Analyses upon request

This analysis, in response to a request from Member of Parliament Andreas Hanger (ÖVP), examines the redistributive effect of the Austrian tax and transfer system, the distributional effects of the support measures adopted since 2019, and the development of real disposable income from 2019 to 2024. In addition, an international comparison is made of both the extent of the redistributive effect of taxes and transfers and the real income development. The Austrian tax and transfer system shows a high degree of redistribution in international comparison. The total income of the top income quintile is nine times higher than that of the bottom quintile before redistribution, but only just under four times higher after redistribution. Real disposable income in 2024 was on average above the 2019 level, although in 2022 and 2023 it was lower than in 2019 in some middle and upper deciles.

The analysis is available only in German.

At the request of Member of Parliament Hubert Fuchs (FPÖ), the Budget Office examined the tax ratio and the burden on the labor factor in Austria and also made international comparisons. The tax ratio amounted to 43.5 % of GDP in 2023, with taxes attributable to the labor factor amounting to 23.7 % of GDP. This means that both the overall tax ratio and the share of taxes on labor in GDP were above the EU average. The Austrian tax and transfer system has a high marginal and average tax burden in most income areas, as well as a number of discontinuities. This results in negative incentives to work.

The analysis is available only in German.

At the request of Karin Doppelbauer (NEOS), Member of Parliament, the Budget Office calculated the costs of various education reform proposals. Federal funding allocated to selected existing measures was estimated at 532 million Euros per year, which equals approximately 459 Euros per student. The requested cost estimates focus on proposed reforms, including the reduction of class sizes in elementary education, adjustments of salaries, and increased funding for additional support staff in schools.

The analysis is available only in German.

Jakob Schwarz (Grüne), Member of Parliament, asked the Budget Office to analyze the distributional effects of the compensation for bracket creep for the period 2023 to 2025. The distributional effects of the actual progression adjustment were compared with those that would result from an automatic full adjustment of the parameters of the tax code. The implemented progression adjustment led to greater relief in the lower income deciles, while the relief in the upper deciles would be slightly higher with an automatic full adjustment. The differences are small in the middle income deciles.

The analysis is available only in German.