Family Allowance and Tax Credit for Children
Parents are entitled to family allowance
- if they are permanently and legally resident in Austria or if their centre of life is in Austria and
- if their child (including adopted, foster, step and grandchildren) lives with them in a household or if they mainly provide maintenance, if there is no household affiliation with either parent.
Parents are entitled to family allowance regardless of their employment or income. In principle, an entitlement to family allowance can be acquired only for children who permanently reside in Austria.
Please note: In cross-border cases within the EU, special European regulations apply to the receipt of family benefits!
Parents, grand-parents, adoptive or foster parents are the beneficiaries as well as the child itself if certain conditions are met.
The amount of family allowance varies depending on the age of the child.
General family allowance in 2023 per child and month:
- from birth 120.6 Euro
- for children over 3 years 129 Euro
- for children over 10 years 149.7 Euro
- for children over 19 years 174.7 Euro
The total monthly amount of family allowance is increased by the sibling supplement for each child. The amounts received in addition to the basic monthly family allowance are:
- if family allowance is granted for 2 children, 7.5 Euro for each child,
- if family allowance is granted for 3 children, 18.4 Euro for each child,
- if family allowance is granted for 4 children, 28 Euro for each child,
- if family allowance is granted for 5 children, 33.9 Euro for each child,
- if family allowance is granted for 6 children, 37.8 Euro for each child,
- if family allowance is granted for 7 or more children, 55 Euro for each child.
Family allowance may be granted for children who reach adult status until they turn 24 if they are in vocational training. For students, enrolment is required in this context. There are a very few reasons that can lead to an extension until the age of 25, for example community/military service, children with severe disabilities.
There is no entitlement to family allowance during periods of military or civilian service and for children for whom (ex-)spouses are obliged to pay maintenance.
The application for family allowance must be submitted to the tax office (Finanzamt Österreich).
For children with severe disabilities an increased amount of 164.9 Euro per month is paid on top of the general family allowance.
A school start allowance of 105.8 Euro is granted for each child between 6 and 15 years. It is paid with the family allowance for the month of August.
The tax credit for children ("Kinderabsetzbetrag") is transferred along with the family allowance without requiring a separate application. It is not an allowance in the strict sense of the word but a fiscal measure which is paid to all parents entitled to family allowance, as a kind of negative tax. The amount of the tax credit for children is 61.8 Euro per child and month.
Compensation for the financial burden of having a family
The Austrian system of compensation for the financial burden of having a family is conceived as a horizontal compensation structure, which means a balance between parents obliged to maintain their children and persons without maintenance obligations. Those maintenance costs, which are caused by providing for and looking after children, should be compensated for.
The central financing instrument is the Family Burden Equalisation Fund. The legal foundation is provided by the Family Burden Equalisation Act 1967.
Family benefits in the form of financial benefits and benefits in kind as well as the reimbursement of various costs are provided from the Family Burden Equalisation Fund.