Further resolutions on determining the incapacity for work of people with disabilities and on the Employment of Foreigners Act
Vienna (PK) – With today’s vote in… Federal Council The rent cap proposed by the ÖVP and the Greens passed its final parliamentary hurdle. This regulates and limits rent increases for category rents, benchmark rents and non-profit apartments. While the ÖVP and the Greens emphasized the relief nature of the measure, the opposition factions criticized the regulation. The SPÖ, for example, spoke of a “rent brake” that came too late, not retroactively and not to a sufficient extent. Two motions for resolutions by the Social Democrats calling for more extensive regulations remained in the minority. The Freedom Party called the federal government “fake politics” because of what they considered to be insufficient relief. The NEOS, in turn, criticized, among other things, the fact that the rent cap regulates an area that is already strictly regulated and has comparatively low rents.
The Federal Councilors also advocated that in future people with disabilities will only be diagnosed with incapacity for work at the age of 25. There was also the green light for the law on higher vocational education and for the emissions protection law for boiler systems.
Changes to the Foreign Employment Act also passed the Federal Council, which are intended to counteract the shortage of bus drivers and tram drivers. During the debate, the Freedom Party called for a package of measures against sectoral unemployment by means of a motion for a resolution, which, among other things, provides for restrictions on entry into the labor market for EU and non-EU citizens. The motion did not receive the necessary majority from the other groups.
Rent cap with standardization in tenancy law
With the one presented by the ÖVP and the Greens Rent cap The rent increases for category rents, benchmark rents and non-profit apartments should be limited. Free rental contracts should not be covered by the restriction. In the future, increases for the category rents regulated in the Tenancy Law will only take place on April 1st. The rent adjustment will no longer apply in 2024. In 2025 and 2026 the increases will be capped at 5%. In the future, the benchmark values should be increased annually and not every two years as was currently the case. For the next valorization on April 1, 2025, only the change in the CPI annual average value from 2024 compared to that from 2023 should be decisive. Here too, a cap of 5% will apply for the valorizations in 2025 and 2026. For non-profit housing, the increase is capped at 5%. On April 1, 2024, the amounts cannot increase by more than 5% compared to the last change date. From 2027, the valorization of the relevant rents should be calculated based on the average inflation of the last three years and only half of the part exceeding 5% will be taken into account in the adjustment. The regulations were approved with a majority of votes.
The federal government has been working at full speed to relieve people and help them, said Sandra Lassnig (ÖVP/K). As a result, inflation has fallen and purchasing power has increased. The rent cap will now provide further relief.
“Numbers don’t lie,” explained Matthias Zauner (ÖVP/NÖ) and referred to the increased purchasing power, the reduced inflation and the improved figures on the risk of poverty. Austria is therefore in a better position than other countries in Europe and better than “left and right populism” would like to believe, said Zauner in the direction of the SPÖ and FPÖ. Günter Kovacs (SPÖ/B) then said that the ÖVP and the Greens no longer feel each other and spoke of “arrogance” in view of the lack of relief.
Korinna Schumann (SPÖ/W) criticized the regulation as being too late, not retroactive and not sufficiently extensive as a “rent brake”. By means of a motion for a resolution introduced during the debate, which remained in the minority, she called for a legal limit on rent increases in the so-called free, non-price-regulated housing market.
“The rich cash in and the many lose,” said Sascha Obrecht (SPÖ/W), criticizing the rent cap as a “PR disgrace.” Rather, what is needed is a “comprehensive package of measures for affordable housing,” as he suggested in a motion for a resolution introduced during the debate, which remained in the minority. This includes, among other things, measures for a rent freeze and a comprehensive housing law reform with a uniform, transparent and new tenancy law. The Social Democrats are also in favor of a minimum interest rate for savings deposits and a maximum interest rate for housing and overdrafts.
Christoph Steiner (FPÖ/T) spoke of the federal government’s “fake policy” in view of the fact that, in his opinion, Austrians were not being relieved of their burden. The FPÖ is concerned with maintaining a bad mood in the country, said Harald Himmer (ÖVP/W). Therefore, they would also criticize the measures that would help people.
Karl-Arthur Arlamovsky (NEOS/W) criticized that the rent cap does not help the right people and it intervenes in sectors that are already strictly regulated and where there are comparatively lower rents. It is now feared that the supply of housing in the regulated area will become more scarce and that prices in the free area will therefore continue to rise. Furthermore, SME landlords would be deprived of financial flexibility for renovations, criticized the NEOS Federal Council.
People with disabilities: In the future, incapacity to work will only be determined at the age of 25
Currently, people with disabilities are diagnosed with incapacity to work as early as adolescence, which means that those affected do not have access to AMS services. The government has therefore made a change to the Unemployment Insurance Act proposed, which the Federal Councilors unanimously approved today. Those affected may not be required to take part in an examination of their ability to work until they reach the age of 25. You will be looked after and registered by the AMS up to the age of 25 and can take advantage of training courses. Support for the Ministry of Social Affairs (SMS) and the states in finding vacancies and clarifying special needs is also planned. If they can prove their entitlement based on employment, those affected will also be entitled to unemployment benefit.
Changes to the Foreign Employment Act
Given the shortage of local bus drivers and tram drivers, the recruitment of skilled workers from non-EU countries is made easier. The one proposed by the ÖVP and the Greens the change the Employment of Foreigners Act and the Settlement and Residence Act were approved by a majority of the Federal Council. Accordingly, in the future, a professional qualification will be equated with proof of completed vocational training or an apprenticeship qualification. There will also be relief in the area of social professions. In the future, it will be possible to issue a residence permit to attend technical schools for social professions and similar training courses.
By means of a motion for a resolution, which remained in the minority, Günter Pröller (FPÖ/Upper Austria) called for a package of measures to combat sectoral unemployment. This should include sectoral restrictions on entry into the labor market for EU and non-EU citizens based on certain criteria such as age or level of education. This is intended to counteract the Freedom Party’s negative effects of the COVID-19 crisis and the sanctions policy against Russia. In addition, long-term unemployed people with non-Austrian citizenship should be motivated to return to their home countries or move on.
“Higher vocational education” for new formal educational qualifications
The Law on Higher Vocational Education is intended to enable new opportunities for formal educational qualifications, for example in apprenticeships. The improved further training is intended to bring skilled workers more social recognition and is aimed at around 1.6 million Austrians between 25 and 64 who have completed an apprenticeship as their highest educational qualification. In addition, around 870,000 people are targeted who have acquired several years of professional experience after completing compulsory schooling. The aim is to create a consistent further training perspective on a practical basis in many professional fields and to make the decision to pursue an apprenticeship or vocational training more attractive. The government proposal was unanimously approved.
Register for emissions from boiler systems
Uniform standards regarding pollutant emissions from boiler systems as well as administrative simplifications are the goals of an amendment to the Emissions protection law for boiler systems. On the one hand, this is intended to implement an EU directive and, on the other hand, a letter from the European Commission is to be taken into account as part of infringement proceedings in this area. What is primarily required is the establishment of a register and the one-off registration of medium-sized systems with a fuel thermal output of at least 1 megawatt (MW) and – with certain exceptions in the case of aggregation systems – less than 50 MW. The government proposal was approved unanimously. (Continuation Federal Council) pst
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