Environmentalists warn

“Pure watering can”: criticism of the idea for a home ownership bonus

The proposal by the Chamber of Commerce and the trade union to pay up to 100,000 euros in tax money as a bonus for the first owner-occupied home is causing quite a stir - and criticism. Environmentalists warn that this will fuel soil sealing in Austria, while the NEOS see the home ownership bonus as a "pure watering can".

The top building trade unionist Josef Muchitsch (SPÖ), who presented the home ownership bonus together with WKO boss Harald Mahrer on Monday, therefore hastened to explain his proposal in more detail on Tuesday.

"Everything is still to be assessed"
The "biggest and best lever" to boost the construction industry is certainly housing subsidies, Muchitsch emphasized on Ö1's "Morgenjournal". In rural areas in particular, however, building a home for young families has also become a major problem, which is why there are also proposals here. "In what form, in what direction, with what guidelines, that all still needs to be evaluated and discussed," said the FSG boss.

On Monday, there was talk of a non-repayable bonus that would cover up to 20 percent of the costs, up to a maximum of 100,000 euros. According to Muchitsch, the idea for the home ownership bonus came from the employers' side and had been incorporated into the social partnership paper.

Bonus only for the better off?
The core proposal is often criticized for the fact that those who can even consider buying or building a house should be subsidized, while others, for whom this is completely unaffordable, go away empty-handed and should also finance the bonus with their taxes.

Large homes should not be eligible for subsidies
Muchitsch explained that the aim is to promote owner-occupied homes where there are problems with external financing. The SPÖ politician emphasized that size and the prevention of abuse should be taken into account. According to his ideas, large owner-occupied homes should not be eligible for subsidies. Overall, a comprehensive package is needed.

Government is cautious
The Turkish-Green government is currently working on such an economic stimulus package to help the crisis-ridden construction industry. According to ORF radio, internal discussions are still ongoing, which is why the governing parties reacted cautiously to the social partners' proposal. Criticism has come from the opposition: FPÖ construction spokesman Philipp Schrangl wants to support interest rates on loans instead and increase federal funding for non-profit housing to one percent of GDP. The NEOS do not want an owner-occupied housing bonus, because when it comes to subsidies, you have to pay attention to the social impact, whereas this bonus is "pure watering can", according to NEOS MP Johannes Margreiter.

WWF: "Expensive and harmful to the climate"
The environmental protection organization WWF considers the proposed home ownership bonus to be "ill-conceived". Such "watering can aid" would indirectly fuel soil sealing, criticizes WWF soil protection spokesman Simon Pories. "There are already more than enough environmentally harmful subsidies, so there is no need for a sealing bonus. That would be expensive, harmful to the climate and socially ineffective," says Pories. Instead, he calls for soil protection criteria to be anchored in the construction stimulus package that the government is currently negotiating.