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Vienna, 30.04.2019 Labour to Be Relieved by € 5 Billion Annually 100 percent of the taxpayers benefit from lower social-insurance contributions, lower tariffs and an increase in the flat rate for income-related expenses

Vienna (OTS) – Approximately 75 percent of the total volume of “Relieving Austria” is accounted for by the relief of labour. From 2022 on, the burden on this will be reduced by € 5 bn each year.

Health insurance contributions will be reduced as early as next year. 1.8 million low-income employees, 1.8 million pensioners and 500,000 self-employed persons, as well as farmers and foresters, will be relieved by this measure to a total of around € 900 m per year. “This will benefit above all those who pay social insurance but not yet income tax. An average employee receives € 280 per year, a pensioner € 170 per year,” said Löger.

Another measure that will reduce the burden on labour by € 3.9 bn per year is the lowering of the first three tariff levels. The currently applicable 25, 35 and 42 percent will be reduced to 20, 30 and 40 percent, respectively. “Due to our progressive tax system, the reduction of the first three tariff levels means a relief for 100 percent of the 4.8 million taxpayers. In particular, those with small and medium incomes will benefit from this,” emphasised Finance State Secretary Hubert Fuchs.

A further financial, but in particular also simplifying measure for tax-paying employees is the increase in the flat rate for income-related expenses. The flat rate for income-related expenses, which is already considered in payroll accounting, will be increased from € 132 to € 300 per year by 2021. This will exempt an additional 60,000 people from having to submit an employee tax assessment in the future. Employees will be relieved by some € 140 m per year. At the same time, the Ministry of Finance is cutting red tape thereby.

“Our tax reform stimulates performance and work again. In particular, those who have suffered particularly from the high tax burden in recent years will be significantly unburdened by ’Relieving Austria’ and will have more money available in the future,” the Finance Minister noted.