Vienna, 25.10.2016 Economic package offers new investment incentives

At the most recent October meeting of the Austrian cabinet, the Council of Ministers, the federal government adopted a new economic package, the next major reform package which serves primarily to boost the economy and create new jobs. "I don't think there is anyone left any more who does not want to invest. We simply have to offer investment incentives. As a result of the measures adopted, Austria is now well positioned," declared Hans Jörg Schelling, Austria's Minister of Finance. 

The cornerstones of the economic package, which is primarily a comprehensive investment package, consist of an SME investment growth programme as well as an investment programme for local authorities. "We acknowledge our clear objective as being the promotion of private and public investment, thereby supporting job creation," added Schelling. 

Specifically, the package of measures provides 175 million Euro. Firstly, a direct subsidy towards investment growth will be introduced for small and medium-sized enterprises, if they make new investments or higher investments than in the three previous years. Through this investment growth premium, approximately 10,000 businesses will be supported, consequently triggering investment growth of approximately 1.2 billion Euro, which in turn means the creation and securing of 25,000 jobs.

Secondly, local-authority investment projects will be subsidized. The public-sector investment programme is intended to support investment by local authorities for the purpose of infrastructure modernization. 

Additionally, the plan is also to further evolve the Red-White-Red Card, which entitles qualified migrants from non-EU countries to settle in Austria for a limited period and to enjoy unrestricted labour-market access. 

Furthermore, an increase in the research premium has been agreed with effect from 2018, intended to stimulate investment in research and development. The plan is also to further optimize the realm of corporate financing.