Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Austria is a federal republic comprising three levels of government: the central (federal) government, nine provincial governments, and over 2,000 municipal authorities. Compulsory education in Austria lasts nine years and spans both provincial and federal schools. Provincial schools (Volksschule and Mittelschule) dominate in rural areas, while federal schools (Allgemeinbildende Höhere Schule and Berufsbildende Mittlere und Höhere Schulen) are concentrated in urban regions. Additional compulsory institutions include special schools for students with disabilities and part-time vocational schools for apprentices.
Education financing is constitutionally regulated with a complex and sometimes contradictory set of laws governing the separation of responsibilities, content regulation, and financial channels. Funding is managed through a mixed system involving federal, provincial, and municipal authorities. The Federal Ministry of Education (BMB) holds primary responsibility for the content and procedural side of national education policy, teacher training, tertiary education, and curriculum standards. Provincial governments (including Vienna as both a province and municipality) oversee basic education, including pre-primary, primary, and compulsory lower secondary schools, acting as intermediaries for federal funds allocated to compulsory schools. Municipalities and regional boards of education contribute to fundingpre-primary schools and some lower secondary institutions, particularly through associations of compulsory schools. The federal government finances the majority of education costs, covering teacher salaries and national programmes, while provinces and municipalities handle infrastructure, operational costs, and regional adaptations. Financial transfers are central to the system: the federal government channels funds to provinces for compulsory schools, and provinces redistribute resources to municipalities for early childhood education. Post-2017 reforms introduced more school autonomy and educational regions to align funding with local needs, supported by federal-provincial collaboration.
OECD has illustrated the flows of public funding for public primary and lower secondary educational institutions in Austria.
1. Education resources to subnational governments
Austria employs a layered funding model in which the Financial Equalization Mechanism allocates the majority of public education funds to subnational governments, and the Federal Ministry of Education reimburses provincial governments for their teacher costs. These funds pass through nine provincial education boards, which cover teacher salaries and then pass remaining resources to over 2,000 municipalities for operational expenses like utilities and materials, as well as capital projects such as infrastructure. Municipalities also receive direct provincial funding for early childhood education. As the provincial governments have discretion about the distribution of the federal education budget, there is a high degree of variation in the provincial education structures measured by various indicators like student-teacher ratio and class-size in provincial compulsory schools.
The main equity mechanism is the federal-to-provincial transfer system, which accounts for regional differences, student numbers, and infrastructure needs. Although exact formulas are not fully detailed, reforms in 2017 emphasised “educational regions” to better match funding with local needs. For example, provinces allocate grants to municipalities considering local socioeconomic factors, such as rural or urban contexts.
2. Education resources to schools
School funding is managed across three levels: the federal government provides most funds to provinces, which allocate resources mainly for compulsory education. Provinces handle primary and lower secondary education, while municipalities handle early childhood care and education and the infrastructure of local schools, often with support by provincial transfers. The federal-to-provincial transfer system is based on factors like regional differences, number of students, and infrastructure needs. Since the 2017 education reform, funding has shifted toward “educational regions” to better address local needs. Funds for compulsory schools are allocated according to student numbers and teacher requirements.
Resource Allocation and Support for Students with Disabilities
Austria’s National Action Plan on Disability (2012–2020), led by the Federal Ministry of Social Affairs, established a foundation for more effective support for students with disabilities. It has been followed by the current National Action Plan on Disabilities II (2022–2030), in which the core principles continue to underpin Austria’s education strategy, as set out in federal inclusion guidelines The goal is to implement an inclusive education system sustainably and in accordance with the UN Convention on the Rights of Persons with Disabilities.
According to Austrian federal constitutional law, however, federal states can decide how to structure their education systems themselves, i.e., whether to promote special schools or inclusive educational settings. Under the School Organisation Act, resources are allocated based on formal disability assessments by regional education boards. Integrative classes require team teaching by general and special needs teachers. To ensure the uniform and needs-based development of an inclusive school system in Austria up to the 9th grade, the current practice of assessing special educational needs must undergo comprehensive analysis, evaluation, and reform.
Austria's SEN framework is currently grounded in the Compulsory Schooling Act. Resource allocation follows a needs-based model, with funding allocated according to students' needs. Schools receive additional teaching staff, specialised materials, and infrastructure adaptations based on the number and severity of diagnosed SEN cases among their pupils. In accordance with an agreement, the federal government reimburses the costs of remuneration for teaching positions for special education support. The municipalities are responsible for providing any additional equipment required by learners with SEN. The provinces fund special measures, such as therapeutic support and equipment, according to the Provincial Disability Acts.
3. Education resources to students and families
Schoolbook Campaign and Free Transportation
Since 1972, Austria’s Schoolbook Campaign has provided free textbooks and learning materials to students in public and publicly funded schools. Managed by the Federal Chancellery, Family and Youth Section, and the Federal Ministry of Education (BMB), the programme helps reduce families’ financial burdens and ensures equal access to learning resources. After 2020, regular programmes were set up to provide digital devices for all students starting from the 5th and 6th grades. This initiative was combined with policies to extend various forms of digital instruction. In addition to the provision of schoolbooks, free transportation to schools for all students was established in the 1970s and is still provided. This measure is also organized and financed by the family policy of the Federal Chancellery.
The BMB’s Social Aid System provides financial support to help disadvantaged students stay in school by reducing socioeconomic barriers. Regulated by the Pupils Grant Act 1983 (Schülerbeihilfengesetz 1983), it offers need-based grants, housing allowances, aid for working students, and emergency hardship funding. Additional support covers school event costs and reduces fees for boarding and full-day care, ensuring more equitable access to education.
School and Housing Allowance (Schülerbeihilfe)
The School and Housing Allowance offers need-based financial support to students from grade 10 onward in middle or higher schools who face social hardship. Eligibility extends to Austrian citizens, EEA/EU nationals, Convention refugees, and non-EU students whose parents have paid Austrian taxes for at least five years. Support is calculated based on family income, household size, and marital status.
Housing and Travel Allowance (Heim- und Fahrtkostenbeihilfe)
Housing and Travel Allowance supports students from grade 9 who must live away from home due to long school commutes or mandatory boarding (such as in forestry schools). It is need-based and calculated based on family income and contributions. Eligible students, including Austrian or EEA citizens, or those whose parents have paid taxes in Austria for at least five years, receive a boarding allowance of €2,254 per year and an automatic travel allowance of €173.
Financial Support for participation in School Events
Students in eligible secondary or higher schools can get financial aid for multi-day school trips (e.g. ski weeks, language trips) if the event lasts at least four days and they show financial need. Support covers part or all the costs and is only for specific activities, not regular school expenses.
4. Social policies and family support programmes
The Ready to Start School Programme
The "Schulstartklar!" Initiative, led by the Federal Ministry of Social Affairs and co-funded by the 2012-27 programme of EU’s European Social Fund Plus (ESF+; EC 2025) against material deprivation, provides vouchers for school supplies to low-income families receiving minimum income or social assistance, enabling them to purchase essential items for the school year. Since 2022, vouchers have replaced pre-packaged kits, offering families more flexibility to choose what their children need.
Support for Families with Disabled Children
Financed by the Family Burden Equalisation Fund and federal sources, families of children with disabilities receive enhanced family allowances, care benefits, and tax deductions for medical and therapy costs. Additional support covers school assistance, mobility, and accessibility needs. Some regions also offer extra subsidies, such as discounted transport or grants for assistive devices, helping reduce financial barriers to inclusive education.
5. School meal programmes
Austria does not have a centrally managed national school meal programme, but it participates in the EU School Scheme, providing in-school snacks such as fruits, vegetables, and milk. School feeding initiatives are decentralised, managed by individual schools or federal states, and harmonization by the Ministry of Health. Participation is by application, and nutritional standards are guided by the 2011 "Leitlinie Schulbuffet" policy, which includes limits on sugar and salt.
This profile was reviewed by Dr. Lorenz Lassnigg, Institute for Advanced Studies, Vienna, and by Stephanie Godec, Head of Education Department, Austrian Commission for UNESCO.
