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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.

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

IN NUMBERS: What are the expenses Austrian families have in 2024?

Couples with children have expenses of over €4,000 a month in Austria, a new survey shows. With prices such as heating costs skyrocketing by 53 percent in 2024.

IN NUMBERS: What are the expenses Austrian families have in 2024?

Austrian families are facing higher living expenses, and an increased number of them are finding it challenging to repay their debts.

The monthly living expenses have increased by several hundred euros, as shown in the latest reference budget report from debt counselling services in Austria (Schuldnerberatungen), as reported by Vienna AT.

Current costs of living for Austrian families

According to the reference budget, couples with two children now face total monthly expenses exceeding €4,433, while single parents with two children face costs of €3,704, and single-person households costs of €1,730.

Compared to the 2023 reference budget, the monthly living costs for families have increased by several hundred euros. The reference budget for a household with one parent and two children is €300 more than last year.

Heating costs have seen the highest increase, skyrocketing 53 percent. Food prices are up 11 percent, and expenses for social and cultural activities have risen 10 percent. Rental costs have also jumped 8 percent.

Every month, a couple with two children (aged 7 and 14) now spends around €1,149 on food, €569 on entertainment, and €1,054 on rent and maintenance. They also budget about €212 for public transport, €285 for heating and electricity, and €117 for healthcare.

A single parent with two children (aged 7 to 14) spends about €1,021 on food monthly, €403 on entertainment, and €903 on rent and maintenance. Public transport costs the family around €121, heating and electricity about €248, and healthcare around €81.

Additionally, school-related expenses for two children cost parents around €156 per month.

People struggle to pay their debts

Johanna Steurer, project manager at ASB Schuldnerberatungen, the umbrella organisation for debt counselling services, has expressed concern over these rising costs, saying that more people are struggling at the end of the month due to the increased prices, reported Kleine Zeitung

New figures show that the high living costs have contributed to an increasing number of people becoming over-indebted, meaning they have more debt than they can manage.

“The high cost of living is becoming increasingly important as a reason for over-indebtedness,” Steurer said.

The reference budgets are calculated annually and show how much money is needed for different types of households to afford a decent life with a minimum of social and cultural participation.

The budgets assume a rented apartment and do not include regional cost differences or car expenses, which average nearly €900 monthly.

READ ALSO: How much does it cost to live in Vienna in 2024?

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