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What to expect from new financial measures in Austria
Austria is constantly launching new programmes to support its residents, and this year is no exception. One of the most important initiatives is the Klimabonus, which comes from the CO2 revenue. The amount of bonus ranges from EUR 100 and EUR 200 per person, depending where the individual resides. For instance, those individuals living in Vienna, which has a well-developed public infrastructure, obtain EUR 100. The payment starts in February for those who were eligible, but did not receive it in 2022. Additionally, it will be made on a regular basis every October from the additional CO2 tax revenue.
PUBLISHED 08.02.2023
Another step is a tax reform, which came into effect on January 1st, which includes tax cuts and the abolition of the cold progression. According to the Austrian Ministry of Finance, the latter will enable Austrian residents to save more than EUR 20B by 2026. Meanwhile, social benefits will be increased on a yearly basis in line with inflation indicators.
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Not forgetting changes on tax brackets, which are to be found below:
- 0% up to EUR 11,693,000 (previously EUR 11,000)
- 20% up to EUR 19,134 (previously EUR 18,000)
- 30% up to EUR 32,075 (previously EUR 31,000)
- 41% up to EUR 62,080 (previously EUR 60,000)
- 48% up to EUR 93,120 (previously EUR 90,000)
- 50% from EUR 93,120 (previously EUR 90,000)
- 55% from EUR 1,000,000 (remains unchanged)
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The electricity price break is effective from December 1st 2022 until June 30th 2024. Thanks to this initiative, electricity costs just 10 cents per kilowatt hour up to a usage of 2,900 kilowatt hours.
Anything above this, and one has to pay in line with current market prices. As a result, Austrian homes can save EUR 400–800 per annum, with the average household savings amounting to EUR 500, as estimated by the Austrian government.
On top of that, Austria now offers an extra EUR 200–400 for heating costs to low-income households, minimum pensioners and welfare recipients. This is available whether one heats with pellets, gas, electricity or another fuel. More changes, including one-off payments, will be additionally announced during this year.
Anything above this, and one has to pay in line with current market prices. As a result, Austrian homes can save EUR 400–800 per annum, with the average household savings amounting to EUR 500, as estimated by the Austrian government.
On top of that, Austria now offers an extra EUR 200–400 for heating costs to low-income households, minimum pensioners and welfare recipients. This is available whether one heats with pellets, gas, electricity or another fuel. More changes, including one-off payments, will be additionally announced during this year.
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Evgeny Pilnikov,
CEO
CEO
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