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Farm Management Deposits
The Farm Management Deposits scheme encourages individual farmers to set aside pre-tax income in good years for use in low-income years. Eligible farmers in EC-declared areas may be able to access their FMDs within 12 months while retaining the tax benefits of the scheme.
Changes to the Farm Management Deposits scheme increase the cap on deposits to $400,000 and the non-primary production income test to $65,000.
Eligibility Requirements for EC
- The deposit must have been made before the EC declaration for the FMD holder’s area came into force.
- To confirm their EC status, the FMD holder must obtain an EC certificate from Centrelink no later than three months after the end of the income year in which the withdrawal is made.
- The amount of the withdrawal is assessable in the income year in which the withdrawal is made and you cannot claim a deduction for any subsequent deposits made in the same income year.
For more information
- Tax Office Business Tax Enquiries phone 13 28 66
- Tax Practitioners phone 13 72 86
- Farm Management Deposits scheme guide on the Tax Office website
- AAA Farm Management Deposits webpage
- Income Tax Assessment Act 1936
- Income Tax Assessment Act 1997
For information relating to recent changes to the FMD scheme, read the following fact sheets and media releases:
- New drought assistance measures (fact sheet)
PDF [153kb] - Drought support extension for farmers (media release 16 October 2006) by former Minister for Agriculture Fisheries and Forestry
Last Updated: 04 Dec 2007
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