What is a Farm Management Deposit Account?
A Farm Management Deposit Account (FMDA) is a tax efficient deposit account which
allows primary producers (with a taxable non-primary production income of not over
$65,000) to shift their pre-tax dollars (surplus funds) from higher income years
to lower income years thereby reducing their exposure to seasonal and economic fluctuations.
Benefits of a Suncorp Farm Management Deposit Accounts?
- Choose between a fixed or variable rate.
- Earn high interest on pre-tax income.
- Choose your Interest Payment Frequency on Fixed Terms
- Interest is paid annually on anniversary of account opening (variable rate deposits).
No fees.
- Deposits can be withdrawn in low-tax years to reduce the tax burden.
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Statutory Requirements for Farm Management Deposit Accounts:
- The deposit account holder must be a primary producer when the deposit is made.
- Deposits need to remain invested for a minimum of 12 months to take advantage of
the taxation benefit.
- Minimum Deposit of $1,000 and Maximum Deposit of $400,000 (sum of all accounts).
- The deposit account must be in an individual's name.
- All Farm Management Deposit Accounts must be with the one financial institution.
Please refer to the Product
Information Document for other statutory Requirements.
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Feature
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Description
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Interest Rate
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- Variable Interest Rate.
- Fixed Term deposits are available -terms range from one month to twenty-four months
with various Interest Payment Frequencies.
- Check the latest
Interest Rates.
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Tax Benefit
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Allows eligible primary producers to defer their income by investing before tax
income in the year the deposit is made - paying tax only when the withdrawals are
made. You should seek professional advice from your tax advisor as to how this product
will impact on your tax position.
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Fee Free
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You will not be charged a fee for this product.
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Product Information Document
Terms and conditions apply.
Farm Management Deposit Account Product is issued by Suncorp-Metway Ltd. ABN 6610831722. Please read the Product Information Document before you make any decisions regarding the product.
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Disclaimer: Farm Management Deposit Account Product is issued by Suncorp-Metway Ltd. ABN 6610831722. Please read the Product Information Document before you make any decisions regarding the product. Contact us for a copy. ^ This does not constitute tax advice. You should seek professional advice from your tax advisor as to how this product will impact on your tax position.
