By Magnus Heystek
Here’s a sobering thought: for the first 136 days of 2025, you weren’t working for yourself. You were working for the state.
Only from May 16 — Tax Freedom Day — did your income start landing in your own pocket.
Everything before that? Claimed by a government machine that’s long on promises, short on delivery.
This isn’t just a symbolic date. It’s a barometer. And this year, the barometer is flashing red.
Back in 1995, Tax Freedom Day fell on April 23. Now it’s nearly a month later.
This means South Africans are handing over a greater share of their income to the state — 37% of GDP compared to just 30% in 1995.
And what are we getting in return? Collapsing infrastructure, failing municipalities, and the privilege of buying our own water tanks, diesel, and private security.
It’s not just PAYE that’s bleeding households. VAT, fuel levies, sugar taxes, sin taxes, and municipal charges all add up.
It’s death by a thousand cuts. And make no mistake — the middle class, that dwindling pillar of economic stability, is carrying the lion’s share.
And yet, there’s no sense that the state is on a diet.
On the contrary. The public wage bill remains bloated. SOEs are bottomless pits. Policies like NHI and Expropriation Without Compensation continue to spook investors and citizens alike. The budget deficit widens. Debt balloons. And the calls for “wealth taxes” grow louder by the day.
But it’s not all doom and dustbins. You don’t have to emigrate to state-proof your wealth. There are ways to resist this slow expropriation by stealth.
Start with what you can move. South Africans still have generous offshore investment allowances — up to R11 million per year for those who know how to use them.
Global equity markets, property trusts, and hard-currency investments all offer better protection against rand weakness, policy instability, and local underperformance.
Next, reduce your taxable footprint. Make full use of tax-free savings accounts, and be smart about how you earn income. Not all rands are taxed equally.
If you haven’t had a frank conversation with a tax-literate advisor, now’s the time.
Invest with a focus on real returns. Too many local balanced funds have underperformed inflation over the past decade. That’s not wealth preservation — it’s slow-motion erosion.
Seek out managers who think globally, act independently, and aren’t afraid to go against the herd.
And yes, accept the hard truth: many public services are no longer reliable. That means budgeting for private healthcare, education, and security.
It’s not fair, and it’s not ideal — but it’s necessary. Waiting for reform won’t protect your retirement.
Ultimately, Tax Freedom Day is more than a quirky calendar event. It’s a reminder of who really controls the fruits of your labour — and how much of it you get to keep.
The state is not going on a spending diet anytime soon. But you can go on a fiscal fitness plan of your own.
Don’t wait for policy to change. Change your policy.
* Magnus Heystek is a director and investment strategist at Brenthurst Wealth.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
