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  • Farm management deposit reforms

    The Government released the Agricultural Competitiveness White Paper on 4 July 2015 which announced changes to the Farm management deposit (FMD) scheme to:

    • increase the maximum amount that can be held by primary producers in FMDs to $800,000
    • allow primary producers experiencing severe drought conditions to withdraw an amount held in an FMD within 12 months of deposit in the income year following deposit without affecting the income tax treatment of the FMD in the earlier income year
    • allow amounts held in an FMD to offset (that is, reduce the interest charged on) a loan or other debt relating to the FMD owner’s primary production business.

    The start date for these measures is 1 July 2016.

    Legislation and supporting material

    Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016External Link received Royal Assent on 5 May 2016.

    See also:

      Last modified: 29 Jun 2016QC 48533