Relief measures for 2025

Cold progression was abolished in Austria from 1.1.2023. Social and family benefits such as the family allowance, the multiple-child supplement and the child deduction have been valorized since then. From 1.1.2025, the remaining one-third of the annual amount is to be used in particular for benefit recipients and families with children.

Full adjustment of the deductible amounts

The deductions (single-earner deduction, single-parent deduction, maintenance deduction, transport deduction, increased transport deduction for commuters, supplement to the transport deduction, pensioner deduction, increased pensioner deduction), including the social security refund and the social security bonus as well as the associated income and income thresholds, are to be adjusted 100% to the inflation rate.

Increasing and making the mileage allowance more attractive

Mileage allowance can be paid tax-free for the professional use of an employee's own vehicle. This currently amounts to € 0.42 per kilometer for cars and € 0.05 for each person transported, € 0.24 for motorcycles and € 0.38 for bicycles and e-bikes. From 1.1.2025, the kilometer allowance for cars, motorcycles and bicycles is to be set at a uniform € 0.50. This also applies to entrepreneurs who use their private vehicle for business purposes. An amount of € 0.15 is to be claimed for each person transported. In addition, the current upper limit for the mileage allowance for bicycles should be doubled from 1,500 km to 3,000 km per year.

Increasing and making more attractive the reimbursement of costs for public transport use

Employees should receive an increased transportation allowance for business trips. For business trips using public transportation, employers can reimburse the ticket costs or transportation allowances in accordance with the travel fee regulation on a non-taxable basis or employees can claim them for tax purposes. The rates for transport allowances are to be increased to € 0.50 for the first 50 kilometers, € 0.20 for the next 250 kilometers and € 0.10 for each additional kilometer.

Financial assistance for low-income households with children

To support working families at risk of poverty and exclusion, a permanent child supplement (for children up to the age of 18) in the form of a deduction for working single earners and single parents with an annual income of (currently) a maximum of € 24,500 is to be provided in the amount of € 60 per child and month from January 1, 2025. The amount is paid out for each month. The increased amount and the income limit are valorized annually.

Increase in daily and overnight allowances

Daily allowances for domestic business trips of up to € 26.40 per day are currently recognized for tax purposes as reimbursement of expenses. Overnight allowances of up to € 15 can be recognized - unless higher expenses are proven. These amounts are to be increased to € 30 and € 17 respectively.

Further measures

• Adjustment of the first five tariff limits by an additional 0.5 percentage points each
• Increase in the small business threshold to € 55,000
• Modernization and simplification of the remuneration in kind for company housing
• Valorization of the exemption limit for other remuneration