The Flemish Government is close to reaching an agreement on reforming its income assessment system, confirmed Vice-Minister-President Melissa Depraetere (Vooruit) on Sunday in VTM Nieuws.
The revised system aims to stop individuals with high incomes, who artificially reduce their official salaries by using management companies, from qualifying for various financial benefits.
Depraetere highlighted a specific issue concerning study grants. She noted instances where children of single parents do not qualify for grants while children of well-paid professionals, such as surgeons or notaries, do. This occurs because only official salaries are assessed, excluding other income sources like dividends.
She argued it is “more than fair” to include extra income in evaluations. Depraetere pointed out that some people only have their wages, yet they pay higher childcare fees compared to those with higher overall incomes whose dividends are currently ignored.
The Flemish Government is still finalising the details of the reform. However, Depraetere reassured that individuals who rely solely on wages and savings accounts will not face negative consequences. “We want to encourage saving,” she said, emphasising that properties and possessions will not be included in the calculations.
The vice-minister-president stressed that the goal is to make the system fairer. “If there are loopholes, they need to be closed to ensure that support reaches those who truly need it, especially during tight budgetary times,” she stated.
The method for citizens to declare additional income is still under development and will involve consultation with the federal government. “People will be asked to disclose any extra income, and failing to do so honestly could lead to serious consequences,” Depraetere warned.
