From 2014, the SPÖ and ÖVP want to reform family allowances if they are still in the government. The most important key points of the family package at a glance.
Vienna. The government parties rediscovered the family issue just in time for the National Council election at the end of September. On Tuesday, Chancellor Werner Faymann (SPÖ) and Vice Chancellor Michael Spindelegger (ÖVP) announced after the Council of Ministers, as announced exclusively in the "Press", that they had agreed to reform the family allowance. The funding should become more transparent, but also increase.
Family allowance (C) DiePresse
1. What changes in family cash benefits?
Funding is to be simplified (even if it is still quite complicated): Instead of six instruments, there will only be three in the future. The core of the new model is the reformed family allowance. It should no longer be available in four heights, but only in three heights. For children up to nine years there is 180 euros per month, for 10 to 18 year olds 200 euros per month and from 19 years 220 euros (see graphic).
The so-called school start fee (100 euros for school-age children in September) is no longer applicable, and the child tax credit (58, 40 euros) will be included in the family allowance in the future. The surcharges for families with several children and for children with severe disabilities remain, but will be increased: If you have two children, you will receive an additional 15 euros, for three children the surcharge will in future be 75 euros and families with four children will receive an additional 240 euros. In the future there will be 60 euros for each additional child. The surcharge for children with a severe disability is 150 euros.
2. What changes in kind in kind for families?
The funds for expanding childcare are to be increased. The focus is on facilities for 0 to 3 year olds: longer opening hours, fewer closing days, smaller groups.
3. Is it certain that the new family package is coming??
No. What Faymann and Spindelegger presented on Tuesday is “only” a punctuation – a declaration of intent. It is unclear whether the package will actually come after the choice. Just like yes also it is not certain whether the SPÖ and ÖVP will still be in the government in the next legislative period. If it is actually so, they want to implement the new package by 2014 at least. And since childcare is a national matter, the government proposals would also have to be negotiated with the countries.
4. How much would you (additionally) spend on the grants?
A total of EUR 1.2 billion will be made available for cash and non-cash benefits over the next four years. 400 million euros will be invested in childcare. According to the Ministry of Family Affairs, increasing the family allowance brings additional costs of around EUR 200 million a year.
5. Where does the family allowance money come from??
Most of the money for the aid comes from the Family Burden Equalization Fund (FLAF). He still has a mountain of debt that he has to reduce. Finance Minister Maria Fekter (ÖVP) however assured that the fund could be debt-free in 2019 despite the reform. The catch: The funds that flow into the FLAF depend to a good 95 percent on the economic situation – because they relate to employer contributions or income tax, for example. And a new economic crisis is at least not out of the question.
6. The increase makes up for the loss of inflation?
With family allowance: no. This was last increased in 2000. Since then, the inflation loss, according to Statistics Austria, has been almost 31 percent. However, the increase in the aid is not more than ten percent. With the multi-child surcharge: from three children, yes. Then the increase is 57 percent, from four children even 145 percent.
7. Why did the agreement take so long??
The ÖVP wanted more families with several Encourage children – and mainly through tax deductions and cash benefits. The SPÖ, on the other hand, focused on expanding childcare. Now that they have agreed, there is no more time for implementation, either by chance or not.
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