Certain of the other matters which have a bearing on immovable property which were dealt with in the various budget documentation, including future tax proposals, include:

Bodies corporate, share block companies and home owners associations

A variety of organisations described as Community association governing bodies pool funds for community needs such as sectional title bodies corporate, share block companies and other local home owners associations. The levies raised by these organisations from their members are currently tax-free, but all other income is generally taxable. In order to alleviate administration and compliance, it is proposed in the 2008 budget that all non-levy investment income be exempt up to R50 000 per organisation.

Biodiversity, conservation and management

The 2008 Budget proposes measures to encourage conservation of South Africa 's rich biodiversity. Tax reforms to encourage biodiversity conservation by private landowners will be considered. Landowners will receive an income tax deduction for preserving habitats and biodiversity on their land. The deduction will cover expenses incurred in developing and implementing an approved conservation management plan under either the National Biodiversity Act (2004) or the Protected Areas Act (2003). The deductions contemplated would be limited to income derived from the land.

The budget provides that the existing Public Benefit Organisation ("PBO") framework will be reviewed for impediments to tax deductions for property donated to a PBO or parastatal conservation agency where that property is declared a nature reserve or national park under the Protected Areas Act (2003). It is announced that a similar review will be conducted for estate duty, transfer duty, or donations tax exemptions for properties bequeathed, sold or donated to a PBO for declaration as a protected area under that Act.  

Urban development zones

To rejuvenate decaying inner cities, government introduced the urban development zone tax incentive in 2004. The incentive provides accelerated depreciation for refurbished and new commercial buildings in 15 municipalities, and it has been announced yesterday that there is evidence that this measure has made a difference in the pace of development. It has been recommended that the incentive be extended for five years, until March 2014. Municipalities will be given an opportunity to apply for extension of the designated zones, and consideration will be given to expanding the number of participating municipalities.

Housing for low income workers

The Minister has announced that provision of adequate and affordable low-income housing (owned or rented) remains a challenge. The obstacles to providing such housing are often of a regulatory nature. While these challenges are being addressed it is proposed that current provisions in the Income Tax Act encouraging employers, developers, public benefit organisations and landlords to increase the supply of houses for low-income households be enhanced and that additional incentives be explored.

The existing monetary threshold limits for low-cost housing allowances, such as the R6 000 deductible limit per dwelling for employer-provided housing, will be revised. The depreciation allowances for the construction of low-cost houses and associated public infrastructure that employers and developers may claim will be reviewed and enhanced. In the case of employer-provided low-cost housing, further relief with respect to fringe benefit taxation in the hands of the employee will be considered.

2010 infrastructure spend

Following the R9 billion allocated last year to the world cup infrastructure costs for municipal transport, roads and precinct upgrades relating to the event, the Minister yesterday announced a further R2 billion for the stadia and related infrastructure for the following three years.

Property investment vehicles

The Minister has said that a number of future tax legislative items will be analysed as works in progress for possible finalisation after 2008. Even though it is stated that many of these items are merely in need of internal review, certain items call for early public participation. One of these matters relate to property investment vehicles. It was announced in the 2007 Budget Review that the regulatory and tax regimes relating to property holding entities will be analysed during the course of 2007.

It is proposed that the two main types of listed property investment vehicles, property loan stock companies and collective investment schemes in property be replaced with Real Estate Investment Trusts or REITS, in terms of which investors will acquire property units. There will be a different tax treatment of REITS compared to the existing two vehicles as they will be obliged to distribute most of their income to holders of the units who will then become liable for the tax liability.

Agricultural land reform and restitution

Over the following three-year spending period, a further R1 billion is allocated to settle the outstanding 5 083 land restitution claims. Alexkor receives an additional allocation of R260 million to establish a viable mining operation that will be jointly owned with the Richtersveld community - giving effect to the community's restitution claim, successfully concluded in 2007.

As the restitution programme nears completion, the Minister has announced that both human and financial resources are being shifted to accelerate the pace of land redistribution. To date, government has delivered about 4 million hectares of agricultural land to historically disadvantaged beneficiaries and the land reform target is to redistribute 21 million hectares of land by 2014. A further R900 million is allocated for this purpose over the medium term and the total budget for land reform increases from R1.6 billion in 2007/08 to R4.1 billion in 2010/11.