The tax rules for families with children will be changed as of January 2019. The new benefit is called “Family Bonus Plus” ("Familienbonus plus").
The previous tax benefits for families with children have been cancelled as of December 31, 2018: The child allowance (Euro 440 if only claimed by one parent, otherwise Euro 300 per parent) and the deductibility of child care costs (up to Euro 2.300 per year per child until the age of 10). Instead of these tax benefits the new Family Bonus Plus has been implemented. The Family Bonus Plus does not only reduce the tax base as the previous benefits, but reduces directly the income tax.
The Family Bonus Plus applies to every child in Austria for which the parents receive "Familienbeihilfe" ("family allowance"). The amount of the Family Bonus Plus is Euro 1.500 per year (or Euro 125 per month) until the 18th birthday of the child. After that time it is Euro 500 per year. The bonus does not work if the father or mother earns so little that no income tax is due. An exception applies to low earning single parents. For their children exists a reimbursement of Euro 250 per year as a negative tax.
The Family Bonus Plus is only valid in full for children living in Austria. For children within the EU / EWR and Switzerland the Family Bonus Plus is adjusted to the price level of the country of residence. For children in third countries taxpayers do not receive a Family Bonus Plus.
Who can claim the Family Bonus Plus
The Family Bonus Plus may be claimed either by the father or mother in full or in equal parts. This division can be made also by mutual consent of separated or divorced parents. However if one parent pays the majority of the childcare costs (at least Euro 1.000) she or he will be entitled to 90% of the Family Bonus Plus, the other parent to 10%.
The application can be done either via payroll calculation by the employer or via tax return 2019.
If you decide to receive the Family Bonus Plus via payroll please contact your employer and send him the form E 30 with your data. The current form is available on the website of the Austrian Ministry of Finance.