Introduction
Article 2 of the Austrian Federal Constitution (Bundes-Verfassungsgesetz, abbrev. B-VG) defines Austria as a federal state. Austria has a bicameral system, composed of the Nationalrat (National Council) and the Bundesrat (Federal Council). Both chambers can initiate legislation. The Nationalrat is elected by universal suffrage and has a proportional system. The Bundesrat is composed of representatives of the different Länder. The representatives of a Land in the Bundesrat are elected according to proportional representation by the Landtage (legislative assemblies at regional level).
Levels of self-administration:
Austria has
- 9 Länder (also called Bundesländer – federal states: Burgenland, Carinthia, Lower Austria, Upper Austria, Salzburg, Styria, Tirol, Vorarlberg and Vienna),
- 94 Bezirke (districts) consisting of 15 Statutarstädte (towns with their own charter performing municipal and district administrative duties) and 79 Landbezirke,
- and 2,096 Gemeinden (municipalities).[1]
Article 15 of the Constitution establishes the principle of general competence for the Länder. The powers of the Länder are symmetrical. The federal competences are listed in Article 10 (legislation and execution at federal level), Article 11 (federal legislation but execution by the Länder) and Article 12 (federation passes framework laws and the Länder are responsible for implementing legislation and execution) of the Constitution. Articles 115 to 120 set out the fundamental principles of self-administration.
In December 2018, the Nationalrat and the Bundesrat passed far-reaching constitutional reforms of the federal division of competences between the Bund and the Länder (so-called "Kompetenzbereinigung"). The reform package came into force in January of 2020 and brought fundamental changes to the Übergangsgesetz 1920 (transitional law of 1920). Subject of the amendments was mainly Article 12 B-VG, which lists the federal level's legislative powers (framework laws) which each Land is empowered to implement via implementing laws. The Kompetenzbereinigung is intended to disentangle and simplify Bund-Länder-competencies and abolishes many of the rights of mutual consent of the federal government and the Länder. Specifically, only policies regarding poverty, sanatoria and nursing homes, and electricity continue to be regulated in Article 12 B-VG. In these three areas, the Bund continues to be responsible for basic legislation while the Länder are responsible for implementation and execution. Other matters previously regulated in Art. 12 B-VG, such as land reform, plant protection, natural healing resources, health requirements for sanitaria, as well as maternity, infant and youth protection will now be regulated in Art. 15 B-VG and thus become exclusive competencies of the Länder. The Bund, on the other hand, will obtain exclusive legislative powers for population policy, labour law and extrajudicial dispute mediation in matters of civil law and criminal law (Art. 10 B-VG). Finally, restricted responsibilities for sanatoria and nursing homes shall also be included in Article 11, as well as electricity management and workers' protection in agriculture and forestry.
Municipalities total revenue amounted to 22.59 billion euros in 2018.[2] Of this, about 3.7 billion euros were municipal taxes. This includes the municipal business tax (66.1% of the municipal tax revenue or 2.46 billion euros in 2018) and the real estate tax (16.2% of the municipal tax revenue or 602,6 million euros in 2018). In addition to municipal taxes, shared taxes provide for about 6.67 billion euros in 2018. These include for instance VAT, wage tax, corporation tax and the petrol tax.
Besides taxation, municipalities raised revenue in the order of around 5,85 billion euros in 2018 through own economic activities, fees, and assets.[3]
Central level
Article 10 of the Austrian Federal Constitution lists the exclusive legislative powers of the federation: national and European elections, foreign policy, migration, federal finances, banking, trade policy, peace and security, public safety, transport, labour law, etc. The federation retains the sole legislative power and administrative authority in these areas.
Article 11 of the Constitution: legislation at federal level – administration at Land level (e.g. road traffic, citizenship, environmental impact assessments, sanitation, inland shipping).
Article 12 of the Constitution lists the federal level's legislative powers (framework laws) which each Land is empowered to implement via implementing laws (services for the needy, young people, the public at large; land reform, labour-legislation).
The overwhelming majority of legislative acts are carried out at federal level. However, as noted above, the constitutional reform of 2018 (Kompetenzbereinigung) introduced far-reaching changes and shifted competencies from the federal to the regional level.
Regional level
Federal State – Länder level
Article 11 of the Constitution: the Länder are responsible for the execution of certain federal laws.
Article 12 of the Constitution: adoption and execution of implementing laws for federal framework laws.
Article 15 of the Constitution: general clauses: the Land is responsible for any area of legislation or administration which is not specifically within the purview of the federal level, e.g. spatial planning, environmental protection, planning law, transport.
Indirect federal administration: Federal laws are implemented by the governor (Landeshauptmann/Landeshauptfrau) and the authorities subordinate to him. The governor acts as an officer of the federal government and is bound by the instructions of the federal government or minister.
Intermediate Level
Districts have no competences vested in them. They mainly serve as administrative units.
Local level
The local authorities have general responsibility for exclusively or predominantly local issues.
Their main tasks are:
- the appointment of local officers and public servants;
- local police;
- local traffic management;
- supervision of local planning regulations;
- local health regulations;
- local spatial planning;
- measures to promote and support community activity: theatre, social services;
- regulations on public events.
Devolved powers: The local authorities carry out the duties delegated to them by the federation and the Länder. The local authority implements state administrative tasks. The mayor is responsible for their administration to the federal authorities or the Land.
[1] Gemeindeverzeichnis Stand 1.1.2019.
[2] https://gemeindebund.at/website2016/wp-content/uploads/2019/12/gemeindefinanzbericht_2019_neu.pdf
[3] https://gemeindebund.at/website2016/wp-content/uploads/2019/12/gemeindefinanzbericht_2019_neu.pdf
last update: 2020
