Austria

Generally, personal allowances take the form of tax credits, i.e. deductions from tax payable. By contrast, family allowances are paid to the taxpayer in cash.

Personal allowances

Personal allowances are available as follows:

Notes

1. The increased retiree tax credit amounts up to EUR 1,405 if:
   • the taxpayer is married for more than six months in the calendar year or the registered partner does not live permanently separate
   • the pension income of the taxpayer does not exceed EUR 23,043 per year
   • the income of the spouse does not exceed EUR 2,545 per year, and
   • the taxpayer is not eligible for the sole earner credit.

   The retiree allowance is reduced on a pro-rata basis for annual income between EUR 23,043 and EUR 29,482. For income exceeding the limit of EUR 29,482 per annum, no credit is available.

   If the conditions for the increased retiree tax credit are not fulfilled, then the normal retiree tax credit amounts to EUR 954. The retiree allowance is reduced on a pro-rata basis for annual income between EUR 20,233 and EUR 29,482. For income exceeding the limit of EUR 29,482 per annum, no credit is available.

Family allowance

A monthly tax-free cash payment for children up to age 18, or up to 24 if still in school, or handicapped (up to age 25 under certain conditions), is granted by the government upon formal request. Family allowance (Familienbeihilfe) in Austria is only granted if no foreign entitlement to child benefit is given.

For children living in Austria, the allowances are as follows:

• For children below the age of three: EUR 132.30 per month.
• For children between the ages of three and ten: EUR 141.50 per month.
• For children between the ages of ten and 18: EUR 164.20 per month.
• For orphans and children between the ages of 19 and 24 (25 in some cases) who are in school: EUR 191.60 per month.

Monthly increase: The total family allowance is increased for each child by:

• EUR 8.20 per month if the family allowance is paid for at least two children
• EUR 20.20 per month for at least three children
• EUR 30.70 per month for at least four children
• EUR 37.20 per month for at least five children
• EUR 41.50 per month for at least six children, and
• EUR 60.30 per month for each additional child.

A 13th instalment of family allowance of EUR 116.10 per child will be paid by the tax office in the month of September in each calendar year for each child between the ages of 6 and 15.

These allowances are granted even in cases where no income tax is payable.

Family allowance is paid by the tax office in cash along with the monthly child allowance of EUR 67.80 for each child.

Furthermore, a child care allowance (Kinderbetreuungsgeld) is granted for new-born children. An amount between EUR 16.87 and EUR 76.60 per day is paid for children who have passed the mother-child check up and depends on the length of maternity leave taken by the individual. If the mother-child check up examination is not taken, the child pay will be reduced.

One can choose between flat-rate and income-related child care allowances, whereas the income limit with a flat-rate option is EUR 18,000 per year, the income limit is EUR 8,100 per year if one chooses the income-related option.

An additional allowance for three or more children is granted (Mehrkindzuschlag), but only when the family allowance for children has been obtained and the household income for the previous calendar year does not exceed EUR 55,000. The additional allowance amounts to EUR 23.30 per month for the third and each additional dependent child. This allowance has to be applied by filing a tax return.