2023-09-03 11:13:14
Support measures will be increased annually in the future; more than 8 billion euros ensure that parents and children start school as carefree as possible
Vienna (OTS) – For many children, starting school is the beginning of a new chapter in their lives. It is therefore all the more important to relieve families financially in order to guarantee parents and children a financially worry-free start to this important time.
With the anti-inflation packages, the most important benefits, including family allowance and school start money, will be increased annually from 2023 to counteract the rising cost of living. In 2023, around 4.3 billion euros are earmarked for tax family benefits and a further 3.8 billion euros for the payment of family allowances. In total, around 8.1 billion euros are available.
“Our children are the future of our country. It is our responsibility to give them the best start in life. With the start of the new school year 2023, the Austrian government is continuing its commitment to providing financial relief to families and increasing support for children. The tax relief for our families consists of targeted measures such as the family bonus and amounts to a total of around 4.3 billion euros for 2023,” said Finance Minister Magnus Brunner.
Numerous tax breaks for families and single parents
One of the most effective measures is the Family Bonus Plus, which provides financial support for families with children. Parents can deduct 166.68 euros per child up to their 18th birthday for tax purposes. After the 18th birthday, the bonus is still 54.18 euros per month. The annual tax burden for parents is thus directly reduced by up to 2,000 euros per child and year. In 2023, the total volume for the Family Bonus Plus will be around 2.5 billion euros.
In addition to the family bonus, there are deductions for single earners and single parents, which are graded according to the number of children. The single-parent and single-earner tax credits are €520 for one child, €704 for two children and €936 for three children, and €232 per year for each additional child. The single-earner/single-parent tax credit is generally applicable if there is an entitlement to the child tax credit for more than six months. If your income is low and you are entitled to the single-earner or single-parent tax credit, these amounts can be paid out.
Parents who pay the statutory maintenance for children who do not belong to the household are entitled to the maintenance tax credit. This amounts to EUR 31 per month for the first child, EUR 47 for the second child and EUR 62 each for the third and each additional child.
The child tax credit of 61.80 euros per month and child is paid out together with the family allowance and supports families financially.
Under certain conditions, people with low incomes are entitled to an additional child allowance of up to 550 euros per year.
Families with at least three children and a family income of less than 55,000 euros also receive a multiple-child supplement of 21.20 euros per month.
Tax-free benefits by employers
Employers have the option to offer tax-free benefits. These include, for example, the free or reduced-price use of kindergartens and subsidies for childcare of up to 1,000 euros per child and calendar year.
Parents can also claim expenses for a child’s vocational training abroad as an extraordinary burden if there is no suitable training opportunity within a radius of 80 km.
3.8 billion euros in family allowance
In addition to tax relief, families are also entitled to direct payments such as family allowance and childcare allowance. These transfer payments are tax-free. A total of around 3.8 billion euros has been budgeted for family allowances in 2023. The family allowance per child is up to 174.70 euros, depending on age. In August, the school start fee of 106 euros for children between the ages of 6 and 15 will also be paid out, which will also be increased annually from 2023.
Family Minister Susanne Raab: “Especially when school starts, families with children are confronted with a number of necessary purchases – from pencils to school bags. With the valorization of family benefits, including the school start money, which was paid out in August this year, we have therefore achieved a milestone in family policy. In this way we can help our families and achieve structural improvements for them. This means that with inflation like this, families have up to 2,200 euros more left in their wallets per year. This is huge progress and important money for 1.2 million families and 1.9 million children.”
Questions & contact:
Federal Ministry of Finance, press office
(+43 1) 514 33 501 031
bmf-presse@bmf.gv.at
Johannesgasse 5, 1010 Vienna
1693788866
#BrunnerRaab #start #school #tax #breaks #subsidies #strengthen #family #budgets
