Chaos programmed – rent allowance: countries determine income limit

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The coalition reached agreement on a housing subsidy on Wednesday. The aim is to support low-income households, said Social Affairs Minister Johannes Rauch (Greens). The exact amount of the income limit is determined by the respective federal state. This can be programmed to cause chaos when cashing out.

The guidelines for housing and heating costs subsidies are already very different there. Depending on the federal state, there will also be differences in when the money reaches the people. The amount of money available for the subsidies depends on the size of the population. Vorarlberg will receive about €10 million and Upper Austria €38 million.

Wöginger expects that about one million households will benefit from this with an average of 200 euros each. The solution is “more socially just” and “more focused” than a rent control, which the government could not agree to. Not only benchmark rentals are included. The grant will now be launched “with lightning speed”, he promised.

Another bonus in Vienna
With the new decision, there could soon be two rent allowances in Vienna. Mayor Michael Ludwig (SPÖ) recently presented a “housing bonus” based on annual income. “What is good in Vienna must also be good at the federal level,” said ÖVP club boss August Wöginger.

Chamber of Labour, ÖGB and opposition criticize subsidy
Criticism, on the other hand, comes from the Labor Chamber (AK), the trade union (ÖGB) and the opposition. The opposition parties see no lasting relief. “A housing subsidy may be a short-term help for some, but it doesn’t solve the problem, it’s just a one-off payment that doesn’t counter inflation,” said Jörg Leichtfried, SPÖ vice president of the club. The rents would be a multiple of this subsidy.

The FPÖ and NEOS argued in the same way. The aid has been “counterfeited,” said FPÖ councilor Dominik Nepp. Representatives of the Labor Chamber pointed out that about two million Austrians recently stated that they feared difficulties in paying housing costs. High rents would drive inflation and lead to extraordinary profits in the real estate sector.

To receive the new grant, an application must be submitted. Housing assistance will be discussed Thursday in the finance committee, next week in the plenum of the National Council and in April in the Federal Council.

Source: Krone

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