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COST OF LIVING

When will you get your cost of living ‘bonus’ payments in Austria?

Austria's package to fight the rising cost of living includes several "bonus" payments for residents in Austria. Here is when you can expect them.

When will you get your cost of living 'bonus' payments in Austria?
Austria is an expensive place to live, but with the right salary it can be affordable. (Photo by moerschy / Pixabay)

Austria’s federal government has unveiled a series of measures worth billions of euros to fight the cost of living crisis. New steps include increasing family allowances, cutting taxes and sending out one-off welfare payouts, as The Local has reported.

However, the authorities were not specific on when payments are to be expected, though they mentioned most of the measures would be in place “by October”.

READ ALSO: EXPLAINED: How Austria’s new finance measures could benefit you

On Wednesday, party leaders Sigrid Mauer (Greens) and August Wöginger (ÖVP) presented a roadmap to lay out when each aid could be expected.

Aid payouts

Low-income and vulnerable people in Austria, such as pensioners receiving minimum payments and aid recipients will receive a one-off €300 payment (Teuerungsausgleich) as compensation for inflation. The payment should be in September.

The most significant payment will be the €500 sum, which consists of €250 as a climate bonus (Klimabonus) and €250 for the “anti-price increase” bonus (Teuerungsbonus). Everyone in Austria will receive that assistance (children receive half of the total amount) in October.

However, retirees will receive a one-time payment of up to €500 from September 1st, depending on how much they receive as pension.

READ ALSO: Austria unveils €6 billion package to fight rising cost of living

An additional one-off payment of the family allowance (Familienbeihilfe) of €180 will be sent for those already on the program in August.

The timeline, according to Mauer, makes it so that the most vulnerable, including low-income people and families, will receive assistance first. Then, in autumn, the payments will go out on a broader scale.

Changes in bonuses and CO2 tax

The anti-inflation package also contains increases in existing family bonuses and payments.

The family bonus (Familienbonus) deduction increases from €1,500 to €2,000, and the increase for additional children payments (Kindermehrbetrags) to €550 is already in force for the fiscal year of 2022.

READ ALSO: EXPLAINED: The main Austrian ‘tax traps’ foreigners should be aware of

The CO2 tax was postponed from July to October in time for the climate bonus payments, which were meant to offset the costs of the tax.

Finally, the end of the cold progression, the term used to describe increases in tax burdens which are based on increases in income but do not account for inflation, is set for 2023.

All the changes still need to be officially approved by Parliament and signed into law. For the measures to take place as soon as possible, a special meeting of the National Council was called for this Thursday, June 23rd.

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COST OF LIVING

Cost of living: Rent prices rise in Austria as fuel costs drop

Inflation continues to hit Austrian households with rent rising at the fastest level for almost two decades. Meanwhile, the cost of fuel dropped in November.

Cost of living: Rent prices rise in Austria as fuel costs drop

Rent prices in Austria have risen at the fastest rate since quarterly figures were introduced in 2004, according to the latest data from Statistics Austria.

In the third quarter of 2022, the average price for rent (including operating costs) rose to €8.8 per square metre per month. This was 3.1 percent higher than in the second quarter and seven percent higher when compared with the same period in 2021.

FOR MEMBERS: How much do you need to earn for a good life in Austria?

But the highest increase in rent was in municipal housing where costs rose by 3.8 percent to hit €7.5 per square metre. 

The Statistics Austria report found the average operating costs in Austria to be €153.3 per apartment or €2.3 per square metre. In the same period in 2021, the average operating costs were €145.7 or €2.2 per square metre.

Meanwhile, the ÖAMTC has revealed that the price of fuel in Austria decreased in November (when compared with prices in October).

READ ALSO: Austria to seize cars from illegal road racers

The price of a litre of premium petrol fell by 8 cents to an average of €1.678, and the cost of diesel dropped by 13 cents to €1.905 per litre. The ÖAMTC is Austria’s mobility and motorist club. 

The price comparison took place before the EU introduced a price cap on Russian oil on Monday December 5, but the ÖAMTC is expecting limited impacts on the cost of fuel in Austria, reports Kurier.

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