The relief package in action – calculate your savings now at bmf.gv.at/entlastungsrechner
With the new tax relief calculator from the Ministry of Finance, tax payers can now calculate how much they will save with the relief package.
"We have lived through very challenging times these past two years. We have protected jobs and companies with our economic support measures. Now we need to provide the right impulses to stimulate growth and move forward stronger than before. The Environmentally Responsible Tax Reform is one such impulse, which will have a particularly noticeable effect. We can see and feel the worry that many people in Austria are experiencing in light of the growing uncertainty caused by the war in Europe. That is why we want to make sure that people can at least experience financial relief and are providing information about the tax reform. With our new tax relief calculator, you can now calculate your personal annual savings," explained Finance Minister Magnus Brunner as the new tool was presented at the Ministry of Finance.
The Environmentally Responsible Tax Reform (Ökosoziale Steuerreform) is a relief package that will provide approximately €18 billion in relief until 2025 and will increase take-home pay. It will come into effect gradually, with tax payers, families and companies benefiting the most. Core aspects are reductions in the second and third tariff levels for wage and income tax from 35 to 30% and from 42 to 40%, an increase in the Family Bonus from €1500 per year and child to €2000 per year and child, an increase of the supplementary child benefit (Kindermehrbetrag) to €450 and a reduction of the corporate income tax from 25 to 23% until 2024. In addition, it will introduce a price for CO2 emissions for the first time, which will be compensated by the regional climate bonus awarded in different levels depending on the relevant municipality.
Many will have already noticed a difference on their February payslips, and by mid 2022 everyone will feel the effects of the relief package. The reduction in tariff levels from July 2022 – and with retrospective effect in the form of a mixed taxed rate from 1st January 2022 – is a particularly important step. After all, the tax relief will not only benefit individuals, but also stimulate the economy. When people have more money to live on, they will also spend more: The result is economic growth and new jobs.
The Ministry of Finance (BMF) will promote the tax relief calculator and other measures associated with the relief package. In doing so, the BMF wants people to have a clear idea of how much more money they will have to live on as a result of the tax reform in order to create consumer incentives.
"While other countries are increasing taxes, we are reducing ours. In comparison to Germany, which is also planning relief measures, our package offers six times the relief after adjusting for variables. Our reform will benefit families in particular by increasing the Family Bonus Plus to €2000 per child and year and by expanding the supplementary child benefit," said Magnus Brunner.
One example demonstrates the tax relief provided by the reduction in tariff levels alone: With a monthly gross pay of €1500, the annual savings will be €250 for employees or €231 for pensioners.
"Every employee will be able to see the effects of the tax relief on their payslips in the coming months. Pensioners will also receive more money, as will self-employed people, of course, as part of the 2022 assessment," explained the Finance Minister.