The Austrian government has announced a new relief package to support small and medium-sized businesses (SMEs) and reduce bureaucracy. The package, called the “Mittelstandspaket,” was approved during a ministerial council meeting of the ÖVP-SPÖ-Neos coalition on Wednesday.
One of the key measures is the planned increase in the flat-rate deduction for business expenses. Starting in 2025, the threshold will rise from €220,000 and 12% to €320,000 and 13.5%. By 2026, it will increase further to €420,000 and 15%. This change is expected to simplify administrative tasks and ease the financial burden on SMEs. Additionally, from July 1, 2025, all light commercial vehicles (N1 class) will be exempt from the standard consumption tax (NoVA), making company cars and transport vehicles more affordable.
Chancellor Christian Stocker (ÖVP) said that these measures will help secure jobs and strengthen Austria’s economy. “We aim to do what’s right for Austria,” he said.
Another important change is the removal of the receipt obligation for purchases up to €35. However, businesses will still need to use electronic cash register systems to log transactions. The government hopes to implement this reform as soon as possible.
To further reduce bureaucracy, the government plans to speed up approval processes for new businesses, energy projects, and industrial facilities. A new contact point will also be set up for citizens to address bureaucracy-related concerns.
State Secretary Josef Schellhorn emphasized that the government is committed to reducing unnecessary regulations and ensuring clear and fair laws. His office will provide recommendations to other ministries to support this goal.
