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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?
Families in Austria will receive an extra €180 Familienbeihilfe payment in August (moerschy from 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, so it will be valid in 2023.

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: Austria’s postal service announces prices increases

Prices in Austria continue to rise and, this time, mailing letters and parcels will become more expensive. Here is what you need to know.

Cost of living: Austria's postal service announces prices increases

Austria’s postal service Post said business is “difficult” due to “inflation and uncertainty in the energy market”, stating that the package volume has decreased while their operation costs went up.

The state company’s answer to the challenging scenario is to increase parcel prices, and the changes will be valid starting in October.

Starting on October 1st, prices for posting S letters will go up from €0.85 to €1, M letters from €1.35 to €1.40, S packages from €2.75 to €3 and M packages from €4.30 to €4.50.

READ ALSO: Cost of living: Why are petrol prices in Austria still so high?

“The first six months of 2022 posed major challenges for companies, especially in Europe”, Post said, stating that the “COVID-19 pandemic, its countermeasures and the resulting delays in the global value chain were the starting point for what is now a worldwide inflationary trend.”

“The war in Ukraine has exacerbated the price increases for important raw materials and energy sources. These conditions will continue in the second half of the year. There is also a risk that the energy market will remain difficult to predict and gas supplies in parts of Europe will not be secure.”

Rising inflation and staff shortages

Inflation has been rising in Austria, reaching 9.2% in July, with essential items becoming increasingly more expensive.

READ ALSO: Inflation at 9.2% in July: How to beat rising prices in Austria

So far, the wave of inflation has affected chiefly energy and food prices but has now also arrived in the gastronomy sector, with increasing costs in bars and restaurants across the country.

However, as fuel and energy prices soar, people in Austria will see increases in all sectors, including postage services.

Another major challenge in the Austrian economy is labour shortage – and Post is now having difficulty finding new employees, especially drivers and workers for its distribution centres.

READ ALSO: Five of the biggest challenges facing Austria right now

“We have virtually full employment”, Post CEO Georg Pölzl told the daily Der Standard. He said that the company could immediately hire 1,000 people – if they were able to find the workers.

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