The farm management deposits (FMD) scheme helps primary producers to deal more effectively with uneven income flows. It gives concessional tax treatment to deposits made during years of good cash flow, which can then be drawn on in later years when the funds are needed.
FMD accounts are commercial products offered by financial institutions. The Department of Agriculture and Water Resources has policy responsibility for the scheme. The ATO is responsible for the administration of the tax aspects of the scheme.
Generally, deposits you make into an FMD account are tax deductible if certain conditions are met. When you withdraw deposits that you previously claimed as a tax deduction, that amount is assessable income in the year it is repaid to you.
Tagged In Service Type: Drought Support Service , Financial, Financial Support / Employment
Phone: 13 28 65
Website: Farm management deposits scheme