The National Assembly has approved the Revenue Laws Amendment Bill, which makes changes to various tax laws currently enabling the two-pot retirement system in South Africa.<\/p>\n\n\n\n
While the bill does not make any signficant or fundamental changes to the system, it includes important clarifications and alignments that enable the system to work efficiently and effectively.<\/p>\n\n\n\n
The National Treasury has also noted that further changes to the laws will be coming in future cycles, which could have more significant changes.<\/p>\n\n\n\n
The passing of the bill is part of necessary legislative reforms to support the implementation of the two-pot retirement system, parliament said.<\/p>\n\n\n\n
The system gives individuals limited access to a portion of their retirment savings each year, while preserving the remainder for retirement.<\/p>\n\n\n\n
While the system was already implemented in September 2024, the amendments provide clarity on certain terms and timelines necessary for broader legislative processing.<\/p>\n\n\n\n
The Amendment Bill clarifies the timing of the seeding amount calculation, providing certainty to retirement fund members and administrators.<\/p>\n\n\n\n
It creates optionality for retirement funds to determine the calculation date for the seeding amount, either 31 August 2024 or the last day of the election month as per fund rules and communication to members, for those eligible to opt into the two-pots system.<\/p>\n\n\n\n
It clears up the definition of members\u2019 interests in each of the three components, specifying that the components must be reduced proportionally by applicable section 37D deductions.<\/p>\n\n\n\n
Finally, it aligns the definition of \u201cretirement annuity fund\u201d to ensure consistency with the intended objectives of the reform.<\/p>\n\n\n\n
However, the portfolio committee noted that further clarifications and adjustments will be required in future updates to the bill.<\/p>\n\n\n\n
One of the biggest changes that will be considered by National Treasury in future legislative cycles is the current limitation of only being able to withdraw from one fund.<\/p>\n\n\n\n
The National Treasury published the draft bill in December 2024. <\/p>\n\n\n\n
This was followed by extensive public participation in Parliament’s Standing Committee on Finance, where public input was received from June 2025 onwards.<\/p>\n\n\n\n
With the National Assembly’s approval, the bill will now be sent to the National Council of Provinces for further consideration.<\/p>\n","protected":false},"excerpt":{"rendered":"
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