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17 Net farm management deposits or repayments 2025

Complete question 17 to report net farm management deposits and withdrawals. Primary producers only.

Last updated 27 May 2025

Things you need to know

This question is for primary producers only.

Declare at this question net farm management deposits (FMDs)and withdrawals. If you receive a distribution of income as a beneficiary of a trust that carries on a business of primary production, you're both:

  • considered to be carrying on a business of primary production
  • eligible for the FMD concessions.

If you're the beneficiary of a primary production trust that makes a loss, you're considered to be in a business of primary production, and therefore eligible for the FMD tax concessions, if either:

  • the trustee of the primary production trust nominates you as a chosen beneficiary
  • you're the beneficiary of a fixed trust.

A FMD provider is an institution that accepts FMDs.

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

FMD owners can access their deposits early when certain natural disasters or drought affect them, without losing their concessional tax treatment.

For more information, see:

For more information, see Farm management deposits.

Deductible deposits

Your FMDs for 2024–25 are deductible if you satisfy all of the following:

  • your taxable non-primary production income for 2024–25 is $100,000 or less
  • you're carrying on a primary production business at the time of making the deposit
  • if you stop carrying on a primary production business during the year, you recommence carrying on such a business within 120 days
  • your individual deposits aren't less than $1,000 and total deposits not more than $800,000
  • your individual deposits don't cause your total FMDs to exceed the $800,000 account limit
  • your individual deposits don't exceed the amount of your taxable primary production income for 2024–25
  • you hold the deposits for at least 12 months or qualify for the early repayment exceptions.

Non-deductible deposits

You can't claim a deduction for deposits made in 2024–25 if during the year the FMD owner either:

  • becomes bankrupt or ceases to carry on a primary production business (including a business that is carried on by a partnership or by a trust) for 120 days or more
  • dies.

If this applies to you or you're the executor of a deceased estate:

  • you must repay all deposits
  • include as assessable income any deposits you repay that were previously deducted
  • don't claim a deduction for deposits you either
    • make after the business ceases
    • make by the now deceased FMD owner in 2024–25.

Deposits repaid within 12 months

You can't claim a deduction for that part of a deposit repaid within 12 months.

If you withdrew a deposit early (and don't qualify for either of the early repayment exceptions) and make the deposit in this income year, don't include this amount as a deposit or repayment. If, however, you claim the deduction in a prior income year, request an amendment of your assessment for that income year.

If you withdrew part of your deposit early, you may continue to claim a deduction for that part of the deposit that is held for a full 12 months or more (provided that your total deposits remain $1,000 or more).

Natural disaster assistance and 'early repayment'

You can access your deposits early, without losing your concessional tax treatment, if you're eligible to claim the natural disaster assistance exception. That is, if all of the following apply:

  • you make the original deposit before a natural disaster declaration
  • your primary production business receives Natural Disaster Relief and Recovery Arrangements (NDRRA), Category C assistance
  • you withdraw the FMD deposit early, after you receive the NDRRA, Category C assistance.

To confirm that your business is eligible, or receives this type of assistance, review your disaster assistance documents. For more information on this natural disaster exception, see Farm management depositsExternal Link.

If you claim the exception, you can't claim a deduction for deposits you made in 2024–25 after the early repayment.

Drought and 'early repayment'

You can access your deposits early, without losing your concessional tax treatment, if you're eligible to claim the drought exception. You're able to claim this exemption if all of the following apply:

  • for 6 consecutive months an area of your primary production property is affected by rainfall that is within the lowest 5% of recorded rainfall for that area of your property
  • publicly available rainfall records held by the Bureau of Meteorology confirm this low rainfall for the period of 6 consecutive months preceding the month in which the repayment is made
  • for that 6-month period
    • you hold the deposit
    • you aren't involved solely in primary production industries like fishing, pearling, tree felling or tree transporting.

You can determine if your primary production property meets the rainfall requirements at a particular time by using the FMD Rainfall AnalyserExternal Link on the Department of Agriculture, Fisheries and Forestry website.

To obtain your concessional tax treatment, you need to ensure that any repayment of your deposit occurs before the end of the month immediately following that 6-month drought period.

If you claim the exception, you can't claim a deduction for deposits you make in 2024–25 after the early repayment.

Repayments are assessable income

You must include repayments of previously deducted deposits as assessable income in the income year they are repaid.

Don't include as assessable income repayments of deposits that you didn't claim as a deduction.

When you receive a repayment, you're considered to have been repaid any non-deductible amounts first.

Reinvesting, extending, or transferring deposits

You don't need to include as assessable income:

  • reinvested deposits, or extensions of the term of deposits with the same provider
  • merged deposits provided certain conditions are met
  • transfers of the same deposit amount from one FMD provider to another; examples of this include
    • electronic transfers from a liquidated authorised deposit-taking institution (ADI) to a new ADI
    • transfers by the Australian Prudential Regulatory Authority under the Financial Claims Scheme.

Deceased estate

If you're looking after the estate of someone who dies in 2024–25, you can't claim a deduction for any deposits they make in 2024–25. Any farm management deposits held at the time of death are assessable income in 2024–25 to the extent they were previously claimed as a deduction.

Deductions in earlier years aren't affected even when the person dies within 12 months of making the deposit.

For more information, see Farm management deposits or contact us.

Do you make farm management deposits (FMDs) or have repayments during 2024–25?

What you need to answer this question

You'll need the following:

Completing your supplementary tax return

To complete this question, follow the steps.

Step 1

Add up deductible deposits you make in 2024–25.

Write the total at question 17– label D in your supplementary tax return.

Step 2

Add up early repayments you withdraw during 2024–25 that qualify for the natural disaster or drought exception. Write the total at label N.

If you make the deposit in 2024–25, ensure you include this deposit at question 17 – label D.

If you withdraw in 2024–25 a deposit you made in 2023–24 for which you claim the deduction, you don't need to lodge an amendment to your 2023–24 tax return.

Step 3

Add up the FMDs that you hold for 12 months or more and that are repaid during 2024–25. Write the total at label R.

Step 4

Add up the amounts you show at labels N and R, and subtract the amount you show at label D.

Write the answer at label E. If the amount is negative (your deductible deposits exceed your total repayments), print L in the Loss box at label E.

Small business income tax offset

If any part of the amount you show at label E relates to a business you carry on as a sole trader and you're a small business entity, you may be entitled to the small business income tax offset. See instructions at P8 Business income and expenses – Small business income tax offset in the Business and professional items schedule 2025.

If any part of the amount you show at labels N or R relates to a partnership or trust that is a small business entity, you may be entitled to the small business income tax offset. See question 13 Partnerships and trusts 2025.

We use these amounts to work out your entitlement to the small business income tax offset.

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