Austria published the Bill on Inflation Relief for Taxpayers in 2025, known as the Progressionsabgeltungsgesetz 2025 in the Official Gazette  (BGBl. I Nr. 144/2024), on 9 October 2024.

This Act adjusts the main tariff components and deductible amounts in income tax for inflation.

Starting 1 January 2025, one of the main provisions of this VAT Act is raising the threshold for small business regulations. The VAT Act’s small business regulation limit will increase to EUR 55,000 annually. This new threshold also applies to the lump-sum income tax for small businesses as outlined in Sec 17/3a of the Austrian Income Tax Act.

Earlier, the Federal Council (Bundesrat) had approved the bill on 3 October 2024.