Austria finalises 2027/28 budget split, awaits accompanying law

Finance Minister Markus Marterbauer (SPÖ) announced that the allocations for Austria's 2027/28 double‑budget have been fixed, with the detailed distribution – described as the "Kuchenstücke" – now set between ministries. He will outline the specifics in his budget speech on 10 June. The next step is the Budgetbegleitgesetz, which is expected to enter parliamentary review early next week.

The draft law contains a range of fiscal measures: a progressive increase in the corporate tax rate for companies earning over €1 million from 2028, an extension of the stability levy for banks, reductions to the family bonus, a higher real‑estate earnings tax, the removal of the home‑office and workplace allowances, an increase in the alcohol tax, the elimination of tax breaks for private use of electric company cars, and a new tax‑fraud package. It also obliges Ukrainian displaced persons to pay the standard consumption and insurance taxes, cuts AMS reintegration assistance for the long‑term unemployed, raises the ceiling for social‑insurance contributions, and introduces partner‑income accounting for emergency aid. Additional proposals include a possible reduction of wage‑related costs, consolidation of district courts, and tougher traffic fines. Defence spending discussions continue, notably over a consensus on the Eurofighter replacement.

Political dynamics feature the NEOS party seeking to block the accompanying law through a new judicial directive, while the ÖVP and SPÖ negotiate over measures such as employer contributions to prevent "parking" of workers at the AMS.