Austria to implement changes to Familienbonus Plus in 2027

Starting in 2027, Austria will introduce changes to several family financial supports as part of government austerity measures for the 2027 and 2028 budgets.

The Familienbonus Plus, a tax credit for families with children, will undergo significant restructuring for children aged four and older. Currently, one parent can claim the full tax benefit, which is up to 2,000 euros annually for children under 18. Under the new rules, the bonus must be shared between parents in specific ratios, such as 75:25 or 50:50. This means a single parent who previously claimed the full 2,000 euros may only be able to claim a maximum of 1,500 euros if the 75:25 split is applied, potentially reducing the total benefit available to the household if the other parent does not pay sufficient income tax.

For children under the age of four, the existing sharing options will remain, allowing one parent to claim the full amount or for parents to split it 50:50. Exceptions are expected for single parents and certain families with multiple children under four living in the same household.

Additionally, the Familienbeihilfe and Kinderbetreuungsgeld will not be adjusted for inflation in 2027 or 2028. While the nominal amounts remain the same, the real value of these benefits is expected to decrease due to rising living costs. These changes are intended to reduce the burden on the Familienlastenausgleichsfonds (FLAF), the fund that finances various family support measures.