The government turns on the money tap. 28 billion euros will be made loose against inflation. “Today” shows when you get your cash bonuses.
Today, Tuesday, the government presented its big “money-back package” in the Chancellery – “Heute” reported LIVE. An outline of the key points: After hard haggling, agreement was reached on the abolition of the so-called cold progression. There is also a one-time doubling of the already increased climate bonus to a whopping 500 euros, while at the same time the CO2 pricing has been pushed back. In addition, social benefits are indexed and tax credits are increased.
In total, the anti-inflation package should burden the state coffers with 28 billion euros. However, this is expected by 2026, because, as Finance Minister Magnus Brunner (VP) explained, the measures are implemented in three stages:
Level 1 – Emergency relief for the poor
The first cash flows to the citizens will already be available this summer. This first step aims to relieve people with low incomes. These are the hardest hit by the current inflation.
– There are 300 euros for particularly affected groups such as the unemployed and minimum pensioners. These should be paid out by August / September.
– 180 euros as an additional one-off payment of family allowance. This is per child (!) and should come in August so that it can be used before school starts.
Stage 2 – rain of money for everyone
In autumn, the relief should then take effect across the board. The background to this is that inflation has meanwhile also become clearly noticeable in small and medium-sized enterprises.
– 500 euros for each and every one.250 euros of this goes to the already known climate bonus, there is now also a 250 euro price increase bonus for all adults. Each child gets half again, so a total of 250 euros on top of that.
If the state knows an account number, the money will be transferred directly to the citizens from October 1st. If the Treasury does not know the account details, “another variant will be found”. What that will be is currently unclear.
But there is one highlight: Anyone who cashes in more than 90,000 euros in taxable income per year has to pay tax on the 250 euros of the inflation bonus. The state thus gets half of it back via the employee tax assessment.
Stage 3 – long-term reforms
From the beginning of next year 2023, the structural relief should take effect and ensure a permanent strengthening of purchasing power in the country.
– Increase of the family bonus to 2,000 euros is preferred.
– Children’s additional amount is 550 euros raised.
– Deduction amount for 2022 will be increased to 500 euros.
This means that these new tax deductions will already be valid for 2022. In addition, there are massive long-term reforms that will cost around 22 billion euros.
– Abolition of cold progression: Until now, people could possibly afford less despite salary increases because the additional money automatically put them in a higher tax bracket. This should be over now.
– valorization of social benefits: these are now automatically adjusted to inflation, i.e. indexed. The consumer price index provides the target for the increases.
– Reduction of non-wage labor costs: The contribution for commercial accident insurance is to be reduced by a tenth, the family burden equalization fund contribution (FLAF) to 3.7 percent.
That’s what the government says
“This package relieves everyone in Austria and gives them back the financial leeway that price increases and inflation have taken away from them. It is a good mix of immediately effective relief for employees and families and structural reforms that have a lasting effect,” emphasized Chancellor Karl Nehammer. He speaks of a “historic success” in abolishing cold progression.
Vice Chancellor Werner Kogler: “One thing has to be made clear: inflation will be with us for a long time to come. With this relief package, we are providing support as quickly and directly as possible to protect people from the acute effects of inflation.” However, it is clear that rising prices and inflation are due to fossil fuels. “We’re tackling the root cause of inflation by pushing ahead with the energy transition.”
–
