Austria's parliament has approved the 2027–2028 Budget, introducing tax measures and broader reforms affecting businesses, households, public administration and infrastructure.

RF Report

Austria’s parliament (Nationalrat) approved the Budget for 2027 and 2028 on 10 July, including the Budget Accompanying Act 2027–2028 (Budgetbegleitgesetz 2027–2028), which introduces a range of tax measures.

  1. Financial and tax reforms

The Budget detail several significant changes to the Austrian tax and financial landscape:

  • Parcel tax : A new tax is introduced for the delivery of parcels from mail-order businesses. Starting 1 October 2026, a tax of EUR 2 per parcel will be charged to “mail-order retailers” whose domestic turnover exceeded EUR 100 million in the previous year.
  • Corporate tax : While the standard corporate tax rate remains at 23%, a higher rate of 24% will be introduced for income exceeding EUR 1 million starting in 2028.
  • Alcohol tax: The alcohol tax rate will increase to EUR 1,560 per 100 liters of pure alcohol, effective 1 January 2027.
  • Income tax adjustments:
    • Employees can claim up to EUR 300 annually for ergonomically suitable home office furniture (e.g., desks, chairs, lighting) starting in 2027.
    • The Family Bonus Plus rules are adjusted regarding how the bonus is split between parents depending on the age of the child and who receives family allowance [68–73].
  • Stability levy for banks: The rates for the stability levy on credit institutions are adjusted for 2027–2029 (0.033% to 0.041%) and set for 2030 onwards (0.024% to 0.029%).
  1. Social affairs, labor, and pensions
  • Pension adjustment 2027: For the year 2027, pensions will be increased by 2.95% for monthly pension incomes up to EUR 6,930. For incomes above this threshold, a flat increase of EUR 204.44 will apply.
  • Maximum contribution base: The maximum social security contribution base (Höchstbeitragsgrundlage) is specifically adjusted and increased for 2027 and 2028.
  • Labor market policy: Employers must continue to pay their share of unemployment insurance contributions for older employees who are no longer personally subject to unemployment insurance, until they reach pension eligibility.
  • Unemployment benefits: Stricter measures are introduced for individuals caught working while receiving unemployment benefits without prior notification to the AMS, including a mandatory six-week benefit reclamation.
  1. Family and education
  • Family allowance fund: Effective January 1, 2028, the Family Allowance Fund will receive an annual allocation of EUR 1.3 billion from income tax revenue. The contribution rate for employers to this fund is set at 2.7% starting in 2028.
  • University funding: The Ministry of Education and the Ministry of Finance are tasked with re-evaluating and re-setting the total funding and budget pillars for universities for the 2025–2027 performance agreement period.
  1. Environment, climate, and agriculture
  • Forest and water resilience Act (Wald-Wasser-Resilienzgesetz): A new law is established to accelerate adaptation to climate change, improve the resilience of forest ecosystems, and enhance the ecological state of water bodies.
  • Forest resilience fund: The existing Forest Fund is renamed the “Forest Resilience Fund” (Waldresilienzfonds), with EUR 54 million in federal funds pledged for 2027 and 2028.
  • Environmental support: Funding frameworks for environmental measures, including thermal renovation, switching to climate-friendly heating, and industrial transformation, are extended and increased for the period 2027–2031 [168–174].
  1. Justice and media
  • Civil law reform: The bill abolishes “judicial wills” and the judicial recording of last wills, shifting these functions more exclusively to private or notarial processes.
  • Court fees: Various court fees are adjusted, and a new fee is introduced for cases where an appeal is announced but then not actually filed.
  • ORF reform: The Austrian Broadcasting Corporation (ORF) is required to implement “structural measures” to substantially reduce its cost base in personnel, material costs, and production efficiency to ensure a balanced budget.
  1. Infrastructure and mobility
  • SCHIG renaming: The Railway Infrastructure Financing Company  is expanded and renamed to “Schieneninfrastruktur-Dienstleistungsgesellschaft mbH”. Its tasks will include the procurement and management of regional bus lines and “Rolling Road” (Rollende Landstraße) freight services.