State Secretary Eibinger-Miedl wants to make private provisions tax-advantaged

Austrian Finance State Secretary Barbara Eibinger-Miedl is pushing for tax incentives to make private pension savings more attractive. Following reforms to the first and second pillars of the pension system, statutory and occupational pensions, she views tax benefits for private provisions as the "next logical step."

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After reforms to the statutory pension and occupational pension (first and second pillars), tax benefits for private provisions would be the next logical step.

Eibinger-Miedl acknowledged that different parties within the governing coalition have varying approaches to private retirement planning. However, she intends to advocate for making private pensions more appealing during the current legislative period, potentially through tax breaks or minimum holding periods. She pointed to neighboring countries like Slovenia, Germany, Hungary, and the Czech Republic, which already offer such incentives.

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I will advocate for making it more attractive in this legislative period, for example in the form of tax incentives, a holding period, or similar.

Regarding the proposed military service reform, Eibinger-Miedl stated that the Finance Ministry is awaiting a decision on the specific model before analyzing its budgetary impact. She clarified that any increased funding needs would not be immediate, starting January 1, 2027, but would build up over several years and require planning in subsequent budgets.

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We will have a strict implementation.

When asked about which military service model would be most fiscally advantageous, Eibinger-Miedl deferred judgment, emphasizing that the chosen solution must prioritize Austria's defense capabilities and security. The expert commission has estimated that the "Stufenmodell" (graduated model) could cost between 230 to 310 million euros by 2037, while the "Österreich Plus" model is projected to cost between 170 to 250 million euros.

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The solution must be in the interest of Austria's best possible defense capability and security.