Around a thousand Czechs and Slovaks working in Austria with children living abroad are suing the state over new rules that will significantly lower their family allowances.
The so-called indexation of family allowance regulations came into effect at the start of this year. As a result, the value of allowances and the extent of tax relief are now based on the living costs of the country in which the child resides.
Austria also faces proceedings from the European Union (EU) over the measure. The European Commission has given the government two months to explain its move, according to the Spectator.
The Die Presse Austrian daily reported on the case of Slovak nurse, Alena Konečná, who works in Styria and is the mother of an 18-year-old daughter. Like most Slovak nurses working in Austria, she spends two weeks of the month at her job taking care of her client, an elderly Austrian.
But from January, her family allowance has been cut to €72 (US$81.62) because of the indexation. She turned to the Austrian courts as a result, claiming that the country does not observe the EU’s free movement regulations.
The Institute for Austrian and European Labour Law and Social Security Law, which operates at Vienna University of Economics and Business, reported that about a thousand other Czechs and Slovaks who live in border areas and work in Austria have done the same.
The EU has also pointed out that many workers from other countries in the trade bloc pay the same levies to the Austrian social security system and are subject to the same tax obligations as locals but now receive lower allowances because their children live in another country.
Slovakia has described the Austrian move as discriminatory from the start and in violation of the principle of equal treatment. The Ministry is waiting for the results of an evaluation of the Austrian legislation under European law, Sme daily reported.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Austria to introduce E4.5bn in tax cuts over the next three years
Around a thousand Czechs and Slovaks working in Austria with children living abroad are suing the state over new rules that will significantly lower their family allowances.
The so-called indexation of family allowance regulations came into effect at the start of this year. As a result, the value of allowances and the extent of tax relief are now based on the living costs of the country in which the child resides.
Austria also faces proceedings from the European Union (EU) over the measure. The European Commission has given the government two months to explain its move, according to the Spectator.
The Die Presse Austrian daily reported on the case of Slovak nurse, Alena Konečná, who works in Styria and is the mother of an 18-year-old daughter. Like most Slovak nurses working in Austria, she spends two weeks of the month at her job taking care of her client, an elderly Austrian.
But from January, her family allowance has been cut to €72 (US$81.62) because of the indexation. She turned to the Austrian courts as a result, claiming that the country does not observe the EU’s free movement regulations.
The Institute for Austrian and European Labour Law and Social Security Law, which operates at Vienna University of Economics and Business, reported that about a thousand other Czechs and Slovaks who live in border areas and work in Austria have done the same.
The EU has also pointed out that many workers from other countries in the trade bloc pay the same levies to the Austrian social security system and are subject to the same tax obligations as locals but now receive lower allowances because their children live in another country.
Slovakia has described the Austrian move as discriminatory from the start and in violation of the principle of equal treatment. The Ministry is waiting for the results of an evaluation of the Austrian legislation under European law, Sme daily reported.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Austria to introduce E4.5bn in tax cuts over the next three years
