Blümel: Turnover compensation to provide unbureaucratic assistance to affected sectors
Instrument to compensate Austrian businesses subject to official closure with up to 80% of turnover
The dramatic increase in infection rates in Austria and in many countries of Europe is leading to necessary restrictions on public life and having an impact on the domestic economy. For this reason, under the leadership of the Finance Ministry, a new instrument has been developed in order to provide generous compensation in terms of a significant portion of turnover to businesses required to close or to limit operations as a result of government orders. "We need to do everything possible to save lives and at the same time also to secure economic survival. The discipline of the coming weeks will reduce the long-term damage to Austria – the preservation of jobs and the survival of companies are at the forefront of economic assistance to affected sectors," explained Finance Minister Gernot Blümel.
Key aspects of the turnover compensation
For the period during which businesses are ordered to close, Austrian companies will therefore receive compensation in a sum of up to 80% of their turnover. In order to enable this compensation to be processed as straightforwardly, unbureaucratically and swiftly as possible, it will be automatically calculated based on tax information held by the Tax Administration. Applications will be made using FinanzOnline, and the first payments will be made before the end of November. The maximum payment amount per company is capped at EUR 800,000, as approved by the EU Commission, and will be subject to deduction of certain types of coronavirus assistance already received.
Fixed cost subsidy in final stages of negotiation with the EU Commission
For businesses not directly impacted by lockdown but which are suffering substantial falls in revenue as a result of Covid-19, the fixed cost subsidy is an effective means of economic assistance. A combination of turnover compensation and fixed cost subsidy (from different periods) is also available to affected businesses.
An economic-policy feat – numerous pillars to ensure a strong economy
Through the hardship fund, loss carryforwards and income smoothing, as well as the investment premium, state-backed loans, introduction of declining-balance depreciation for wear and tear, the reduction in value added tax and additional measures such as tax payment deferrals, the government has already performed an economic-policy feat enabling us to get through this crisis together. Now, a further assistance package is needed which will be processed swiftly and simply so as to keep businesses in affected sectors afloat. "We cannot undo this crisis, and so it is all the more important for us to devote all our efforts towards countering its effects," added Minister Blümel.