Farm management deposits - early access for primary producers

Recently enacted legislation will allow primary producers affected by natural disasters access to their farm management deposits within 12 months of making those deposits, without the loss of any tax concessions.

The changes are intended to provide the same relief to primary producers affected by natural disaster as that which is currently available to primary producers affected by severe drought and other exceptional circumstances.

Minor amendments have also been enacted to:

allow primary producers to hold farm management deposits (FMDs) with more than one financial institution
ensure that inactive FMD accounts are only treated as unclaimed monies if

the account has been inactive for a minimum of seven years
the financial institution is unable to contact the FMD holder following reasonable efforts to do so

require timely and frequent reporting from an FMD provider.

Legislation and supporting material

The following act received royal assent on 29 November 2011:

More information

For more information on:

FMD changes (including eligibility requirements) visit the Department of Agriculture, Fisheries and Forestry website
how to complete your income tax return for farm management deposits visit the ATO website.

Last Modified: Thursday, 9 February 2012

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