Austria's economy is on the move: Hattmannsdorfer announces reforms!

Austria's economy is on the move: Hattmannsdorfer announces reforms!

Significant changes are imminent in Austria, which particularly affect small and medium-sized enterprises (SMEs). Economics Minister Wolfgang Hattmannsdorfer (ÖVP) has already presented a comprehensive relief package as an initial measure. From April 2025, educational leave will be abolished, while new regulations to reduce bureaucracy will come into force from July 2025. These measures are part of a larger reform plan aimed at strengthening the competitiveness and performance of the Austrian economy, such as 5min.at reported.

One of the key innovations is the abolition of the standard consumption tax (NoVA) for light commercial vehicles in class N1, which is particularly helpful for small companies. In addition, the obligation to print out receipts for amounts up to 35 euros will be abolished in order to reduce the so-called “paperwork”. These reforms are intended to significantly reduce administrative costs Kosmo.at reported. These measures affect around 579,500 companies, which make up 99.7 percent of all entrepreneurs in Austria and secure over 2.5 million jobs. Further comprehensive reforms are planned by 2026 and 2027, including simplifying business transfers and speeding up approval processes.

Significant reforms for SMEs

In addition to the abolition of the requirement to print out receipts, the limit for the basic flat rate will be raised to 320,000 euros and is even expected to rise to 420,000 euros in 2026. These steps are clearly designed to minimize bureaucratic effort while at the same time offering companies more freedom. Hattmannsdorfer emphasizes that these reforms are just the beginning of getting Austria's economy “back on the fast track”. A strong commitment to supporting entrepreneurship and preserving jobs is therefore evident. The Austrian government is determined to further improve competitive conditions in the coming years.