Austria Proposes 0.1% Loan Levy to Fund Debt Counselling Amid Rising Crisis
Austria’s debt counselling agencies have put forward a new proposal to secure long-term funding. They suggest introducing a 0.1% levy on all loans issued in the country. The move aims to address rising debt levels and provide stable support for struggling borrowers. Last year, debt counselling services helped 61,221 people, with 21,599 seeking assistance for the first time. The average debt for private individuals stood at €56,432, while former self-employed individuals owed significantly more—€105,073 on average. Unemployment and income loss were the main drivers of over-indebtedness, affecting 36.4% of clients.
The proposed bank levy would generate €35 million annually, based on an estimated lending volume of €35 billion. Currently, counselling services operate on a budget of around €25 million. Clemens Mitterlehner, managing director of the debt counselling umbrella organisation, backs the plan, pointing out that Austrian banks already earn over €300 million yearly from overdraft fees alone. Meanwhile, debt discharge rules are set to change. From July 16, 2026, the personal bankruptcy period will return to five years, up from the current three. Counsellors have criticised this as unfair, arguing that private individuals face stricter terms than active entrepreneurs.
If approved, the levy would create a dedicated fund for debt counselling. This would help services cope with growing demand while ensuring more consistent support. The change in bankruptcy rules, however, means longer repayment periods for those already struggling with debt.
