The government today approved changes to the personal income tax law that increase tax relief for families with children. For families with three or more children, the relief reaches €15,000.

It emerged last Tuesday that the cabinet was drawing up a "Family Package Plus" with tax breaks from next year. Plamen Dimitrov, president of the KNSB trade union confederation, called the package a step in the right direction.

What happened before: Government drafts "Family Package Plus" as union KNSB wants minimum wage of at least €690

The draft adds a new relief for a child's development. It is worth €2,000 and covers health, education and sport costs.

For one child the relief rises to €5,000, and for two it is €10,000. For a child with a disability it will be €12,000.

Families can still claim the relief in advance during the tax year. The cabinet says this leaves them with more income to spend.

The changes also set rules for when companies restructure: who must file tax returns and information on income paid out, and by when, including for the automatic exchange of information. The government says this will make things clearer and give more legal certainty.

Pension insurance and insurance companies file a form for the automatic exchange of information with EU countries. Until now it was published in the State Gazette. In future it will appear on the website of the National Revenue Agency.

The draft also changes the size of fines and financial penalties in the law. Some have not changed since 2007. Under the draft, higher penalties should deter offenders and encourage people to follow tax laws voluntarily.