Despite the need to cut costs

Even more money for family benefits starting in 2028

Hardworking families are set to have more left over starting in 2028.(Bild: Markus Wenzel)

Despite sharp criticism from “budget watchdogs,” the family bonus remains in place—and there’s more: Hardworking parents are set to benefit even more from the state starting in 2028, as ÖVP Family Minister Claudia Bauer clarifies in the “Krone.”

The discussion comes at an inopportune time, is being conducted heatedly for precisely that reason—and is actually coming to an end just as quickly. For while the next two-year budget must currently be put together and the pressure to save is, as is well known, growing, it is precisely the government’s tax relief for families that has moved to the center of the political debate.

Badelt suggested cuts
This was triggered by Christoph Badelt, President of the Fiscal Council and former head of the Austrian Institute of Economic Research (WIFO). The economist is considered one of the key voices on budget issues and has insisted on compliance with fiscal rules as well as pointing out long-term financial sustainability. In this context, “budget watchdog” Badelt also brought the Family Bonus Plus into play as a potential lever—at least indirectly, by pointing to potential savings within the system.

Minister Claudia Bauer(Bild: EPA/OLIVIER HOSLET)

However, this is meeting with resistance within the government—specifically from ÖVP Family Minister Claudia Bauer (formerly Plakolm). For her, cuts are out of the question. “Anyone who questions the Family Bonus Plus is attacking precisely those families who contribute every day. These families work, pay taxes, and also take care of their children, who are enormously important for Austria’s future,” she says.

The Family Bonus Plus is one of the most effective ways to balance the needs of people without children and those with children!

Ministerin Claudia Bauer

More subsidies and childcare allowances
At the same time, she emphasizes that tax relief is not a gift from the state, but a return of what people have earned themselves. That is precisely why hardworking parents should soon receive even more from the state. “We have to save, yes. But families are the core of our society and must be the first to benefit when things start looking up again. That’s why it’s clear to me that benefits for our families will be adjusted again starting in 2028,” she explains to the “Krone.” These benefits include, among other things, family allowance and childcare allowance. According to reports, further measures for families are also being considered.