Government is planning drastic measures: rental stop and high taxes on the move!

Government is planning drastic measures: rental stop and high taxes on the move!

In a significant step for the new government coalition of the ÖVP, SPÖ and NEOS, the ministers submitted their plans for the coming months. In a meeting of the National Council on March 7, decisive decisions were made, which include a rental stop in certain areas and measures for budget consolidation. The aim is to strengthen the new government's ability to act and to cope with the upcoming financial challenges, as reported by Vol.at The focus is on the amendment of the Federal Ministry Act, which was supported by the majority in the Constitutional Committee. This adaptation enables the new minister: inside, to take over their areas of responsibility in full from April 1st. Significant changes in the distribution of department are planned: the agendas for work and business are transferred to a new Ministry of Labor, Social Affairs, Health, Care and Consumer Protection. At the same time, the department for climate protection, the environment, energy, mobility, innovation and technology is cut together considerably. Instead of taking care of energy, as before, it will only focus on innovation and infrastructure in the future. This restructuring is intended to increase the efficiency of the new administration, as stated in the report of parlament.gv.at

Budget provision and austerity measures

Since no budget has yet been decided for 2025, an automatic budget provisorium remains in force that continues the expenditure limits of the previous year. In order to ensure liquidity during this transition phase, a legal provisional is being planned to create additional flexibility. The first austerity measures were also discussed to avoid an EU deficit procedure. Among other things, these include an increase in banking and expiring sales tax exemptions for photovoltaic systems from April 2025.

In addition, there is a temporary rent stop for old construction, community and cooperative apartments for debate in order to protect tenants from further increases from April. These measures are intended to ensure that the financial burden on citizens during the inflation crisis does not increase and the government coalition also reaches its reform goals.