Family bonus plus
The Familienbonus Plus is a tax relief decided by the Federal Government Kurz I in the form of a tax deduction for families in Austria .
background
In the National Council election campaign in 2017 , Sebastian Kurz and the ÖVP demanded tax relief for families in the amount of 1500 euros per child and year as part of the family policy goals for the new legislative period. As part of the negotiations on the formation of a government between the ÖVP and the FPÖ at the end of 2017, this demand of the People's Party was incorporated into the government program in the chapter on fairness and justice . The implementation in the form of a tax deduction that directly reduces income tax is justified by the ÖVP and FPÖ by stating that families who bear a larger part of the tax burden should also experience greater relief. In addition, the tax relief for families is to be simplified.
In July 2018, the Family Bonus Plus was approved by both the National Council and the Federal Council and has been in full effect since January 1, 2019 .
According to the Federal Ministry of Finance , the Family Bonus Plus should relieve a total of 950,000 families and approx. 1.6 million children in Austria from income tax of up to 1.5 billion euros; accordingly, this would be the greatest relief measure for families since the existence of the second republic .
principle
Basics
The Familienbonus Plus is a tax deduction that the legal guardians of a child for whom family allowance is being drawn can deduct from income tax. The amount of up to 1500 euros per child per year is deducted directly from the calculated tax amount, but is not subject to negative tax, so the maximum amount of 1500 euros can only be claimed if a corresponding amount of income tax would actually have to be paid. The Family Bonus Plus has a similar effect to the child tax credit, with the difference that it is also subject to negative taxation. The Family Bonus Plus has the highest priority as a deduction and is therefore always effective in the highest possible amount.
For children who are already of legal age , a reduced family bonus plus of 500 euros per child and year can be claimed as long as family allowance is received. There is no higher Family Bonus Plus for children with disabilities, regardless of the higher family allowance. According to the same principle, there is no sibling graduation.
With the introduction of the Family Bonus Plus, childcare costs are no longer deductible from the income tax base; In addition, there is no child allowance, which has also reduced the assessment base. The previous instruments of family allowance (with sibling graduation), the deductible amounts for single parents and sole earners and the child tax credit will remain.
Distribution to several parents
If several parents are subject to income tax, the Family Bonus Plus can either only be claimed by one parent or shared equally between both parents (i.e. 750 euros each). The same rule applies to the reduced Family Bonus Plus for children of legal age.
If the parents live separately, they can agree on a division as described above, otherwise a division into equal parts takes place automatically. Until the end of 2021, a temporary regulation applies, according to which the parent who has mainly paid the childcare costs receives a share of 90 percent (corresponds to 1350 euros). If one parent is responsible for maintenance and does not provide maintenance, the other parent is automatically entitled to the full Family Bonus Plus.
Assertion
The Family Bonus Plus can be registered with the employer for employed persons and is therefore taken into account on a monthly basis. Alternatively, you can only deduct the Family Bonus Plus in the employee tax assessment or income tax return and thus receive the full amount credited in one sum. A similar principle is already used for the commuter euro , for example .
Child excess
If the income tax is between 250 and zero euros per year and the single-earner or single-parent tax credit is due, one parent receives the additional child amount of 250 euros per child and year. In this case, the Family Bonus Plus is no longer available for this parent, but can be used by the other parent (half) if the requirements are met. The excess child amount is subject to negative taxation.
Exceptions
The Familienbonus Plus is not available to children who live outside the EU , the EEA or Switzerland , nor to children of parents who have received minimum income benefits for more than 330 days a year . If a child lives outside Austria in the EU, the EEA or Switzerland, the Family Bonus Plus is paid out in an amount that is adjusted to the price level of the place of residence.
criticism
The SPÖ criticized the fact that the measures adopted would only help those families who already had enough financial means for the children. However, families with low incomes and especially single parents would have little or no advantage. The SPÖ's financial spokesman, Kai Jan Krainer , even described the Family Bonus Plus as a family penalty . With the expected volume of around 1.5 billion euros, according to the SPÖ, it would be possible to expand childcare throughout Austria, including better conditions for paying teachers and opening times.
The Liste Jetzt - Liste Pilz follows a similar line of argument , criticizing the fact that the Family Bonus Plus is redistributing from the bottom to the top, that the income gap is widened and that children are only supported on the basis of their parents' income.
The Neos saw the relief of a large number of citizens as a positive development, but criticized the adjustment of family benefits to the price level of the place of residence, which in their opinion was contrary to European law.
Web links
- Annual Tax Act 2018 in the Federal Law Gazette
- Information on the Family Bonus Plus on the website of the Federal Ministry of Finance
- Gross-net calculator (including Family Bonus Plus)
Individual evidence
- ↑ So the ÖVP wants to change the tax system. In: kleinezeitung.at. September 5, 2017. Retrieved August 20, 2018 .
- ↑ Together. For our Austria. (No longer available online.) Federal Chancellery, archived from the original on June 12, 2018 ; accessed on August 20, 2018 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ National Council approves family bonus. In: wienerzeitung.at. Retrieved August 20, 2018 .
- ↑ How parents benefit from the family bonus. In: nachrichten.at. July 4, 2018, accessed August 20, 2018 .
- ↑ Federal Council seals Family Bonus Plus. In: ots.at. Press service of the Parliamentary Directorate - Parliamentary Correspondence, July 11, 2018, accessed on August 20, 2018 .
- ↑ Family Bonus Plus - All information. (No longer available online.) Federal Ministry of Finance, archived from the original on August 20, 2018 ; accessed on August 20, 2018 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ National Council - Krainer: "Family penalty" excludes the families who need support the most. In: ots.at. SPÖ Parliamentary Club, July 4, 2018, accessed on August 20, 2018 .
- ↑ Family bonus against SPÖ and List Pilz decided. In: derstandard.at. July 4, 2018, accessed August 20, 2018 .
