Changes to farm management deposit scheme
Farm management deposits (FMD) are a risk-management tool to help farmers deal with uneven income, which is common in agriculture because of natural disasters, climate and market variability.
If you are a primary producer, the FMD scheme allows you to claim a tax deduction for deposits you make in the income year you made them provided the FMD is not withdrawn within 12 months.
Changes to FMDs apply from 1 July 2014.
You can consolidate deposits held for at least 12 months into a single deposit without triggering tax consequences.
The maximum you can earn in taxable non-primary production income to be eligible to claim a deduction has increased from $65,000 to $100,000.