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Austria – A draft law aims to reduce benefits for the parents of children resident in certain EU Member States

Written by
Schima Mayer Starlinger, a modern, service-oriented law firm in Austria.
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A draft law seeks to reduce family allowance, as well as certain tax deductions granted in Austria, for children resident in other EU Member States with a lower cost of living. Austria intends to index both benefits to the actual cost of living in the child’s country of residence. The draft is expected to be passed in the second half of 2018, despite commentators’ criticisms that it is in conflict with EU law.