer responsibilities under South African tax law, [online] Available at: https://kilgetty.co.za/public-officer-responsibilities-under-south-african-tax-law/, [Accessed 26 May 2025]

Reetesh Balgobind | Head : Finance

Hours of Work and Overtime

Sun, 1 Jun 2025 16:25:00 GMT

Overtime is regulated by chapter 2 of the Basic Conditions of Employment Act which however, is not applicable to the following employees:

Senior managerial employees.
Employees engaged as sales staff who travel to the premises of customers and who regulate their own hours of work.
Employees who work less than 24 hours a month for an employer.

Every employer in South Africa must regulate the working time of each employee as follows:

In accordance with the provisions of any Act governing occupational health and safety.
With due regard to the health and safety of employees.
With due regard to the Code of Good Practice on the Regulation of Working Time issued under section 87(1)(a) of the Act.
With due regard to the family responsibilities of employees.

Section 9 of the Basic Conditions of Employment Act:

The maximum normal working time for an employee below the threshold is 45 hours per week. This would mean that an employee can work up to a maximum of nine hours in a single day if they work five days or fewer in a week. If they work more than five days a week, the maximum allowable hours per day is eight hours. The current overtime threshold is R261 748,45 per annum (from 1 April 2025) - R21 812,37 per month.

This does not mean that the employee must work 45 hours per week normal time. The amount of normal time worked is a matter of contractual agreement between employer and employee. Some employees for instance only work a 40-hour week. The statutory limitation of 45 hours per week means that the employee may not work more than 45 hours per week normal time. Employees who earn above the determined threshold amount must negotiate the normal number of working hours per day or per week with the employer.

The maximum permissible overtime as per section 10 of the Basic Conditions of Employment Act is 10 hours in any 1 week. As per the definitions of the Act, a week means the period of seven days that typically constitutes the working week for that employee, while a "day" is defined as a 24-hour period starting from the time the employee usually begins their work. Employees earning below the threshold must be paid 1.5 times the normal wage rate for overtime worked except for Sundays. Overtime on a Sunday must be remunerated at double the normal wage rate.

Employees who earn more than the present threshold amount are not subject to the provisions of section 10 (overtime) of the Basic Conditions of Employment Act. This means that such employees cannot demand to be paid for overtime worked, nor can they demand to be granted paid time off. However contrary to popular belief, the employer also cannot force such employees to work overtime and cannot demand that they work overtime without compensation, unless the employee agrees to this.

All forced labour is prohibited in terms of section 48 of the Basic Conditions of Employment Act and should the employer require such employees over the overtime threshold to work overtime, then the hours to be worked and the basis of compensation will have to be negotiated between the two parties.

Reference:

https://labourguide.co.za

Anisha Naidoo | HR Manager

Two-Pot Retirement System - Withdrawals, Fees, & Tax Implications

Sun, 1 Jun 2025 16:11:00 GMT

The Two-Pot Retirement System, designed to offer both immediate access to funds and long-term savings growth, has seen a significant number of South Africans turning to their retirement "Savings Pot" for financial relief. In the tax year ending February 2025, over 2.69 million individuals dipped into these savings, many of whom had also made withdrawals in the previous tax year. This trend suggests a continuing struggle with financial pressures for a substantial portion of the population, raising concerns about the long-term implications for retirement security and highlighting the need for financial literacy and support programmes to help individuals navigate their retirement savings more effectively.

The South African Revenue Service (SARS) reported a significant financial impact from the Two-Pot retirement system in its initial six months. A substantial R47 billion in gross lump sums was accessed from the Savings Pot by retirement fund members following the system's implementation on 1 September 2024. This wave of withdrawals generated a surprising R12 billion in tax revenue, dwarfing the National Treasury's initial forecast of R5 billion. While the revenue boost is noteworthy, SARS expresses concern over the increasing trend of South Africans drawing from their retirement savings, highlighting potential long-term financial security risks for individuals and the nation as a whole. This unexpected surge in withdrawals warrants further investigation and careful consideration of its implications for future retirement planning and economic stability in South Africa.

Accessing your savings pot before retirement might seem tempting, but it's crucial to understand the associated costs. These withdrawals aren't tax-free; it is taxed at your marginal rate and a large enough withdrawal, could bump you into a higher tax bracket increasing the amount you owe in taxes. Beyond taxes, administrative fees will also chip away at the requested amount, leaving you with potentially much less than you anticipated. The cumulative effect of yearly withdrawals can be surprisingly detrimental. Studies show that annual withdrawals shrink your retirement portfolio by up to a third compared to leaving it untouched. This is largely due to the loss of compound interest, a powerful tool for wealth accumulation over time. By withdrawing early, you forfeit the opportunity for your savings to grow exponentially, potentially impacting your retirement lifestyle.

Accessing retirement funds early can feel like a quick fix, but it is crucial to carefully consider the long-term implications. While tempting to tap into these savings for immediate needs or desires, using it for non-essential spending can significantly derail your retirement plans. Remember, these funds are designed to support you in your later years and depleting them now means potentially facing financial hardship when you are no longer earning a regular income. Therefore, before considering accessing retirement funds, explore all other possible options and ensure it is a strategically sound decision, not just a convenient one.

Vishane Pramrajh | Employee Benefits Manager

Mean Old Malware

Sun, 4 May 2025 18:37:00 GMT

Every organisation or private computer owner should be concerned about malware.
The reason you should be concerned is that it can compromise device security, steal personal data such as passwords and financial information, cause data loss or corruption and disrupt business or personal activities.

The Internet Service Providers’ Association (ISPA) recommends taking the following actions to help ensure your computer stays adequately protected for a safer and more secure online experience:

Keep your computer’s operating system, anti-virus and other security software updated.
Install a firewall – hardware or software to stop certain computers or networks from accessing your system without your permission. Windows come with software firewalls built in. Ensure that your firewall is turned on and stays on.
Turn on automatic updates so that all your software receives the latest fixes. Some software updates aren’t included in your operating system updates, but they are just as important. Software such as Adobe Flash, Adobe Reader and Java release regular updates that may include repairs for new security problems that have been found.
Check for browser updates (Internet Explorer, Firefox, Chrome, Safari etc.) just click the “help” tab and select “check for updates”. Some browsers automatically update when a new version is released. Check your browser for plug-ins, extensions, and third-party programmes/tools that require access to any Web Mail Accounts such as Google, Yahoo or HotMail.
Use passwords that are hard to guess and change them at least once a year. Don’t reuse your passwords with other websites. Clear forms, passwords, cache and cookies in your browser on a regular basis – especially when using a public computer. Strong passwords use upper and lower case letters, numbers and symbols. An example of a strong password is BJ37#gh+k2! (Please make up your own).
Stop and think before you click on links or attachments. Don’t open suspicious emails or attachments from any sources. Don’t click on links in emails requesting your personal details. Always sign out when you’ve finished reading your email. If possible treat all emails as suspicious – even an email from a friend may be infected.
Check your “sent items” file or “outgoing” email. If you find unknown messages in your outbox it is probably a sign that your computer may be infected with spyware, and may be part of a botnet sending email using your account. This isn’t foolproof: many spammers have learned to hide their unauthorised access.
Stop and think before you share any personal or financial information about yourself, your friends or family online. Know what your children or companions are doing online. Make sure they know how to stay safe and encourage them to report anything suspicious. Be careful when posting photos, birth date or other information about yourself in public places on the Internet.
Set up your wireless network securely. If you are using a wireless router/modem, turn on the security features with a strong password. Use WPA or WPA2 encryption on your Wi-Fi equipment (WEP is an older standard and is less secure). Refer to your router/modem manual or contact your ISP for further details.
Avoid illegal peer to peer file-sharing sites – sites that distribute unauthorised versions of software, music or free movies are known to attract versions that can contain malware.
Carry out a web search on a software title before you download it. If other people have been infected, word tends to get out and a web search will usually bring it to light.
Take care with short URLs and double extensions of files. Often you can get your browser or application to preview the longer version of the URL. Watch for odd file extensions such as help.txt.vb or mother. jpg.exe. Also set your system to show all extensions. .Txt and .jpg are usually benign extensions. Your system will usually recognise the last extensions – .vb or exe which can activate and infect.
If you believe that your banking information, either corporate or personal has been divulged change your passwords immediately and contact your financial institution.

Reference material sources:

www. cybercrime.org.za

www.isap.co.za

Ernest Roper | Membership Manager

Cyber breaches, human error and negligence

Mon, 7 Apr 2025 11:55:00 GMT

If one looks this up online, it is evident that there is research available indicating what percentage of cyber breaches are caused by human error or negligence. It seems to range from 88% to 95%, depending on the source you consult.

Listed below are just a few causes of such breaches:

Social Media Negligence

In a recent incident, a high-ranking U.S Government official came under fire for inadvertently including a journalist on an online chat group in which sensitive information was shared. This is an indication of how a slip of the fingers on a cell phone or the pre-emptive loading of the wrong email address, can do proper damage. Proceed with caution when communicating private information.

Use of weak passwords.

It is often necessary to provide personal information such as a spouse's name, date of birth, etc. on various applications. While using simple passwords like your spouse’s name or your own birthday may be easy to remember, they can also be easily guessed by individuals who have access to your basic information. (It is advisable to create strong passwords that incorporate upper case, lower case and alpha numeric for enhanced security).

Falling Prey to scammers

Employees frequently become victims of scams perpetrated through the dissemination of malicious email links. They may inadvertently click on these links without recognizing their potential harm. In certain instances, personnel contribute to security vulnerabilities by unintentionally downloading harmful software or connecting devices whose security integrity might already be compromised.

Not locking computers, smartphones and tablets

This is a fundamental aspect of cybersecurity practices. Although the majority of individuals and organisations implement this measure for laptops, it is frequently overlooked for other devices. It is imperative to ensure there are no chances for an inquisitive person in a home office environment or an unfamiliar individual in a café to inadvertently access any device that contains business-related data.

Trusting public Wi-Fi

This issue is prevalent, particularly among employees who frequently travel. It likely stems from the intangible nature of network activities. For instance, it would be apparent if someone were physically reading over your shoulder; however, one cannot perceive another's monitoring within someone else’s IT infrastructure.

Post-It notices

Believe it or not this still happens. Pick up a keyboard in an office and you may find a conveniently “secret” password recorded.

In today's world of high-tech hacking, corporate espionage and identity theft, the obvious is often overlooked. It’s up to all of us to exercise caution and practice common sense measures.

Ernest Roper | Membership Manager

Budget summary 2025/2026

Sun, 6 Apr 2025 16:26:00 GMT

After much anticipation, the annual budget speech for the 2025/2026 fiscal year was presented by the Honourable Minister of Finance Enoch Godongwana on 12 March 2025.

Some key aspects to note:

In 2024, the economy grew by only 0.6%. Over the medium term, GDP growth is projected to average 1.8%.

The consolidated budget deficit is expected to narrow from 5% of GDP in 2024/25 to 3.5% of GDP in 2027/28.
Government debt will stabilise at 76.2% of GDP in 2025/26.
Debt-service costs will amount to R389.6 billion in the current financial year. This translates to 22 cents of every rand we raise in revenue. It is more than the amount we spend on health care, police services and basic education.
National Treasury has proposed reducing the budget deficit with tax policy proposals that are designed to raise R28 billion in additional revenue in 2025/26 and R14.5 billion in 2026/27. Key to this additional revenue is the increase in the VAT rate.

Key Budget Highlights

Personal Income Tax: Individuals and Trust

Individual tax brackets have not increased for the tax year 1 March 2025 to 28 February 2026 and remain as follows:

Taxable income (R)	Rate of tax (R)
R 0 – R 237 100	18% of taxable income
R 237 101 –R 370 500	R 42 678 + 26% of taxable income above R 237 100
R 370 501 – R 512 800	R 77 362 + 31% of taxable income above R 370 500
R 512 801 – R 673 000	R 121 475 + 36% of taxable income above R 512 800
R 673 001 – R 857 900	R 179 147 + 39% of taxable income above R 673 000
R 857 901 – R 1 817 000	R 251 258 + 41% of taxable income above R 857 900
R 1 817 001 and above	R 644 489 + 45% of taxable income above R 1 817 000

The tax rate on trusts remains unchanged at 45%.

Rebates

The primary rebate has not increased and is still R17 235 per year.

The secondary rebate which applies to individuals aged 65 to 74 has not increased and is still R9 444 per year.

The third rebate which applies to individuals aged 75 and older has not increased and is still R3 145 per year.

Tax thresholds

The threshold below which individuals are not liable for personal income tax, has not increased and remains as follows:

For persons younger than 65, it will be R95 750
For persons between the ages of 65 to below 75, it will be R148 217
For persons 75 years and older, it will be R165 689

Interest rate exemptions

The interest rate exemptions will not be adjusted for inflation and will therefore remain the same.

Under age 65	R23 800
Age 65 and over	R34 500

Turnover Tax – Micro Businesses

Years of assessment ending between 01 March 2025 and 28 February 2026

Turnover (R)	Rate of Tax (R)
R 0- R 335 000	Nil
R 335 001 - R 500 000	1% of the amount over R 355 000
R 500 001 – R 750 000	R1 650 + 2% of the amount over R500 000
R 750 001 – R 1 000 000	R 6 650 + 3% of the amount over R750 000

Small Business – Corporations

Years of assessment ending between 1 April 2025 and 31 March 2026

Turnover (R)	Rate of Tax (R)
R 0 – R95 750	Nil
R 95 751 – R 365 000	7% of the amount over R 95 750
R 365 001 – R 550 000	R 18 848 + 21% of the amount over R 365 000
R 550 001 +	R 57 698 + 27% of the amount over R 550 000

Corporate Income Tax Rate

There have been no changes and the tax rate remains at 27%.

Retirement tax

There were no adjustments to the retirement tax tables.

Transfer Duty

There has been a 10% adjustment of the monetary values to the transfer duty thresholds. The transfer duty taxes remain unchanged. There is no transfer duty payable on property purchases below R1 210 000.

Medical Tax Credits

For the tax year 2025/2026, monthly medical scheme tax credits will remain the same.

Capital Gains Tax

There were no changes announced to the taxation of capital gains.

Value Added Tax

The VAT rate shall increase from 15% to 15.5% effective 1 May 2025 and to 16% effective 1 April 2026.

Estate duty and Donations Tax

There were no changes made to existing estate duty or to the current tax rate on donations.

Tax free Savings account

There were no adjustments made to the maximum contributions that may be paid into a tax-free savings account.

Excise Duties

Excise Duties on alcoholic beverages will increase by 6.75% which is above inflation. In addition, there will be an increase of 6.75% in excise duties on cigars and pipe tobacco and 4.75% on cigarettes and other tobacco products.

Fuel Levies

No change to the general fuel levy and road accident levy. However, from 2 April 2025 the Carbon Fuel Levy will increase by 3 cents on both petrol and diesel.

Carbon Tax

The Carbon Tax increased from R190 per tonne to R236 per tonne of the carbon dioxide equivalent.

Sin Tax

Increase of 6.75% in excise duties on alcoholic beverages, an increase of 6.75% in excise duties on cigars and pipe tobacco products and an increase of 4.75% in excise duties on cigarettes and other tobacco products.

Social Grants

The old age grant, war veterans grant, disability grant and care dependency grant will increase by R130 in April 2025. The Foster care grant will increase by R70 in April 2025 and the child support grant and grant-in-aid grant will both increase by R30 in April 2025.

References

https://www.sataxguide.co.za/south-african-budget-2025-tax-proposals/
https://www.pkf.co.za/publications/sa-tax-guides/pkf-sa-tax-guide-2025-2026/

Melessia Naidoo

Durban Golf Day Reminder

Mon, 3 Mar 2025 12:44:00 GMT

MASTER BUILDER KWAZULU-NATAL
Durban Golf Day 2025

Book now to avoid disappointment!

The Master Builders KwaZulu-Natal Durban Golf Day is fast approaching. Numbers are limited and interested parties should book now to avoid disappointment.

The event is tailored for both social golfers seeking an enjoyable day out and competitive golfers alike. Moreover, it provides excellent networking opportunities with contractors and Industry suppliers.

Venue: Cotswold Downs Golf & Country Estate
Date: 14 March 2025
Tee-Off: 10H00

BOOK NOW

To secure a booking download an entry form and email the completed form to chervon@masterbuilders.co.za. Bookings are taken on a first come first serve basis.

For Golf Day Marketing Partner opportunities refer to the entry form.

DOWNLOAD ENTRY FORM BELOW

Entry Form (PDF)

Rules & Format (PDF)

The Importance of Budgeting

Mon, 3 Mar 2025 10:49:00 GMT

What is Budgeting?

Budgeting is a strategic planning process which entails an estimation of revenue and expenses over a specified future period that is re-evaluated on a periodic basis.

The importance of Budgeting

Identifies available capital, estimates expenditure and anticipates incoming revenue.
Helps manage cash flow more efficiently.
Allocates resources effectively. It ensures that money is allocated to items that support the strategic objectives of the business. It restricts spending that is not part of the plan.
Measures performance and ensures that objectives are met. Reviewing and comparing the budget with actuals can provide information that highlights the strengths and weaknesses of the business.
Improves decision-making and risk management. With a comparison of previous spending and current expense allocations, businesses can identify potential challenges. Identifying these issues can help management teams develop solutions before problems arise, enabling them to overcome challenges more effectively.
Provides a structured framework for planning and achieving long-term success. Companies create strategic plans for future growth and development. Data from budgets help organizations implement strategies to meet company goals. With a budget, businesses can create revenue and cost projections to make important financial decisions.

“A Budget is telling your money where to go instead of wondering where it went” Dave Ramsey

References

Melessia Naidoo | Head: Finance

The impact of late payments on small businesses in South Africa

Sat, 1 Feb 2025 10:14:00 GMT

Small businesses play an important role in the South African economy. They drive job creation, innovation, skills development and economic growth. Consistent late payments to small businesses create many challenges for operational activities.

Some of these challenges include disrupted cash flow, increased debt, strained relationships and reduced profit margins:

Cash flow disruption.
Small businesses usually have limited available cash. Late payments prevent the business’s ability to pay suppliers, salaries and other bills timeously. This can lead to major financial issues.
Increased debt.
In order to cover expenses during the late payments, additional loans may be required to pay bills. This leads to higher interest costs and lower profit margins.
Strained relationships with suppliers and employees.
Consistent late payments to suppliers can damage relationships resulting in stricter payment terms and/or reduced credit limits. Employees may also be subjected to the late payment of salaries, which may lead to demotivation.
Reduced growth opportunities.
Small businesses will have to delay new projects or expansion plans due to the limited working capital. This hinders growth, innovation and competitiveness.
Operational challenges.

Dealing with late payments requires time and resources which could be used in core business operations and strategic planning.

How to manage and reduce late payments

Create electronic payment methods.
Small businesses can eliminate manual processes by digitising payments.
Offer discounts.
Discounts on invoices encourage customers to pay bills early.
Use invoice automation software.

The use of a computerized invoicing system eliminates time-consuming manual processes.

While late payments are a common problem, the use of the correct tools and strategies can significantly reduce their frequency.

Melessia Naidoo

Head: Finance

Planning and Land Use Management By-law Unpacked

Mon, 2 Dec 2024 10:33:00 GMT

The eThekwini Municipality published a handy guide to municipal by-laws, effectively simplifying these for easy understanding.

One of the by-laws that developers and contractors undertaking work in the municipality need to be cognisant of is the Planning and Land Use Management by-law. This by-law regulates spatial and land use planning within the Municipality, establishing a framework for policies, principles, standards and decision-making procedures. It is important to note that it applies to all land which falls under the authority of the Municipality and applies to everyone.

The Municipality is mandated to develop a Spatial Development Framework, outlining its spatial vision and guiding development decisions. As per Chapter 7 of the by-law, all land development applications must be submitted to the Municipality as it is the initial authority.

Land development without the Municipality's written consent is prohibited. Section 23 of the by-law details the application process, requiring proof of ownership or certified power of attorney. Approval may be conditional and will expire if conditions are not met within a specified time or an authorised extension period.

Chapter 13 of the by-law allows an Enforcement Officer to enter land without prior notice to conduct compliance checks. The Municipality can swiftly act against imminent or irreversible threats to the environment, public health, safety and societal well-being.

An individual commits an offence if they violate or fail to adhere to any provision of this by-law, disregards a condition specified in a decision notice or do not comply with any order or notice lawfully issued. Anyone found guilty of violating this by-law may face a fine or imprisonment for up to 20 years, or both.

Click here to access the notice.

Ernest Roper

Membership Manager

Reference

www.durban.gov.za

SARS announces new Biometric facial recognition for eFiling

Mon, 2 Dec 2024 09:20:00 GMT

The South African Revenue Service (SARS) has announced that new eFiling registrations for Personal Income Tax may now require facial recognition. Biometric facial recognition authentication is being introduced for all individuals who register for eFiling using a valid South African Identity Document.

This applies to the following:

eFiling website
SARS MobiApp
SARS Self-Service Kiosks:

The system will provide instructions e.g. required background setting, removal of headgear and glasses, facial position and distance from the camera. Online guidance will also be provided to help users capture clear photos for authentication.

To register using the eFiling website or SARS MobiApp, a computer (laptop or desktop) or cellphone, with a camera is required. Individuals who do not have access to such a device with a camera can book an appointment for a SARS official to assist with the eFiling registration.

The existing eFiling registration, authentication and manual verification process will still apply to non-South African citizens.

For more information, click below to access the following guides:

Melessia Naidoo

Head: Finance

References

South African Revenue Service. (2024). SARS is keeping your eFiling and tax information safe with biometrics | South African Revenue Service. [online] Available at: https://www.sars.gov.za/latest-news/sars-is-keeping-your-efiling-and-tax-information-safe-with-biometrics/ [Accessed 18 Nov. 2024].

Annual Awards 2022

Wed, 13 Nov 2024 13:23:00 GMT

Master Builders KwaZulu-Natal held its Annual Awards on 7 October 2022 at the Premier Hotel Umhlanga. This glamorous event celebrated the members of the Association for excelling in Construction and Health and Safety.

The President of Master Builders KwaZulu-Natal, Marcus Peter Gonzalves applauded all the entrants and stated that the Association proudly hosted its Annual Awards to celebrate excellence in the construction industry, thereby showcasing the hard work, dedication, high standards and superior quality demonstrated by its members. “All of these ingredients culminate in this celebration of construction excellence, a culture which is continuously promoted by the Association,” said Gonzalves. He reiterated that these are challenging economic times and that all stakeholders should join hands to resuscitate the construction industry.

Vikashnee Harbhajan, the Executive Director of the Association was pleased to take members through this journey of excellence and presented the recipients of the 2022 awards for excellence in Construction and Health and Safety. She added that the Association commended its members for maintaining a high standard of quality and workmanship, and that those who aspire towards Health and Safety excellence save lives, and the Association proudly honoured its members for displaying such high levels of commitment.

Special awards were presented for outstanding and positive contribution to the KwaZulu-Natal construction industry. The Association congratulates the recipients of the following special awards:

Award of Merit: Dirk Jacobus Francois Louw from MET Builders
Supplier of the Year: RotoTank KZN
Woman in Construction: Sarah Unsworth from Southern Natal Construction
Health and Safety Person of the Year: Dr Joseph D. Khoza from WBHO Construction (Pty) Ltd
Supreme Award for Health and Safety: Form-Scaff Durban South
Supreme Award for Excellence in Construction: Smith and Winfield
Overall Winner: WBHO Construction KZN

The Overall Winner award is presented to a Master Builders KwaZulu-Natal member company for demonstrating overall excellence in both the Association’s Excellence in Construction and Health and Safety competitions. The Association congratulates WBHO for clinching this award for the 2^nd year in a row.

The Association extends its sincere gratitude to its marketing partners for the event:

Thekweni Reinforcing (Pty) Ltd
Builders
THE FEDERATED EMPLOYERS MUTUAL ASSURANCE COMPANY (RF) (PTY) LTD
Patcon Building & Civil Engineering Contractors (Pty) Ltd
Khonzi Trading & Projects
Grinaker LTA
Stefanutti Stocks Coastal

The Association salutes all its members!

(L to R) Vikashnee Harbhajan-Executive Director: Master Builders KwaZulu-Natal; Sanjeev Nirghin-Divisional Managing Director, KZN Building: WBHO Construction KZN; Marcus Peter Gonzalves- President: Master Builders KwaZulu-Natal

Award of Merit: Dirk Jacobus Francois Louw from MET Builders

Supplier of the Year: RotoTank KZN

Woman in Construction: Sarah Unsworth from Southern Natal Construction

Health and Safety Person of the Year: Dr Joseph D. Khoza from WBHO Construction (Pty) Ltd

Supreme Award for Health and Safety: Form-Scaff Durban South

Supreme Award for Excellence in Construction: Smith and Winfield

Overall Winner-WBHO Construction KZN

Annual Awards 2023

Fri, 8 Nov 2024 13:12:00 GMT

The Master Builders KwaZulu-Natal Annual Awards, a highly anticipated event in the KwaZulu-Natal construction industry, took place on 27 October 2023, at the Radisson Blu Hotel, Durban, Umhlanga. This prestigious event was a grand celebration, honouring the Association’s members who have demonstrated exceptional performance in Construction and Health and Safety.

Marcus Peter Gonzalves, the President of Master Builders KwaZulu-Natal, commended all the entrants. He commented: “We must recognize that these awards are invaluable, as they provide a ray of hope to those who have worked tirelessly in this industry, often in the face of economic and external pressures.”

Vikashnee Harbhajan, the Executive Director of the Association, delighted the audience during a journey of superb accomplishments as she announced the winners for Excellence in Construction and Health and Safety. She urged members to cherish the awards as a testament to the spirit of excellence and a reaffirmation of the values that Master Builders KwaZulu-Natal is built on. “Together, we shall continue to build a brighter future where excellence is the cornerstone of every project,” added Harbhajan.

Special awards were bestowed to honour remarkable contributions to the construction industry. Master Builders KwaZulu-Natal extends its heartfelt congratulations to the recipients of the following esteemed awards:

Award of Merit: Vinodh Naidoo from Thekweni Reinforcing (Pty) Ltd
Supplier of the Year: Talisman Hire Pinetown
Woman in Construction: Zenande Nwabisa Dinga from Gingordin Methods Trading CC
Health and Safety Person of the Year: Pieter Kruger from Form-Scaff
Supreme Award for Health and Safety: Form-Scaff
Supreme Award for Excellence in Construction: Top Dog Construction
Overall Winner: WBHO Construction KZN

The Overall Winner award is an accolade recognising all-round excellence in both the Excellence in Construction and Health and Safety competitions. The Association congratulates WBHO on their impressive feat of securing this award for the third consecutive year.

Another highlight of the evening was the presentation of the Industry Partner Recognition Award to THE FEDERATED EMPLOYERS MUTUAL ASSURANCE COMPANY (RF) (PTY) LTD also known as FEM, in recognition of continued support as a valued partner to Master Builders KwaZulu-Natal and the unwavering commitment and dedication to the promotion and implementation of health and safety, which has significantly contributed to the South African construction industry.

The Association salutes all its members!

(L to R) Vikashnee Harbhajan - Executive Director: Master Builders KwaZulu-Natal; Marcus Peter Gonzalves - President: Master Builders KwaZulu-Natal and Jailoshini Naidoo - MC and entertainer

Overall Winner - WBHO Construction KZN

Woman in Construction Winner: (Left) Zenande Nwabisa Dinga from Gingordin Methods Trading CC

Supreme Award for Health and Safety Winner: Form-Scaff

Supreme Award for Excellence in Construction: Top Dog Construction

Industry Partner Recognition Award recipient: FEM. (L to R) Marcus Peter Gonzalves - President: Master Builders KwaZulu-Natal; Ndivhuwo Manyonga - CEO: FEM and Vikashnee Harbhajan - Executive Director: Master Builders KwaZulu-Natal

Supplier of the Year Winner - Talisman Hire Pinetown

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