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Austria's president has formally dissolved the country's government the day after Chancellor Sebastian Kurz lost a no-confidence vote in parliament.

President Alexander Van der Bellen on Tuesday then temporarily appointed the same Cabinet ministers back into their old roles to ensure the government is properly run until he can appoint a caretaker government.

That's expected to happen within the next week, and that provisional government will govern until new elections in September.

Kurz's deputy chancellor, Finance Minister Hartwig Loeger, takes over the duties of chancellor until the interim government is appointed.

Despite the no-confidence vote that was supported by his former coalition partner and the opposition Social Democrats, Kurz and his People's Party are riding high in the polls and could come out even stronger in the fall election.