myTax 2019 Net farm management deposits or repayments

This section is for primary producers only.

Complete this section if you made farm management deposits (FMD) or had repayments during 2018–19.

Essentials

FMD owners can access their deposits early when affected by certain natural disasters, without losing their concessional tax treatment, (see Natural disaster assistance and 'early repayment' and Drought and 'early repayment').

Definitions

An FMD provider is an institution that accepts farm management deposits.

An FMD owner is a person who makes an eligible farm management deposit.

If you received a distribution of income as a beneficiary of a trust that carried on a business of primary production, you are considered to be carrying on a business of primary production and therefore eligible for the farm management deposit tax concessions.

If you are the beneficiary of a primary production trust that made a loss, you are considered to be in a business of primary production, and therefore eligible for the farm management deposit tax concessions, if:

• the trustee of the primary production trust nominated you as a chosen beneficiary, or
• you are the beneficiary of a fixed trust.

For more information, see Farm management deposits scheme, or phone 13 28 61.

Completing this section

You may need:

• your account statement from your FMD provider
• Information for primary producers
• Farm management deposits scheme

1. Add up your deductible deposits you made in 2018–19, and enter the total into Deductible deposits.
2. Add up your early repayments you withdrew during 2018–19 that qualify for the natural disaster or drought exception, and enter the total into Early repayments – natural disaster and drought.
   If you withdrew in 2018–19 a deposit you made in 2017–18 for which you claimed the deduction, you do not need to lodge an amendment to your 2017–18 tax return.
3. Add up the FMDs you held for 12 months or more that were repaid during 2018–19, and enter the total into Other repayments.
   MyTax will calculate your Net farm management deposits or repayments amount by adding together Early repayments – natural disaster and drought and Other repayments, then reducing the total by Deductible deposits.
4. Select Save.
5. Select Save and continue.

Record keeping

You will need to keep the following documents:

• statement of account from your FMD provider
• proof that you received Natural Disaster Relief and Recovery Arrangements (NDRRA) Category C assistance for primary producers.

Small business income tax offset

You may be entitled to the small business income tax offset if any part of:

• Net farm management deposits or repayments relates to a business you carry on as a sole trader and you are a small business entity
• Other repayments relates to a partnership or trust that is a small business entity.

We use these amounts to work out your entitlement to the small business income tax offset. For more information, see Small business income tax offset.