Government Program 2025 – 2029 published! (Part 2 – Legal)

The new Austrian government has been sworn in and has already presented its new government program for the upcoming legislative period. In the following, we provide a brief overview of the legislative changes and other measures the new government is planning for the upcoming legislative period in the different areas.

Data protection, cybersecurity, AI, media and competition law
Data protection

• Review and, if necessary, recodification of data protection provisions in connection with health data.
• Creation of a department for employee data protection in the data protection authority with appropriate resources.

Cybersecurity

• Establishment of an Austrian Cyber Competence Center - AT3C - to meet NIS2 and the civilian challenges of cyber security.
• Development of an Austrian cyber security strategy (ÖSCS 3.0.).
• Directive-compliant implementation of the NIS2 Directive and establishment of the planned cyber security authority in a new authority.
  
   

Artificial intelligence

• Creation of an AI strategy and commitment to rapid implementation of the AI Act.
  
  
• Establishment of the AI authority within the Austrian Regulatory Authority for Broadcasting and Telecommunications (RTR).
  
  
• Spread of AI applications in the public sector.
  
  
• Creation of regulations on disinformation, deepfakes and other activities that endanger democracy.

Media law

•  Mandatory AI labeling, for example in the media sector in editorial content or for AI-generated images and general measures to make AI applications visible.
  
  
• Increased regulation and control over digital platforms by strengthening responsibility for moderation and deletion obligations, combating disinformation and deep fakes and introducing "must carry" and "must be found" provisions.
  
  
• Further development of the funding structure in the media sector.

Competition law

• Commitment to the further development of EU competition law and the elimination of unjustified territorial supply restrictions within the internal market.
  
  
• Improvements in competition control by strengthening the staffing of the Anti-Trust-Court (Kartellgericht), expanding the resources of the Competition Commission (Wettbewerbskommission) and strengthening the independence of the Austrian Federal Competition Authorities (BWB).
   

Affordable housing
Construction

• The government is actively promoting the construction industry to support the construction and renovation of housing, with a clear focus on creating affordable housing.
  
  
• A functioning construction and real estate sector is recognised as economically important because it contributes to job creation and the maintenance of economic strength.
  
  
• Sustainable and efficient construction: In order to reduce housing costs, an evaluation of the existing building regulations should be carried out to reduce cost-driving requirements.
  
  
  • Regulations for construction and renovation should be reviewed on the basis of a cost-benefit analysis, with the federal and state governments working together to minimise bureaucratic hurdles.
    
    
  • In dialogue with practitioners from the construction industry and technicians, a simplification of building standards is sought while maintaining the protection standards.
    
    
  • An examination for better commercial use of historic buildings is initiated to make better use of potential in the existing building stock.
     
• Legal clarification: Legally enshrined, practical definitions of the terms ‘rules of technology’ and ‘state of the art’ are to be created in order to standardise the interpretation of these terms and simplify the construction process.
  
  
• Simplification of building procedures: Measures to accelerate building permit procedures are to be introduced, in particular by implementing digitisation projects such as the ‘digital file’, which is designed to improve communication and coordination between authorities and property developers.
  
  
• Earmarking of housing subsidies: The government is committed to reintroducing the earmarking of housing subsidies in order to ensure secure and long-term financing of housing construction.
  
  
• Evaluation of the housing package: The aim is to continuously evaluate the current housing package in order to examine further measures to promote housing on this basis, including with regard to municipal housing.
  
  
• New financing instruments: The creation of new financing instruments for housing investments is being examined with the aim of enabling long-term loans and stable housing costs.
  
  
• Innovative construction concepts: The government is promoting innovative and new construction concepts to increase diversity in the building sector and to create housing solutions that meet current and future needs.
  
  
   

Renovation and decarbonisation

• Promoting renovation and decarbonisation: The government is committed to promoting renovation and decarbonisation measures in residential construction in order to reduce energy consumption and create more sustainable housing solutions.
  
  
• Fair solutions for all parties involved: The (residential) legal framework is to be adapted to provide fair solutions for lessees, lessors and flat owners without jeopardising the rights of the individual parties.
  
  
• Thermal renovation and heating replacement: Tax incentives and funding programmes are to be further developed to support thermal renovations and the replacement of heating systems. These should effectively and purposefully contribute to lowering energy consumption and reducing CO2 emissions.
  
  
• Renovation offensive: A comprehensive review of the implementation of a renovation offensive will be initiated with the aim of creating more high-quality living space, in particular through tax and legal measures for the renovation of existing buildings.
  
  
• Municipal heating planning: Municipal heating planning, including the expansion of district heating systems, is to be designed in a transparent and forward-looking manner in cooperation with local authorities in order to facilitate long-term investment decisions.
  
  
• EU Energy Performance of Buildings Directive: The EU Energy Performance of Buildings Directive should be transposed into national law in a timely manner in order to provide federal states and municipalities with planning security and to promote the integration of sustainable energy sources.
  
  
• Property Development Contracts Act: The Property Development Contracts Act will be amended to make it easier to renovate existing properties. This includes the expansion to instalment plans for renovation measures and the promotion of redensification as well as the preservation of buildings worthy of protection.

Land use policy

• Sustainable land use policy: The government pursues a balanced and sustainable land use policy that includes both the economical use of land resources and the mobilisation of building land. The aim is to achieve appropriate land prices and to reduce land consumption.
  
  
• Use of pubic plots of land: Companies in which the federal government holds a majority interest are to be encouraged to use unused plots of land for subsidised housing, schools, sports facilities and other social and infrastructure facilities.
  
  
• Priority is to be given to land recycling rather than to new designations.
  
  
• Renovations are to take precedence over new buildings.
  
  
• Building rights and ownership: The aim is to keep the real estate portfolio in public hands and to award it preferably by building rights. This is to be implemented by means of legal requirements in the respective property law.
  
  
• Strengthening the town centres: Measures to strengthen the town centres are to be taken in cooperation with the local authorities. This includes increasing building density, improving infrastructure and promoting flexible changes of use.
  
  
• Reduction of soil sealing: A clear strategy will be developed to minimise the new sealing of soil, reduce building land overhangs and promote unsealing measures. The aim is to promote the economical use of land.
  
  
• Land consumption and utilisation: The federal government aims to establish a uniform definition of ‘land sealing’, ‘land utilisation’ and ‘land consumption’ in order to make the concepts comparable and transparent nationwide.

Subsidies

• Coordination and transparency: The government wants to better coordinate housing subsidies, make them more transparent and align them more effectively with the target groups. Duplications and contradictions in existing funding programmes are to be eliminated.
  
  
• Evaluation of funding programmes: An overall evaluation of federal funding and an audit of existing state funding will be carried out to avoid duplicate funding and possible subsidies in the areas of construction, housing and housing costs.
  
  
• Housing First: The government is committed to supporting the ‘Housing First’ principle, which aims to sustainably combat homelessness by ensuring access to housing independently of other social problems.

Property acquisition

• Facilitating access to property: The government is committed to facilitating access to home ownership, particularly for young people, by examining a variety of financing models.
  
  
• Evaluation of funding programmes: The existing funding programmes of the federal states, particularly for young buyers, are to be evaluated in order to facilitate the acquisition of home ownership. The aim is to create clear and transparent financing options.
  
  
• Uniform federal housing loan programme: A uniform federal housing loan programme for young people could be created, developed in collaboration with financial institutions and enabling more affordable financing through annuity subsidies.
  
  
• Revision of the home loan and savings scheme: A review of the home loan and savings scheme and the structure of the building societies is being undertaken to improve their efficiency and effectiveness.
  
  
• Examination of the abolition of state additional fees and land transfer tax (GrESt) when purchasing a first home.
  
  
• Land transfer tax: closing the gap in land transfer tax with 1 July 2025 in order to record large real estate transactions (share deals) more effectively for tax purposes (e.g. by cumulating associated buyers)

Non-Profit Housing Act (WGG)

• Promotion of non-profit housing: The WGG will continue to be strengthened as a central instrument for affordable housing construction. The government is committed to making the calculation of purchase prices for flats in the non-profit sector more transparent and comprehensible.
  
  
• New ownership models: In addition to the existing models for acquiring ownership, new possibilities are to be created, such as the model ‘rent with purchase option’ combined with voluntary savings by the lessees.
  
  
• Decarbonisation in non-profit housing: The challenges of decarbonisation in non-profit housing are recognised and a model is being developed that keeps the financial burden on lessees low.
  

Affordable rents

• Strengthening the legal framework for tenancy law: The government is committed to creating fair and transparent tenancy law provisions. The aim is to promote a stable relationship between tenants and lessors.
  
  
• Harmonisation of tenancy law provisions: Clear rules are to be introduced to decarbonise the housing stock and improve legal certainty in tenancy law.
  
  
• Rent formation and renovation: Rent formation will be reformed to take greater account of energy-related measures to improve buildings. A bonus-malus system is being considered to reward or penalise energy-efficient renovations when setting rents.
  
  
• Minimum fixed-term for lease agreements of 5 years
  
  
• Limiting rent indexation: Inadequate and existing value maintenance agreements are to be clarified and a statutory value maintenance for the entire residential sector is to be created
  
  
• On the basis of the CPI, a new index for residential property rental is to be created, which is set at a maximum of 3 per cent and, in the case of higher inflation rates, with a half-and-half rule for lessees and lessors
  
  
• For the full scope of application of the Austrian Tenancy Act (MRG) as well as for rents subject to the Austrian Non.Profit Housing Act Act (WGG), rent indexation based on the CPI is suspended for 2025, set at a maximum of 1 per cent for 2026 and 2 per cent for 2027. From 2028, the new index for residential property rental will apply.
  
  
• Claims for repayment of rent payments due to legally invalid indexation or main rent adjustment agreements will be limited to five years (time limit of three years from the time of becoming aware of the legal invalidity and the claim for repayment).
  
  
• Drafting of a standard lease agreement by the Ministry of Justice

Corporate law

Formation policy, start-ups and amendment of the commercial register law

• Significantly accelerated and purely digital formations are to be made possible and the system is to be made resistant to abuse (target time: 5 working days). 
  
  
• The “flexible corporation”, which has existed as a new corporate form since January 1, 2024, is to be evaluated and, if necessary, further developed. 
  
  
• An amendment to the company register law is planned to align it with international standards. In particular, the submission of English documents should also be permitted in the future, which would lead to a significant simplification and cost savings for companies in practice. Basic information from the online company register should continue to be accessible free of charge.
  
  
• The requirement for the notarial deed should be evaluated “while maintaining legal certainty and avoiding bogus companies”.

Debureaucratisation

• For companies in Austria, corporate reporting requirements, in particular for SMEs, are to be significantly reduced. 
  
  
• The administrative burden is to be reduced by regularly reviewing existing regulations and avoiding redundancies. 
  
  
• The development of a one-stop shop in connection with the once-only principle should ensure that companies do not have to submit the same data to the authorities multiple times.

Foundation law

• The economic importance of the Austrian private foundation is explicitly recognized in the government program. 
  
  
• The foundation law is to be reformed, particularly with regard to ensuring functioning governance, although no specific measures are mentioned. It is to be hoped that the modernization and liberalization of the foundation law, which has been repeatedly called for in recent years, will be tackled. 
  
  
• An increase in the foundation entrance tax to 3.5% and the intermediate tax to 27.5% is planned.

Trade law

• The trade law is to be modernized and the trade regulations are to be clearly structured into two parts – professional law and operating facilities law.
  
  
•  Business registration is to be digitized, made faster and less complicated, for example, by expanding the GISA and simplifying the validation of evidence.

Labour and social affairs
Labour market

• Educational leave is to be reformed to enable targeted higher qualification. Stricter requirements shall apply and a direct follow-up to parental leave shall be excluded.
  
  
• A qualification offensive shall particularly promote sustainable, digital and technical occupations, with a special focus on the promotion of skilled workers, nursing occupations and the increased integration of women in craft and technical occupations.
  
  
• For the unemployed, especially the long-term unemployed, adjustments to the rules for additional income from minor employment are being examined.
  
  
• Labour migration is to be optimised by modernising and accelerating the Red-White-Red Card and the list of shortage occupations.

Labour law

• New working time models, including models such as the four-day week and trust-based working hours, are to be tested in pilot projects with the involvement of the works council and with scientific support.
  
  
• The density of regulation in labour law is to be reviewed in order to achieve a simplification of the regulations.
  
  
• Sick leave controls will be designed more risk-oriented and efficient.
  
  
• In order to expand part-time employment in a targeted manner, legal incentives are to be created.
  
  
• Legal certainty shall be increased by means of non-controversial provisions in collective bargaining agreements on notice periods, a clarification of the legal situation regarding weekend rest and further training, and by simplifying and adapting remote working. In addition, it shall be examined to what extent collective bargaining agreements can be applied to employee-like persons.
  
  
• Proceedings before the labour and social courts shall be expedited.

Wage and social dumping

Combating wage and social dumping shall be strengthened by more efficient controls, measures against underpayment and the circumvention of controls, as well as improved overtime pay. At the same time, bureaucratic hurdles for international workers shall be reduced.

Employee protection

• Employee protection is to be modernised to ensure good health until retirement. Special regulations are to be introduced for outdoor workers.

Social work

• In the field of social work, the aim is to create a uniform professional law that shall provide more university places and a clear regulatory framework.

Social support

• In social support, standardised benefit rates for single people and households are to be defined, a daily rate for people capable of work with "integration assistance" is to be introduced, and a standard supplement for children and an increase in the family allowance are planned.
  
  
• Social assistance recipients who are able to work are to be integrated into the Public Employment Service Austria (Arbeitsmarktservice, AMS) system through training and job placement.

Retirement and pension

• To encourage employment in old age, training measures and workplace adjustments for older employees are to be supported.
  
  
• The corridor pension is to be reformed by raising both the required insurance years and the retirement age. From 2026, a partial retirement with flexible transition arrangements is to be introduced.
  
  
•  Disability and occupational invalidity pensions are to be made more flexible by involving the AMS more closely and improving rehabilitation.
  
  
• Social innovation and old-age provision are to be strengthened by further developing the second and third pillars of the pension system, by introducing a general pension fund contract and by restructuring the "new severance pay".

Banking | Finance
Planned reforms in the areas of insolvency law, capital markets and investment funds

• The government program provides for a possible reform of insolvency law, in particular with regard to an extension of the grounds for appeal. 
  
  
•  Introduction of a collateral register for movable assets, which could facilitate the provision of collateral (e.g. non-possessory pledge for movable assets).
  
  
• Commitment to a stable and strong financial market with fair regulation, transparent rules and strong and independent financial supervision, including a deepening of capital markets throughout Europe (capital markets union).
  
  
• Amendments to the Investment Fund Act (ImmoInvFG). An amendment to the ImmoInvFG came into force on January 1, 2022. From January 1, 2027 at the latest, a minimum holding period and a return period of 12 months each will apply to Austrian real estate funds. In addition, the introduction of a “hurdle rate” is planned, below which the return period does not apply. This is a measure that is intended in particular to promote the creation of living space.

Civil Proceedings

• Enhancing Austria's competitiveness as an arbitration venue: Adjusting arbitration regulations to avoid legal uncertainties (particularly § 617 ZPO).
  
  
•  Strengthening commercial jurisdiction in an international comparison, including assessing the increased use of English as a language of proceedings.
  
  
• Evaluating court and judicial administration fees to ensure access to justice.
  
  
• Eliminating unnecessary formal requirements that lack protective functions.
  
  
• Digitizing the judiciary (standardized processes for electronic file access, publication of final instance decisions, etc.).

Product law & public law
Tobacco product

• New alternative tobacco products, such as nicotine pouches and e-cigarettes, will be subject to the tobacco or nicotine tax from 2026.

Energy sector

• Implementation of the “lighthouse projects” of the Renewable Energy Expansion Acceleration Act (EABG), the Electricity Industry Act (ElWG) and the Renewable Gas Act (EGG) by summer 2025.
  
  
• Ensuring the transformation of the energy system.
  
  
•  Creating a timely legal framework for the modernization of the energy system.
  
  
• Fostering targeted innovation and increasing competition.
  
  

Austrian Trade Law

• Division into two separate and distinct laws: industrial plant law and personal trade law.
  
  
• On the premise of reducing bureaucracy.
  
  
• (AI-based) standardized national rating systems.

Environmental impact assessment

• Discontinuation of the “normal” approval procedure – only application of the simplified approval procedure from now on.
  
  
• Formation of citizens' initiatives should potentially be made more difficult – thus possibly accelerating the process.
  
  
• Fully concentrated approval procedure also for high-performance routes and federal highways.

Public procurement law

•  “Europe-First” approach: preferential treatment of EU projects when awarding funding and contracts.
  
  
• Consideration of economic benefits – focus on strengthening domestic companies.
  
  
• Higher thresholds for direct awards including a valorization.
  
  
• The Regulation on the Threshold Values is to be incorporated into public procurement laws.

Conclusion

The government program provides an insight into the cornerstones of the planned adjustments in the different areas, although the specific legislative implementation of the government program must be awaited. We will provide information on the specific legislative proposals without delay.