Farm management deposits scheme

About the farm management deposits scheme

Farm management deposits are a risk management tool to help farmers deal with uneven income, which is common in agriculture because of natural disasters, climate and market changes. The deposits scheme complements other risk management strategies available to primary producers, such as developing fodder and water reserves, financial planning, and diversifying production systems.

If you are a primary producer, this scheme allows you to claim a tax deduction for farm management deposits you make in the income year you made them. If you withdraw a farm management deposit, the amount of the deduction you claimed is included in your assessable income in the income year the deposit is repaid to you.