Löger: EUR 1.5 billion tax break for 700,000 families through Family Bonus Plus

Families who pay income tax will either be entirely exempt from income tax charges, or will benefit from a tax bonus of EUR 1,500 per child

"The Austrian Federal Government wishes to perceptibly reduce the burden on taxpayers in Austria. Those in work should once again have more money for living. The Family Bonus is a milestone towards achieving this. Through measures such as these, we are also getting closer to our target of reducing tax levels to 40%."

With effect from 1 January 2019, 700,000 families and around 1.2 million children will benefit from this tax relief measure, to the tune of EUR 1.5 billion. "The Family Bonus Plus is one of the main projects for 2018. Those families who pay income tax will either be entirely exempt from income tax charges, or will benefit from a tax bonus of EUR 1,500 per child. Families with young members over 18 years of age will also benefit from the Family Bonus through a tax credit of EUR 500 per child. We are thus inserting an exciting new element into family policy and taking a further step towards becoming the most family-friendly country in Europe," stressed Austrian Finance Minister Löger. "The Family Bonus Plus is primarily a measure to ease the burden on families. In addition, we have also worked on a concept aimed at easing the burden on single parents and single earners too. In this regard, we will implement sufficient relief via the respective tax credit amounts," continued Löger.

"We will not leave anyone standing in the rain. Thus, single parents who do not pay tax, numbering approximately 60,000, and families with children over 18, will also benefit from the Family Bonus. The current child allowance and the tax deductibility of childcare costs up to the age of 10 are to be removed entirely for reasons of simplification and transparency. "Overall, the Family Bonus Plus, with its volume of EUR 1.5 billion, has five times the effect of the existing measures, consisting of the child allowance and tax deductibility of childcare costs. Furthermore, the Family Bonus directly reduces the tax burden and thus has a real effect in cash terms. As a result, parents will notice the effects of the relief directly on their pockets," assures Löger in conclusion.

The new Family Bonus Plus system is to enter into operation on 1 January 2019. Payment will be made either through 2019 payroll accounting or 2019 employee tax assessments, and distributions will be made in 2020.

Details are currently being worked upon. Information will be published on the website of the Austrian Federal Ministry of Finance, at www.bmf.gv.at. Initial questions and answers on the topic have been compiled for your benefit on the basis of today's meeting of the Council of Ministers.