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WHAT CHANGES IN AUSTRIA

Everything that changes in Austria in June 2023

From the end of Covid restrictions to measures against inflation and tax changes, here's everything that changes in Austria in June 2023 that could affect the lives of foreigners in the country.

Everything that changes in Austria in June 2023
Summer is arriving in Austria (Photo by Yannes Kiefer on Unsplash)

End of all Covid restrictions

By the end of June, the Covid Measures Act that has allowed the Austrian government to take several measures to combat the Covid-19 pandemic will expire – and the Health Ministry already announced, with it, so will all Covid restrictions drop.

There are not many left since even the mask mandate in the health sector has been dropped. However, Covid-19 is still a notifiable disease with a specific protocol for those who test positive. After the expiration of the act, though, people who test positive for the disease won’t have to notify their status to health authorities or follow any restrictions. 

The end of the measures also means that there will be no more free Covid tests – people with symptoms could get a referral for testing from their family doctors. 

According to Health Minister Johannes Rauch (Greens), even after the end of the reporting obligation, Austria would continue to monitor the course of the pandemic – particularly with the analysis of PCR samples and evaluation of wastewater in specific treatment plants nationwide.

READ MORE: Austria to drop all Covid restrictions by the end of June

Changes in the police admission process

From June, police in Austria will allow recruits to have visible tattoos, as the Ministry of the Interior (BMI) announced earlier this year. “The skin art is part of the cultural life today”, said Interior Minister Gerhard Karner (ÖVP) at the time.

Previously, applicants with tattoos, for example, on their hands, were not admitted to the selection process. However, due to staff shortages, the police are relaxing this rule. 

Each tattoo will continue to be examined individually to avoid violations of the Prohibition Act or offensive tattoos, for example. Still, the police union has found the measure controversial and stated that society deserved a “proper appearance of the police”, according to Austrian media.

 The less strict tattoo rules are among a series of measures from the federal government looking to attract more people to police work, as The Local reported. In the future, recruits will be offered a Klimaticket (Austria’s nationwide public transport ticket) and could get subsidies for a driver’s licence. In the future, there will also be recruitment bonuses and a higher starting salary to make police work more attractive to potential recruiters.

READ MORE: How Austria wants to attract more police officers

Free public transport in Salzburg

The province of Salzburg is once again promoting its “Gasoline-free days”, starting on June 3rd, according to the Salzburger Nachrichten. Every Saturday from June 3rd to July 1st, people in Salzburg can try out public transport free of charge all throughout the province. 

“We want to attract new customers who will use the services of the Salzburg Transport Association on a permanent basis,” says Transport Provincial Councilor Stefan Schnöll (ÖVP). Last year, the focus was primarily on commuters, but for 2023, the government wants the population to use buses and trains free of charge for leisure activities. 

“We want to appeal to people who have not used public transportation before or have rarely used it,” Schnöll explains. The free rides can be used on Gasoline Free Days from the start to the end of operations. They apply to all bus and train lines of the Salzburg Transport Association in the province of Salzburg.

For all Salzburgers who already use an annual pass, there is an additional offer on the Gasoline Free Days, according to the report. Holders of a yearly pass receive free admission to a museum of their choice in the province of Salzburg on Gasoline Free Days – they only need to show their transport ticket at the museum and then receive free admission. The promotion applies to all valid annual passes.

READ ALSO: Is Salzburg a nice place to live?

Centre-left SPÖ to vote on new leadership

Austria’s main opposition party, the centre-left SPÖ, is set to formally elect a new leader on June 3rd, as The Local has been reporting. Incumbent Pamela Rendi-Wagner, who has led the party since late 2018, has resigned after bitterly losing a “membership vote” late in May. 

Members of the Social Party were asked to vote on a new leader. Despite being a favourite, Rendi-Wagner ended in last place among the three competitors in a very tight race. Burgenland governor Hans Peter Doskozil, who first challenged for the position and is known as being more hard-line on migration, took the lead with 33.68 percent of the votes cast by SPÖ members. 

Traiskirchen Mayor Andreas Babler came second with 31.51 percent. Party chairwoman Pamela Rendi-Wagner came in at 31.35 percent. A total of 147,993 people were eligible to vote, and 107,133 votes were cast. Voter turnout was 72.79 percent.

Rendi-Wagner resigned and said she wouldn’t challenge the results. Babler, who had warned he would not back out if results were close, said he was still in the race. The membership vote is seen as a recommendation, but not binding, for the vote by the delegates at the party congress in June.

READ ALSO: Who will be the Social Democratic Party’s chancellor candidate in the Austrian elections?

New measures against inflation

The new measures against inflation presented by the Austrian federal government in May should take place in June, as The Local reported. The primary measure works to incentivise energy companies that are quicker to pass on drops in wholesale prices to households and businesses in Austria.

According to the administration, suppliers should lower prices voluntarily; otherwise, they will face a higher profit tax. In addition, prices will be adjusted more frequently – at least every six months or even monthly for households with smart meters – allowing the drops to reach the final consumers faster.

“If energy suppliers do not immediately begin to reduce prices, then we, as the Republic, will also make them pay accordingly,” Austrian chancellor Karl Nehammer said when the plan was announced. His goal, the chancellor said, is for the “most expensive supplier to reduce prices by a third”.

READ MORE: How Austria wants energy firms to lower prices for customers

Lower taxes for motorhome insurance

Previously, many motorhome owners experienced a significant increase in motor-related insurance taxes, with some facing levies of over €2,000 per year. This cost surge deterred potential motorhome owners and impacted vehicles registered after October 1st, 2020. In response to these concerns, the Austrian Camping Club (ÖCC), led by Tomas Mehlmauer, advocated for a regulation change.

An amending law has been enacted, resulting in a reduction of the motor-related insurance tax. This change took effect on July 19th, 2022, and will be implemented from June 1st, 2023, following an amendment to the Motor Vehicle and Insurance Tax Act.

The amendment aligns with the ÖCC’s request to tax motorhomes based on the underlying base vehicle’s characteristics. In most cases, motorhomes are built on class N motor vehicles, which are assessed for tax purposes based on the combustion engine’s power in kilowatts, as explained by Michael Szemes of the ÖCC.

Specifically, starting from June 1st, 2023, the engine power will be the basis for calculating the engine-related insurance tax for most motorhomes in Austria. This change also applies to motorhomes that were previously registered for circulation after September 30th, 2020. Therefore, motorhome owners are advised to review advance payment notices from June 1st, 2023, and consult their respective insurance companies if necessary. 

However, it’s important to note that no refunds will be provided for any higher motor-related insurance taxes paid before June 1st, 2023.

READ ALSO: 10 signs you’ve become more Austrian than the Austrians

Holidays and summer

In June, there is one holiday, Corpus Christi (known as Fronleichnam in Austria), which always falls on a Thursday – this year, Thursday, June 8th. This means you can get a long weekend if you take Friday, the 9th, off. June is also the official start of summer, with the summer solstice on June 21st.

READ ALSO: When are Austria’s school summer holidays in 2023?

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COST OF LIVING

Klimabonus: When will people in Austria receive autumn cost of living payouts?

People living in Austria are receiving financial support from the government to help with the rising cost of living. Here's what you need to know about the Klimabonus and other payouts you maybe entitled to this autumn.

Klimabonus: When will people in Austria receive autumn cost of living payouts?

With the cost of everyday goods rising with inflation, the Austrian government has put in place several measures to help residents financially. 

Here’s what you need to know about the payouts coming soon. 

Klimabonus 

The Klimabonus, also known as the climate and anti-inflation bonus, was first released in 2022 and it involved a one-time payment of €500 for almost every resident in the country.

A similar payout was announced earlier this year – although the amount is significantly lower and it depends on your place of residence. 

The prerequisite for the subsidy payment is that your primary residence is Austria for at least 183 days (around six months) of the calendar year.

The climate bonus is a part of Austria’s eco-social tax reform, a set of measures to promote climate protection. It includes a tax on CO2 emissions, which increases fuel prices and affects Austrian drivers. The annual Klimabonus aims to offset this expense. 

The Austrian government confirmed that the payout of the Klimabonus 2023 “will start in autumn”. The money is expected to be released to people in September.

So what’s different about the bonus this time around?

One big change is that the amount will range from €55 to €220 per person. Adults receive between €110 and €220, with children getting €55 to €110.

“The climate bonus will be staggered regionally,” said the Austrian government. The climate bonus consists of a flat-rate base amount and a graduated regional compensation, the amount of which depends on the place of residence.”

For instance, adults living in ‘category 1’ urban centres with very good infrastructure, such as Vienna, will receive €110. People in ‘category 2’ (such as Graz and Salzburg) will receive €150 bonus per person, those in ‘category 3’ (such as Wolfsburg or Mittersill) will get €185 each and those in ‘category 4’ rural communities (like Mariazell, Werfen, or Sölden) will get the highest payment of €220. 

READ ALSO: Everything we know about Austria’s 2023 Klimabonus

The payment will be made as a transfer directly to people’s bank accounts for those who have received the Klimabonus this way previously or who have updated their bank information on FinanzOnline

There is no need to apply for the subsidy. For those who don’t have an Austrian bank account or their information isn’t set up online – a voucher will be sent by post. 

The Climate Ministry has said that account transfers are to be completed within two weeks – although last year it took a lot longer so it may not end up being quite as fast. 

Meanwhile, some people won’t receive the Klimabonus until spring. 

Anyone who has not yet met the requirement for registering their main residence by the deadline of July 2nd – i.e. the 183rd day of the calendar year – will get the bonus in spring 2024. This affects those people who moved to Austria in the first half of the year, as well as newborn babies.

READ ALSO: Why haven’t I received my Klimabonus yet?

Family support payment in Upper Austria

The second half of the school allowance bonus paid out by the province of Upper Austria will be transferred to families from the first week of September. More than 50,000 families in Upper Austria are receiving this support, which could be applied for online until the end of July.

The subsidy amounts to €200 per child. The payment is being made in two parts – the first half should have been transferred to accounts at the end of August.

Since the subsidies are limited to a maximum of four children, the maximum amount that families can receive for both payouts is €800.

The bonus payment is separate to the federal school subsidy of €105.80. 

Vienna housing bonus

A new housing bonus (Wohnbonus) of €200 can be claimed by people in Vienna up until the end of September 2023.

This support is intended to cushion the rising housing costs for households with lower incomes. The allowance is aimed at people receiving social benefits, and 245,000 households in Vienna are entitled to the payment.

The requirements are for one-person households to have a gross annual income of no more than €40,000 in the previous year. For multi-person households, the limit is €100,000 gross. A letter with the details should have been sent to all households by post in July.

As The Local reported, the Austrian government has announced a rent brake from 2024 to help limit rising rents. 

READ ALSO: Austria to introduce nationwide rent brake

Half monthly rents in Vienna 

The new ‘community building bonus’ (Gemeindebau-Bonus) will come into force for some tenants in the capital Vienna. 

At the beginning of September, all tenants living in Vienna’s municipal housing should receive a special payment in the form of a credit for half a net monthly rent.

Meanwhile, at the end of this year, those tenants whose rent was increased in the years 2022-2023 will receive an additional credit in the form of a payment bonus. The amount of credit is based on the extent of the increases that took place in the period. 

READ ALSO: What new subsidy payment is Vienna offering for renters?

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