Increase in Financial Aid for Companies in Austria Introduced

Austria's Minister for Finance Gernot Blümel has introduced an increase of finanical aid for Austrian companies.

"For a year now, we have been fighting the effects of the crisis with all our strength and have set up numerous aids to support companies in the best possible way. In total, we have currently committed or paid out more than EUR 33 billion in aid. In terms of GDP, Austria is among the European leaders in terms of spending. Only in direct aid have we paid out more than 1.3 percent of GDP in Austria," said Finance Minister Gernot Blümel.

Without aid, according to calculations by the Austrian Institute of SME Research, around 50 percent of companies would be in the red; with aid, the figure is only at 27 percent.

Aid has reduced the number of companies with suspected insolvency by over 60 percent from 22,000 to around 8,500. Short-time work protected more than one million jobs at the height of the crisis.

Increase of turnover loss bonus

In order to give companies some quick liquidity in March, the turnover loss bonus for this period will be increased:

Instead of 15% turnover loss bonus, 30% can be applied for. Together with the 15% advance on the fixed cost allowance, 45% of the sales shortfall can thus be applied for. In addition, the upper limit for the turnover loss bonus for this month is increased from EUR 30,000 to EUR 50,000. This means that up to EUR 80,000 in turnover loss bonus and advance on the fixed cost subsidy can be applied for.

The increased bonus for March can be applied for from April 16 via FinanzOnline.

Vacation days during short-time work will be compensated

To compensate for vacation days during short-time work, which normally cost employers, companies who have been closed continuously since November receive a one-time payment of up to EUR 825 as a short-time work bonus.

These employers comprise mainly restaurants, accommodation, and theater.

For employees, in those businesses that take advantage of this option, there is a one-time EUR 175 from their employer. Including taxes and duties, the short-time allowance is up to EUR 1,100 per employee.

"With the downtime bonus, we launched a very effective and broad-based assistance program in February. In the first 3 weeks, we have already paid out more than 24,000 applications in a volume of EUR 173 million. Now the turnover loss bonus for the month of March is being increased. This means that up to EUR 80,000 in turnover loss bonus and advance on the fixed cost subsidy can be applied for," sums up Finance Minister Gernot Blümel.