The federal government is introducing a relief package to support small and medium-sized businesses. The “Medium-Sized Business Package” approved on Wednesday by the second cabinet meeting of the ÖVP-SPÖ-NEOS government includes, among other things, an increase in the base lump sum to 15% and the previously discussed abolition of receipt requirements for purchases up to €35. The government is committed to “bureaucracy reduction,” emphasized Josef Schellhorn, the NEOS Secretary of State for Deregulation.
Starting in 2025, the base lump sum will increase from €220,000 and 12% to €320,000 (13.5%), and by 2026, to €420,000 (15%). This will reduce bureaucracy, administrative efforts, and provide significant relief to small and medium-sized businesses. Additionally, from July 1, 2025, the norm consumption tax (NoVA) for all light commercial vehicles (N1) will be abolished, making company cars and transporters cheaper. “We want to do the right thing for Austria,” said Chancellor Christian Stocker (ÖVP), who believes this package will secure jobs and strengthen the economy.
Mandatory Receipts Only for Purchases Over €35
As previously announced by Economics Minister Wolfgang Hattmannsdorfer (ÖVP), the requirement to issue receipts for purchases up to €35 will be abolished. This will happen “as soon as possible,” Schellhorn clarified. However, this does not mean the end of receipt obligations; cash register systems will still operate. Furthermore, approval processes for company foundations and energy and plant law will be expedited.
“Less Bureaucracy, More Freedom”
Schellhorn’s office will also be a contact point for all Austrians on bureaucratic matters. A “Bureaucracy Report” will be presented later this year, and focus will be placed on eliminating redundancies and ensuring consistent implementation of federal laws. National and European reporting obligations will also be systematically analyzed to identify potential relief opportunities.
With this package, the government is clearly committed to strengthening the economy and supporting SMEs, Schellhorn emphasized. His motto as a businessman was “less bureaucracy, more freedom,” and he will continue to pursue this as Secretary of State for Deregulation. The location of his office in the Foreign Ministry is justified by his responsibility for foreign economic and cultural affairs. “It is clear that I am not a secretary of distrust, but a Secretary of State,” Schellhorn explained.
Positive Reactions from the Business Community
The package received positive reactions from business representatives. Several chamber spokespeople saw “numerous industry demands fulfilled.” Kurt Egger, Secretary-General of the Economic Federation and ÖVP’s economic spokesperson, praised the package: “The Medium-Sized Business Package does exactly that: it relieves businesses, makes them more competitive, and finally gives entrepreneurs more time to focus on what they do best: running businesses!” The Retail Association welcomed the package and called it an important first step. “Now it is crucial that further measures are passed to benefit all businesses,” said Managing Director Rainer Will.
ÖVP Tourism Secretary of State Elisabeth Zehetner spoke of “great relief for inns and tourism businesses.” SPÖ Finance Minister Markus Marterbauer called it a “powerful medium-sized business package.”
Criticism from the Freedom Party
Naturally, the Freedom Party (FPÖ) saw it differently. FPÖ economic spokesperson Barbara Kolm called the package “merely an unbelievable ‘small-scale’ measure.” She also found the pace too slow: “Simplified business transfers, faster approval processes, or deregulation in plant law are correct, but this should be the accessory to an even bigger effort. And that should not come in two years, but today.” She calls for the introduction of a “pathway to reduce corporate tax and income tax.”
