Farm Management Deposits (FMD) Scheme

This program is designed to increase the self reliance of Australian primary producers by helping them manage their financial risk and meet their business costs in low-income years by building up cash reserves.

The program allows eligible primary producers to set aside pre-tax income which they can draw on in future years when they need it. Income deposited into an FMD account is tax deductible in the financial year the deposit is made. It becomes taxable income in the financial year in which it is withdrawn.

From 1 July 2016, primary producers affected by drought can withdraw their FMDs before 12 months without losing any taxation benefits, if they:
- Made their FMD in the previous financial year.
- Have held their FMDs for at least six months.
- Can demonstrate that an area of their farming property has been affected by rainfall deficiency for six consecutive months. To be eligible, the rainfall must be within the lowest 5% of recorded rainfall for their property for that six-month period.

Eligible applicants must:
- Be an individual carrying on a primary production business, either as a sole trader or a partner in a partnership, or a beneficiary of a primary production trust.
- Earn no more than $100,000 in non-primary production taxable income in the financial year you deposit the FMD.
- Make an FMD of $1,000 or more.
- Hold no more than $800,000 in FMDs at any time.
- Hold the FMD for at least 12 months to retain the taxation benefits.

Please refer to the Information for Primary Producers for the complete eligibility requirements.