Why is there more money in the account in September

Anyone wondering these days why more money ended up in the account than usual: The turquoise green government’s early tax reform went into effect in September. The download became effective retrospectively on January 1, 2020. The Ministry of Finance has now added the refund corresponding to the usual monthly income.

The tax relief alone costs the state 1.6 billion euros. A sum from which all Austrian taxpayers benefit. Finance Minister Gernot Blümel (ÖVP), who is currently campaigning in Vienna, has calculated that around 1.1 million people will be relieved in the federal capital, the total volume is 325 million euros.

“We want people to keep more money in the Börserl and to boost consumption,” explains Finance Minister Blümel. “Right now we need more optimism and confidence again and with our measures we are making a contribution.” The tax rate will be further reduced to 40 percent.

Here are three focal points of the package in detail:

• Reduce the tax on wages and income: The basic tax rate for low incomes (from 11,000 to 18,000 euros) has been reduced from 25 to 20 percent. Anyone who earns 18,000 euros or more annually is exempt from the maximum amount of 350 euros.
• Payment of the child bonus: With families, the bonus of 360 euros per child lands in their accounts in September. It was recently criticized that, for example, the children of caregivers living abroad receive less. This is because the bonus is tied to the family allowance, which in turn is adjusted to the cost of living. In Romania or Slovakia, these are only lower than in Austria. For example, children in Ireland have a higher bonus.
• Payment of the unemployment bonus: If you do not have a job, and therefore do not have a tax base, you will receive 450 euros as a bonus in September.

The Ministry of Finance provides example calculations for the bonuses: An unemployed person with a child receives 1,160 euros. An employee with one child costs 710 euros, with two children 1,070 euros.

The amount of individual savings can be calculated online: www.bmf.gv.at/rechner