Once a year – Benefits are adjusted for inflation

Also new is that the support for the so-called “daddy month” no longer counts for the childcare allowance. The package was discussed under the title “Inflation Relief Package III” and includes, for example, family and study allowances, childcare allowance and the multiple child benefit.

Income tax limit increased
In addition to social benefits, income taxes are also adjusted for inflation by at least two-thirds. In the future, income tax will only have to be paid from an annual income of just under 11,700 euros. The limit is currently 11,000 euros. In the first year it is also the intention to relieve the two lowest tax brackets extra. The research institutes WIFO and IHS have yet to calculate how high this amount will be. Only the SPÖ voted against this project, which is intended to largely abolish the “cold progression”. She had already criticized it in the previous debate.

Other resolutions in the National Council on Wednesday include reductions in non-wage labor costs for the family pension fund and longer deadlines for applications for energy cost equalization. The application for the voucher of 150 euros would only have been possible until 31 August. Now it is until the end of October.

Criticism: “Reform not retroactive”
Although the new measures against inflation were accepted by a majority, the opposition also expressed criticism. NEOS boss Beate Meinl-Reisinger would have liked to see a retrospective reform. FPÖ MP Hubert Fuchs said the time-delayed adjustment mechanism only works during times of normal inflation. The SPÖ said everything would come too late anyway.