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Starting from October, CO2 emitting companies will be taxed 30 euros per ton of carbon , Source: Markus Spiske / Unsplash
Climate legislation and carbon tax levies could be making the cost of living crisis even worse
This week, Austrian authorities announced they will move forward with implementing the climate and anti-inflation bonus for citizens one month in advance. While the package was set to go out on 1 October, due to the skyrocketing prices of food, fuel and energy, the aid will make its way to citizens at the start of September.
The climate and anti-inflation bonus is aimed at helping people get through a sharp rise in prices expected in October. This is because, in October, the Austrian carbon levy is set to take effect. This means that after October, every company will be charged 30 euros per ton of emitted CO2.
Government officials expect to see a sharp rise in prices for consumers, especially from industrial goods and transport companies. The tax was originally planned to take effect in March, however, enforcement was postponed for October, to avoid exacerbating the spike in prices in the spring.
Yet, conditions for consumers have hardly gotten better since then. Additionally, Austria is far from filling up natural gas storage capacities, as, according to Statista, they were at 43.17% in July. The alpine republic could be heading for a winter filled with heavy consumer price increases.
Every adult is eligible to receive at least a portion of the climate bonus if they have lived in Austria for the last 183 days. Children are also eligible for 50% of the funds if they have been dependent on their parents for the last six months.
However, people living in large urban areas are entitled to a reduced bonus. This is because, as the Climate Ministry argues, they have easier access to public transport for their daily commute.
The climate and anti-inflation bonus is aimed, primarily, at helping people who do not have alternatives for less polluting transportation. Pensioners, on the other hand, regardless of their zip code, will receive the full amount.
Additionally, the childcare bonuses will be increased to 2,000 euros per child under 18 and 650 euros per dependent child over 18. There is also a back-to-school bonus of 100 euros. Tax deductions for parents will be raised from 450 to 550 euros, paid out during the tax assessment season at the start of 2023. For low-income earners and people on welfare, there will be an additional bonus of 300 euros.
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