Global Daily Tax News, Austrian National Council Signs Off On Budget Measures Act 2026, (Jun 22, 2026)

Austria's National Council has recently adopted the Budget Measures Act 2026.

The 2026 Budget Measures Act is intended to support efforts to reduce the deficit. It is expected to generate savings of approximately EUR100 million by 2030, EUR85m of which will come from tax measures.

The savings will be found, among other things, through further measures to combat shell companies and by tightening exit tax regulations. In addition, travel expense allowances for public sector employees will be reduced. Fixed flat fees will be introduced for the renewal or issuance of residence permits.

The planned continuation of the tax-free employee bonus will result in an additional budget burden of EUR70m this year. However, the maximum amount for this bonus will be reduced from EUR1,000 in 2025 to EUR500 in 2026. Furthermore, the Bill clarifies that the tax exemption for holiday pay up to EUR400 also applies to employees in agriculture and municipal staff.

The Budget Measures Act 2026, which was approved by the National Council on June 10, 2026, is distinct from the 2027/2028 biennial Budget announced on the same day.