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. Farm Management Deposits provide tax benefits if kept for at least 12 months. Eligible farmers in Exceptional Circumstances-declared areas may be able to access their FMDs within 12 months while retaining the tax benefits of the scheme.
The cap on deposits is $400,000 and the non-primary production income test is $65,000.
Eligibility requirements for withdrawal within 12 months
- 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.
FMD Statistics
Latest quarterly FMD Statistics and detailed state/territory and industry totals.
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
- Income Tax Assessment Act 1936
- Income Tax Assessment Act 1997
Last reviewed: 07 Oct 2009
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