The Austrian government has decided on measures to make it easier for Austrians to increase the price (inflation) of goods and services in the short term. If you have lost track of the individual measures in the meantime, we have summarized them briefly and simply for you (private individuals).
overview
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climate bonus
250 euros climate bonus for all 2022 (Half each for children.)
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cost-of-living bonus
Plus 250 euros price increase bonus for all adults (half for children)
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one-time payment
300 euros for particularly affected groups (Unemployed, minimum pensioners, etc.)
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One-off family allowance
180 euros as additional One-off payment of family allowance im August
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Family bonus & child allowance
Prefer Family bonus (2,000 euros) and increase in child allowance (550 euros) to 2022
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living screen
Extension of the living umbrella (protection against evictions – protection for people who no longer pay rent be able.)
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Digi check
Digi check for apprentices (up to 3 times 500 euros per year) extended
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deduction amount
Increased deduction for 2022 (500 euros)
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bonuses
employees Premium of up to 3,000 euros free of taxes and duties as well as free of SI
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Abolition of cold progression
Tax levels and the deductible amounts are readjusted every year at least with ⅔ of the previous year’s inflation
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social benefits
In the future, social benefits such as family allowance, child tax credit, childcare allowance, study allowance, rehabilitation, sickness and training allowance will be continuously adjusted
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More money for families in Austria
The government has decided on a one-time payment of 180 euros per child for people who receive family allowance. Recipients of family allowance receive this one-time payment automatically in August or September. This means that it does not have to be requested separately.
The family bonus has also been increased and will be 2,000 euros per child or 650 euros for children over 18 next year. This must, however, with the Formular E30Can be requested via the employer’s payroll accounting. If you have not done this, you can apply for the family bonus plus via the employee tax assessment.
In addition, the additional child allowance has been increased. For parents who have a lower income, this tax deduction is increased to 550 euros. This amount must also be applied for in the employee tax assessment in 2023.
Additional payment for child benefit 2022 plus annual adjustment.
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How high is the one-time payment for the unemployed, the sick, pensioners, social security recipients, etc.?
The federal government has also decided to provide initial minor aid for people who are particularly affected by the current inflation.
As an emergency measure, the unemployed, pensioners, the sick, social security recipients, etc. receive a one-off payment of 300 euros, which is automatically paid out in September with the respective benefit, for example unemployment benefit.
How high is the climate bonus and who gets it?
In Austria in October 2022 the CO₂ tax introduced. (One tonne of CO₂ emissions is then taxed at 30 euros). The climate bonus was introduced to cushion this tax burden. Depending on the area, this is a maximum of 200 euros and a minimum of 100 euros per person.
Every person who has had their main residence in Austria for at least 183 days receives this climate bonus. Children who have received family allowance for at least six months are also entitled to 50 percent of the climate bonus. Payment is made automatically by the Ministry of Climate in October or November.
Because of the high inflation, the climate bonus is this year for everyone adults who meet the requirements 250 euros and for children accordingly 125 euros.
How high is the cost-of-living bonus and who gets it?
The cost-of-living bonus is automatically transferred at the same time as the climate bonus. It is 250 euros for everyone over the age of 18 and 50 percent for children under the age of 18 living in the same household.
For people with an annual income of 90,000 euros or more, the marginal tax rate of 50 percent is taxable and these people must state the 250 euros cost-of-living bonus as income via the employee tax assessment.
Pensioners will receive more money this fall through a one-off payment.
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What one-time payment do retirees receive?
Retirees receive a tax- and SV-free one-time payment from their pension insurance in September, which can amount to up to 500 euros.
The cost-of-living tax credit is increased once for pensioners and employees by up to 500 euros. However, this deduction must be applied for at the beginning of next year (2023) via the employee tax assessment.
DANGER: Pensioners who are entitled to a one-off payment are not entitled to the cost-of-living tax credit.
What happens to the tax-free and SI-free premiums for employees?
During the corona pandemic, it was allowed to pay out allowances and bonuses to employees without paying taxes or social security contributions.
This regulation has now been extended until 2023 and affects bonuses of up to 3000 euros per employee and year. However, a third may only be exhausted by collective agreement.
What does the abolition of cold progression mean?
Cold progression is often referred to as a secret tax increase. Why? If inflation rises, salaries and income tax are adjusted, but not the tax brackets.
You will receive more wages and pay wage tax accordingly, but you will end up in a higher tax bracket, which means more taxes for you. Means as much as you end up getting less than before. Now the tax levels and the deductions are to be adjusted every year at least with ⅔ of the previous year’s inflation.
Politics decides about a third. Employees and pensioners receive this money via payroll accounting or employee tax assessments.
Will the social benefits also be adjusted in the future?
The social benefits, at least so far family allowance, child tax credit, childcare allowance, study allowance, rehabilitation, sickness and training allowance will be continuously adjusted in the future.
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