Means test thresholds changed

2011-02-23 15:33 - Sapa
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Cape Town - State old age pensions will go up by R60 a month to R1 140 from the beginning of April, Finance Minister Pravin Gordhan announced on Wednesday.

Disability and care dependency grants would go up by the same amount, he said in his budget speech.

For pensioners over 75, the pension would rise by an extra R20 to R1 160.

Foster care grants would increase by R30 to R740.

The child support grant would rise from R250 to R260 in April, and to R270 in October.

Gordhan also said the means test thresholds would be revised, which would benefit households "with modest incomes that reduce their grant entitlements".

National Treasury said in its budget review that the "disregard level" for old age pensions and disability grants would rise from the current R7 272 to R13 680.

The "disregard level" was the amount below which recipients got the full grant.

The grant level fell as income rose above the disregard level.

Above a means threshold, no grant was payable.

The budget would raise the threshold from R31 296 to R44 880.

"It is expected that the disregard level and the means test threshold will be raised in subsequent budgets until the means test threshold is in line with the tax threshold," Treasury said.

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