Unjustified termination of family benefits for families from other countries When a residence permit expires, the family allowance and child care benefits are no longer paid. This is the case even if the persons affected have properly applied for an extension of their residence permit and are thus lawfully residing in Austria. Families do not receive benefits for months Several foreign families contacted the AOB, because they had not received a family allowance for their children for months. As a result, the families found themselves in an extremely difficult financial situation. For parents of small children, it is an additional hardship that child care benefits and the associated health insurance protection are also discontinued. The reason for this is the Austria-wide administrative practice of discontinuing family benefits when the residence permit expires. Family allowances and child care benefits are paid only retrospectively, once the new residence permit has been obtained. This is the case even though the persons affected had applied to the proper settlement authority for an extension or a change in purpose of their residency in a timely manner and had submitted the confirmation thereof to the Tax Office. Residency during extension procedure is lawful This procedure does not correspond to current law: Non-Austrian citizens are entitled to a family allowance when the child and the parent who applies for it are residing lawfully in Austria in accordance with Sections 8 and 9 of the Settlement and Residence Act. This applies mutatis mutandis to child care benefits. Section 8 of the Settlement and Residence Act cites all the types of residence permits for foreign nationals. Section 9 of the Settlement and Residence Act regulates the documentation regarding residence for citizens of EU countries. Almost all residence permits are initially granted for a limited period of time. Extension of the respective residence permit must be applied for prior to expiration of its validity. Then the applicant continues to reside “lawfully in Austria without prejudice to provisions of the Aliens Police Authority until the legally effective decision regarding the application has been made” (Section 24 (1) of the Settlement and Residence Act). Entitlement to family benefits continues The legislators wanted to make it clear that foreign nationals continue to reside in Austria legally, even if the decision relative to the extension application is still pending. They retain their status temporarily. The expired residence permit thus continues to provide the 76