For the first time in a long time, Corona will no longer be allowed to predominate next year. The focus is more on inflation in view of multiple crises, so the year 2023 will bring higher energy prices – but also high salary and pension increases due to inflation. New is the automatic annual adjustment of social benefits, but driving will also become more expensive. Household waste is collected more uniformly and animal welfare in agriculture is becoming somewhat stricter. Below is an overview of the most important changes in Austria.
Wages are rising sharply: Record inflation will lead to record wage increases next year. For example, employees in the large sectors will receive at least seven percent more. The reason for this is the inflation fueled by various crises, which according to Wifo should be around 6.5 percent next year.
Pensions are increased – and there is another bonus: The pensions will be increased by at least 5.8 percent next year. With the exception of so-called luxury pensioners (more than 5,850 euros), everyone will be reimbursed for the inflation rate of 5.8 percent, calculated between August 2022 and July 2021. In addition, there is a socially responsible one-off payment that is paid in March: Depending on the size of the pension, you will receive between 329 and 500 euros – here the luxury pensioners also receive the crème de la crème, but they receive the least.
All social benefits are automatically increased: From 2023, the social benefits that were not previously the case will be automatically adjusted annually for inflation. The previous loss of value of the services is therefore no longer applicable. In 2023, this includes sickness, rehabilitation and reintegration allowances, retraining allowances, childcare allowances and family benefits, as well as child benefits, multi-child allowances and child reductions, as well as school start-up and childcare allowances. The student grant will follow in September. Benefits are expected to be increased by 5.8 percent in 2023.
Survivor bonus, care reform: From the middle of the year, a supplement is paid to caring relatives under certain conditions. Among other things, you must have cared for a close relative in the same household for at least a year. In principle, the amount of the bonus is set at 1500 euros per year (in 2023, however, only 750 euros will be paid). For those working in healthcare, night work will also be upgraded and access to the sixth week of vacation will be easier. The salary supplement for nursing staff will be paid again in 2023.
Dad month brings more money: The addition of the family time allowance (dad month) to later receipt of childcare allowance will no longer apply from 2023. This means that if you also collect child benefit after the dad month, no more 700 euros will be withheld in the future. For child benefit itself, the additional income limit will also be increased from EUR 16,200 to EUR 18,000 per year.
Elimination of cold progression: Announced in June, it now takes effect on January 1: the abolition of cold progression. Like many other measures presented this year, it is designed to cushion the effects of inflation. Two-thirds of the cold progression revenue will automatically flow back to taxpayers in the future. The last third should mainly alleviate the lower incomes. Among other things, companies can look forward to a reduction in corporate tax in 2023.
Mother-child passport will be expanded: In the case of the mother-child card, the benefits for pregnant women and children are expanded, including new advice that gives expectant and new parents a compass for the new phase of life. From 2024, the mother-child passport will also be digitized and renamed parent-child passport.
Focus on protection against violence: Protection against violence will also be central to women’s policy in the coming year. A large part of the women’s budget, which will amount to a total of 24.3 million euros next year, will go to measures against violence.
“Cancer vaccination” for children: From February 2023, the HPV vaccination, which is effective against a total of six types of cancer, will be given free of charge up to the age of 21. The focus is on the period between nine and twelve years, when, according to the Ministry of Health, the effectiveness against HP viruses and later tumors is at its best. Normally such a vaccination costs around 200 euros.
Flu vaccination prescription only: From autumn 2023, the flu vaccination for everyone from the age of 18 will be offered throughout Austria at significantly reduced prices. You then only have to pay the prescription fee.
Being sick becomes more expensive: Being sick will – like every year – more expensive again in 2023. The e-card service costs increase by 40 cents to 13.35 euros, the prescription fee by 20 cents to 6.85 euros.
Out for new fully slatted floors in pig farming: On 1 January 2023, a ban on fully slatted floors in pig farming will take effect, but this only applies to new construction and renovations. The final end was only set in 2040 by the turquoise-green government.
Chick Shredding Prohibited: The animal protection amendment prohibits the shredding of live chicks in livestock farming. The killing or transport to slaughter of mammals in the last third of pregnancy is also prohibited from the beginning of the year.
Drivers pay more: For motorists and motorcyclists, 2023 will mainly bring price increases. The so-called CO2 price introduced on 1 October 2022 will be increased from 30 to 32.50 euros per tonne of CO2 on 1 January. As a result, petrol at filling stations has to become about 0.7 cents per liter more expensive and diesel 0.8 cents per litre. The ÖBB and private railways, on the other hand, receive more money from the state.
Uniform rules for waste separation: From 2023, all plastic packaging such as yoghurt pots, plastic bags or tubes, together with plastic bottles and beverage cartons throughout Austria, will be collected in the yellow bin or yellow bag.
Seize cars from extreme speeders: As a result of fatal accidents, it should be possible to confiscate cars belonging to extreme speeders and eventually auction them off. In the case of mass speeding, drivers must also have their driver’s license revoked on the spot. The draft of the corresponding legislative amendment is still under review until January 20. It is not yet clear when the new regulation will actually come into force.
Probably no new corona lockdown: As for Corona, no major changes are expected in the coming year – unless the virus mutates again or more aggressive variants emerge. The 3G rule for visitors and employees in hospitals, sanatoria and rest and care homes has already fallen, but the face mask obligation in these facilities remains in force. Federal states and individual institutions can take even stricter measures – in Vienna, at least during the cold season, masks will be mandatory not only in hospitals and care facilities, but also on public transport.
Mentally ill offenders are better cared for: There will be a “first milestone” (Minister of Justice Alma Zadić) in 2023 in dealing with mentally ill criminals. It is said that their accommodation will now comply with human rights. The aim of the reform is that only people who are really dangerous are taken care of or remain in prison. In the future, the mentally ill will only be imprisoned if the crime carries a prison sentence of more than three years. Until now, a one-year fine was sufficient.
New Curricula and Specialty Nursing Schools: The year 2023 brings a new type of school with the nursing schools. The primary, secondary and lower AHS levels are getting new curricula and new lateral entry models should provide at least some relief from the teacher shortage. In addition, the individual locations receive more support from secretarial staff, school social workers and school psychologists. There should be more freedom of choice in the superstructure.
New university and change of medical entrance exam: The year 2023 will bring a new university in Austria in the form of the Institute of Digital Sciences Austria in Linz – although study activities there will initially only start to a very limited extent. Future medical students also have to get used to changes in the entrance test: in Austria the test is slightly adjusted. The ÖH elections will be back on the agenda in the spring.
Premiums for owner-occupied home savings and future provisions stable: The premiums for owner-occupied home savings and the government contribution for the old-age provision (“provision for the future”) will remain unchanged in 2023. The housing bonus is again at 1.5 percent. The premium for future provision is still 4.25 percent. The guaranteed interest rate for life insurance and future provisions remains unchanged at 0.0 percent.
Borrowing should be easier: From March it will probably become a bit easier to finance your own home: the requirements for a bank loan, which only became stricter in August, are likely to be noticeably relaxed. Some home builders have already switched to German banks, which have fewer requirements. In any case, senior citizens should benefit from it, because in the future banks should be able to take more account of the probability of repayment and the availability of collateral when granting loans than, for example, the statistical life expectancy of the borrower.
Brokerage fees are waived for tenants: From 1 July, the orderer principle applies to apartment rentals. This means that only those who commission a broker have to pay for it. Until now, tenants usually had to pay agency fees – up to two gross monthly rents – even if the landlord had engaged a real estate agent.
Innovations for travelers: Price hikes are a central theme in all areas of life right now – and travelers will also have to factor in additional costs in the coming year. According to the ÖAMTC, many will feel the consequences of the more expensive Hungary vignette, where the monthly vignette will become 70 percent more expensive. There will also be innovations in Italy. Croatia will join the Schengen area on 1 January and adopt the euro.
Armed Forces procurement plan process: The year 2023 is all about processing a development plan for the army. Investments of 16.6 billion euros are planned by 2032. For example, protected and unprotected vehicles, clothing and equipment including weapons, means of communication and night vision equipment will be purchased in the coming year. The basic military service will receive a higher salary in the new year.
The war in Ukraine is likely to continue, Erdogan counted: In Ukraine, which was attacked by neighboring Russia, a new parliament will be elected in October. But even the biggest optimists in the EU candidate country don’t believe it can really happen. It is more likely that the war in Ukraine will keep us in suspense throughout 2023. The most tense election of the year will be in Turkey, where President Recep Tayyip Erdoğan’s chair is shaking after years of economic woes.
There are three election Sundays: The year 2023, at least the first half of the year, will be dominated by state elections domestically: Lower Austria will re-election its state parliament on January 29, Carinthia on March 5 and Salzburg on April 23. The next National Council elections are not scheduled for fall 2024. So fall is optional – as long as there are no changes.
Sources: APA/Kronen Zeitung
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
