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COST OF LIVING

Which one-off payments will residents in Austria receive in April?

Inflation has eased in the eurozone but is still at a high level, with the Austrian government presenting plenty of bonuses and payments to help cushion high prices.

Published: 3 April 2023 16:20 CEST
An elderly lady counts out money on a kitchen worktop.
An elderly lady counts out money on a kitchen worktop. Photo: picture alliance/dpa | Christin Klose

Even though inflation is expected to go below the two digits in March, it is still at high levels in Austria, as The Local has reported. As a result, the federal government and provinces have looked for ways to cushion the effects of the high cost of living on its citizens. It has relied heavily on one-off payments, subsidies and bonuses. 

This strategy has caused controversy in Austria, with experts warning against the country’s “scattergun approach”. Still, the payments have been popular among residents, particularly the €500 Klimabonus millions of people with Austrian residency received in 2022. 

READ ALSO: ANALYSIS: Can Austria’s government get inflation under control?

In 2023, though, there is no sign of such a high bonus for residents, though the Klimabonus is set to come back – albeit bringing only up to €200 to residents’ bank accounts. Still, people in Austria can expect a few hundred euros extra as the government tries to combat the cost of living crisis.

Here are which one-off payments you can expect this month in Austria:

Vienna Energy Bonus

With rising energy prices, Austrian governments have been looking for measures to cushion the effects of inflation on the population. In the capital Vienna, the administration is once again paying out an “energy bonus” of €200 to most households.

According to the government, anyone who applied for and received the energy subsidy in 2022, which is the case for 90 percent of the homes, will automatically receive the €200 in their account from April 17th.

If something has changed in the household (for example, if you moved) or you haven’t applied for the 2022 bonus, you will be able to do so after receiving a letter with a password that will allow you to submit a new application online.

READ MORE: How to get Vienna’s €200 energy subsidy in 2023

Carinthia bonus

The “Carinthia bonus” to cushion rising costs was increased to €600, but most of it has already been paid since the beginning of the year. In April, the remaining €100 will be sent to eligible persons.

READ ALSO: Everything that changes in Austria in April 2023

Housing subsidy

Austrian authorities had debated a rent brake – a limit to rental prices – for months. However, they decided to replace it with a one-off payment after coalition partners could not agree to the details. 

Instead of limiting rental increases, the centre-right ÖVP and left-leaning Greens announced a €250 million housing aid boost for Austrian households. The agreement came just before benchmark rents (rents in older buildings which are government-regulated and based on inflation rate) are set for a hike.

Households qualifying for the subsidy will automatically receive the €200 payment as of early April. About one million homes on a lower income will be able to use it.

READ MORE: Austrian government announces €250 million housing aid package

Further payments, including the 2023 Klimabonus, and other benefits, including tax changes, are coming in the next few months.

READ ALSO: Tax cuts and bonus payments: Austria’s financial measures that will benefit people this year

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For members

COST OF LIVING

Austria to hike amount to be paid out for 2024 ‘Klimabonus’ payment

Austrian authorities will soon start sending out the so-called Klimabonus payment, and it will be a higher amount than last year.

Published: 15 May 2024 14:57 CEST
Austria to hike amount to be paid out for 2024 'Klimabonus' payment

The Klimabonus or climate bonus is a part of Austria’s eco-social tax reform, a set of measures to promote climate protection.

One such action includes a tax on CO2 emissions, which increases fuel prices and affects Austrian drivers. The annual Klimabonus payment aims to offset this expense. 

The payment of this year’s climate bonus will see an increase due to the higher CO2 pricing, and so will range between €145 and €290. Last year, the bonuses varied from €110 to €220. The new figures were announced by the Austrian government after the meeting of the Council of Ministers on Wednesday, May 15th, reported ORF.

Payments will be made after the summer

You will receive the bonus if you have had your main residence in Austria registered for more than six months.

As during the precious years, the payment will be made after the summer – by bank transfers and postal deliveries via RSa letter. If you received the payment to your bank account last years, you should update your account details to finanzonline.at to ensure that everything is in order.

READ ALSO: Vienna reveals new plan for how to move away from gas heating

How much will you get?

The idea is that people who live in cities where they can rely on eco-friendly public transportation will receive a lower portion of the bonus. Those who instead have limited access to public transportation and need to pay higher costs, such as for using their car for travelling, will receive a larger portion of the bonus.

The government has created four different categories which decide how much residents in different locations will receive.

  • Category 1: Urban centres with very good infrastructure and excellent public transport facilities, such as Vienna. In Category 1 regions, there is no additional regional compensation, so the payment remains at the base amount (€145 per person).
  • Category 2: Urban centres with good infrastructure and solid public transport facilities, including cities like Graz, Salzburg, Klagenfurt, or St. Pölten. In Category 2 regions, the regional compensation is 33 percent of the base amount (€195 per person).
  • Category 3: Urban centres and surrounding areas with basic public transport facilities or good basic public transport options. Examples of category three regions are Groß-Enzersdorf, Wolfsberg, or Mittersill. In Category 3 regions, the regional compensation is 66 percent of the base amount (€245 per person).
  • Category 4: Rural communities and communities with only basic public transport facilities. Examples of category four regions include Mariazell, Werfen, and Sölden. In Category 4 regions, the regional compensation is 100 percent of the base amount (€290 per person).

READ MORE: Austria climate activist aims to take fight to Brussels

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