Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
The official entrance age to pre-primary education is 3 as of 2023. According to legal frameworks, one year of free and compulsory pre-primary education is required of all children. The net enrolment rate for pre-primary for both sexes is 85.78%.
Governance
The responsibility for financing pre-primary education is shared between the federal government, provincial (Länder) authorities, and municipalities, with the primary responsibility lying at the provincial and municipal levels. While the Federal Ministry of Education, Science and Research (BMBWF) provides overarching policy guidance for the education sector, pre-primary education (Kindergarten) is not part of the compulsory school system and is thus primarily governed and financed by the Länder. Provincial governments allocate funding, set regulations, and oversee the implementation of early childhood education policies, while municipalities are responsible for the direct operation and co-financing of kindergartens. The Federal Ministry of Social Affairs, Health, Care and Consumer Protection (BMSGPK) may also contribute through initiatives linked to social inclusion, child welfare, and family support.
Tuition-free status
One year of free pre-primary education is provided. Each state offers different forms of free ECEC services; further details are presented in Section 3.
1. Education resources to subnational governments
The main funding mechanisms involve transfers from the federal government to the provinces (Länder), which then allocate funds to municipalities. These transfers are governed by the Fiscal Equalisation Act (Finanzausgleichsgesetz), a central legal instrument that regulates financial relationships among federal, provincial, and municipal governments.
While the federal government does not directly manage or operate kindergartens, it co-finances early childhood education through earmarked grants and agreements with the provinces, particularly to support national priorities such as the expansion of early childhood education and care (ECEC) places, quality improvement, and access for disadvantaged children. These agreements, such as the 15a Agreements (Art. 15a B-VG) between the federal government and the provinces, are tools for targeting funding toward equity-related goals, including free half-day kindergarten for 5-year-olds and support for children from low-income or migrant backgrounds. The federal government granted earmarked subsidies for these purposes (EUR 552.5 million) from 2018-2022 and has plans to spend EUR 1 billion from 2022-2027.
In addition to the 15a Agreements (Art. 15a B-VG), the federal government has created the Future Fund which encourages financial equalisation. EUR 500 million per year will be made available to expand ECEC.
Provinces and municipalities may also implement their own additional equity measures, such as sliding-scale parental fees or language support programs.
2. Education resources to institutions
Subsidies for public pre-primary institutions are mainly provided by municipalities and provinces, with federal co-funding. Private institutions can also receive public funds if they meet provincial criteria, such as offering non-profit services and adhering to educational standards. In 2020, provinces transferred more than half of their payments to private non-profit organizations (EUR 674.21 million) compared with municipalities (EUR 468.7 million).
Funding is primarily based on the number of children to be cared for as well as the group sizes and the qualifications of the staff. Additional equity-focused funds target disadvantaged groups—these include language support for non-German-speaking children, fee reductions for low-income families, and support for children with special needs. Equity measures are coordinated across federal and provincial levels to improve access and quality.
3. Education resources to students and families
Each state in Austria provides different services and programmes to help families access ECEC places. Most states offer some form of free ECEC services, while Carinthia provides 100% reimbursement to families for the cost of ECEC.
- Burgenland: free half-day and full-day childcare for children up to 6 years of age
- Carinthia: 100 per cent reimbursement of parental contributions for children up to 6 years of age
- Lower Austria: free half-day childcare (7 a.m. to 1 p.m.) for children up to 6 years of age
- Upper Austria: free half-day childcare for children up to 6 years of age
- Salzburg: free half-day childcare for 3 to 6 year olds
- Tyrol: free half-day childcare for children between 4 and 6 years of age
- Vienna: free full-day childcare for children up to 6 years of age
4. Social policies and family support programmes
Parents are eligible for a universal child benefit (Familienbeihilfe), paid monthly for children up to age 18 (or 24 if in education), with higher rates for additional children and those with disabilities. They also receive the Family Bonus Plus tax credit—up to €2,000 per child under 18 (€700 for older children). Additionally, the childcare allowance (Kinderbetreuungsgeld) supports parents during leave, available as flat-rate or income-related schemes covering 365–1,063 days per child. The ministries handling these supports are Federal Ministry of Finance (BMF), Federal Ministry of Social Affairs, Health, Care and Consumer Protection (BMSGPK), and provinces and municipalities.
