The proposal by the Chamber of Commerce and the association to pay up to 100,000 euros in tax money as a bonus for your first home is causing a lot of fuss – and criticism. Environmentalists warn against using this as fuel for soil sealing in Austria; for NEOS, the home ownership bonus is ‘pure watering can’.
Top trade unionist Josef Muchitsch (SPÖ), who presented the housing bonus together with WKO boss Harald Mahrer on Monday, hastened to explain his request in further detail on Tuesday.
“Everything still needs to be evaluated”
Certainly the “biggest and best lever” to stimulate the construction sector are housing subsidies, Muchitsch emphasizes in the Ö1 “Morgenjournal”. Especially in rural areas, creating a home for young families has become a major problem, so here too there are suggestions. “In what form, in what orientation, with what guidelines, all this still needs to be evaluated or discussed,” said the FSG boss.
On Monday there was talk of a non-refundable bonus that would cover a maximum of 20 percent of the costs, but a maximum of 100,000 euros. According to Muchitsch, the idea for the home ownership bonus came from employers and was included in the social partnership memorandum.
Bonus only for those who are better off?
The core proposal is often criticized for supporting those who can even consider buying or building a house, while others, for whom this is completely unaffordable, are left empty-handed and expected to co-finance the bonus with their taxes.
Large homes may not be eligible for financing
Muchitsch explained that it was about promoting home ownership where there were problems with external financing. The SPÖ politician emphasized that the extent and occurrence of opportunities for abuse must be taken into account. According to his ideas, a large house should not be subsidized. In short, there is a need for a comprehensive package.
The government is cautious
Such an economic stimulus package, aimed at helping the ailing construction sector, is currently being worked on by the Turquoise Green government. According to ORF radio, internal discussions are still ongoing and that is why the government parties responded cautiously to social developments. partner proposal. Criticism comes from the opposition: Philipp Schrangl, spokesperson for the FPÖ construction, wants instead to support interest rates on loans and increase federal financing for non-profit housing to one percent of GDP. The NEOS does not want a home ownership bonus, because when it comes to subsidies you have to pay attention to social accuracy, but this bonus is “pure water”, says NEOS MP Johannes Margreiter.
WWF: “Expensive and harmful to the climate”
The environmental protection organization WWF believes the proposed home ownership bonus is “not well thought out”. Such “watering can help” would indirectly promote soil sealing, criticizes WWF spokesperson for soil protection Simon Pories. “There are already more than enough environmentally harmful subsidies, so a sealing bonus is not necessary. That would be expensive, harmful to the climate and not very socially accurate,” says Pories. Instead, he calls for soil protection criteria to be anchored in the construction stimulus package the government is currently negotiating.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
