Austria slashes red tape with 113 reforms to boost small businesses by 2026
Austria’s government has announced a major push to cut red tape by mid-2026. The plan includes 113 specific measures designed to save time and money for citizens and businesses. Leading the effort is Josef 'Sepp' Schellhorn, the country’s newly appointed Secretary of State for Deregulation and Bureaucracy Reduction.
Schellhorn, a former innkeeper, unveiled the reforms alongside ministers for economic affairs and infrastructure. The package targets what he calls 'pebbles in the shoe'—small but frustrating rules that complicate daily life. Examples include strict bottle-size regulations for selling loans and the need for paper copies of documents when applying for IDs.
The first wave of changes will raise accounting thresholds for small business ideas and introduce a one-stop shop for permits. Digital processes will replace paperwork for trade registrations and ID applications. Dozens of reporting and approval requirements will also be scrapped. Schellhorn has promised further reforms, describing them as 'gravel and boulders' to be tackled next.
Public opinion polls suggest Austrians want faster, bolder changes. While the government aims to highlight and remove absurd rules, broader challenges like inflation and unemployment may limit immediate improvements in public sentiment.
All 113 measures are set to take full effect by the end of June 2026. The reforms focus on practical changes, from digital services to simplified business rules. Officials have stressed that this is only the first step in a wider effort to reduce bureaucracy across the country.
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