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ECONOMY

Why winter tyres could be more expensive in Austria this year

Motorists need to change to winter tyres if they will be on the roads during Austria's cold season, but the switch could be more expensive this year due to the rising cost of raw materials.

Published: 21 October 2021 16:13 CEST
Updated: 24 October 2021 05:26 CEST
Car on snowy winter road
Don't forget to change to winter tyres if you will be driving in Austria this winter. Photo: Lisa/Pexels

The winter tyre season starts on November 1st in Austria, after which winter tyres are a legal requirement for all cars and trucks during wintry conditions (snow and ice) until April 15th. 

The tyre requirement is tied to the weather conditions rather than the date range, so even after November, you can use normal tyres in mild conditions.

Mechanics and auto industry leaders are reporting an increase in the cost of tyres this year.

Mario Alfreider, from Alfreider Auto Repair in Oberndorf, Tyrol, told The Local: “Prices this year are around three percent higher than last year because there is high demand and less supply globally.”

He added that despite this, there were plenty of tyres available in the region, so there was no need for any fears of a shortage.

READ MORE: Key points: Austria announces new rules for winter tourism

Michael Peschek-Tomasi, Branch Spokesman for the Car Tyre Trade in Salzburg, told ORF that winter tyres are 10 to 12 percent more expensive this year due to the rising cost of raw materials.

Peschek-Tomasi also said there are “delivery bottlenecks” for tyres that contain more steel, known as C tyres, because the global cost of steel has increased, leading to less tyres being produced.

C tyres are used on light trucks and vans, which have been popular with buyers in Austria in the past year due to the upcoming NoVA (standard consumption tax) increase.

Commercial vehicles will be more expensive to buy in Austria from May 1st 2022 when NoVA will increase. The tax rise was initially planned to be introduced on July 1st 2021 but was postponed due to supply chain delays for new commercial vehicles.

What’s behind the price rise?

Many of the world’s largest tyre plants are based in Asia and production has been impacted by new disinfection processes at facilities and Covid-19 restrictions. 

Throw in a shortage of steel due to higher prices and it has resulted in less tyres being produced globally.

Peschek-Tomasi, from the Car Tyre Trade in Salzburg, says delivery times for direct orders made to factories in Asia are currently around six weeks.

Reuters recently reported how a tyre shortage in the US is impacting farmers in Illinois during the harvest.

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MONEY

What we know so far about Austria’s new €2,000 grant for home improvements

Austria wants to heat up the real estate and construction sectors - and is offering grants to people who have had work done on their homes.

Published: 16 April 2024 16:26 CEST
What we know so far about Austria's new €2,000 grant for home improvements

Austria’s federal government had announced plans to avoid a housing crisis in the country, with measures including cheap loans, new builds and tax deductions announced, as The Local reported in February.

One of the measures announced was a so-called Handwerkerbonus, or a “tradesperson bonus,” set up to incentivise people to do more construction work and renovations in their homes. It was announced that in 2024 and 2025, anyone commissioning tradespeople would be able to claim €2,000 in grants from the federal government. 

Even though the bonus was much publicised at the time, little was known about the application process. However, Austria’s Ministry of Economics has finalised the details and guidelines for the bonus, as Austrian media reported.

READ ALSO: How Austria’s new plans to avoid a housing crisis will affect residents

Online requests from July

From July 15th, people in Austria will be able to apply for the Handwerkerbonus online through a dedicated website that will be online “soon.” People will be able to submit invoices retroactively, and any work done by a craftsperson from March 1st will be eligible for reimbursement.

According to the daily Der Standard, the online application will be “quite simple.” For reimbursement, people will have to upload the worker’s invoice and fill in their details, such as name, address, and bank account number (IBAN). An ID-Austria registration or photo ID upload will be used for identification.

The federal government is earmarking €300 million for the bonus.

How much will be reimbursed?

Householders can claim up to a maximum of €2,000 – but you can only claim up to 20 percent of the total invoice amount, as the government had announced. People can apply twice, once in 2024 and once in 2025. 

The application is also per person, so a household with two people could apply for up to € 4,000, for example. Additionally, several smaller invoices can be combined into one – with a lower limit of €50. 

READ ALSO: How self-employed people in Austria can get a €100 bonus from social security

The grants can be claimed by anyone who has had work done, you do not need to own your own home – although tenants will need approval from their landlord for any major works.

What type of work counts for the bonus?

The applications are very broad, and many types of “craftmanship” work could be reimbursed. This includes new tiles on the terrace, renovation of the façade, or new paint in the children’s rooms, as Der Standard reported. 

Labour services in connection with house construction are also eligible for subsidies under the guidelines.

“The bonus is intended to support people who have manual work carried out and also to benefit the regional economy such as installation or electrician companies, roofing companies or builders”, said August WÖginger, a government parliament member. 

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