Why choose a Farm Management Deposit Account?
Our FMD Accounts are designed to help primary producers tax effectively move income from good to bad financial years in order to help with seasonal fluctuations and adverse events that effect cash flow (i.e. natural disasters, demand issues, weather events). It works by allowing primary producers a tax deduction for FMDs made in the year of deposit as well as a reduction to PAYG instalment income (limits apply). The amount of the deduction previously allowed is included in PAYG income and assessable income when the amount is subsequently withdrawn. This allows primary producers to build up a cash reserve to manage risk and cash flow in uncertain times. Some conditions apply (Find out more about eligibility).
For further information, please visit the Department of Agriculture & Water Resources site.
On balances $1,000 - $49,999
- Set aside cash in a high interest account
- No fees
- Deposits are tax deductible in the year that they are made. You won’t pay tax on these funds until they are withdrawn (Find out more about eligibility)
- Deposits must remain in the account for a minimum of 12 months
- Fix your money for a longer term to get a higher interest rates
- At-call option is available as well
Access your money when you need it
How can this account provide potential tax benefits?
As long as you’re eligible, any deposits made into your Farm Management Deposit Account are tax deductible for the financial year in which they’re made. This money only becomes taxable income in the financial year when it is withdrawn.
Until then, it’s earning you high interest to help build a cash reserve to support your business in the future.
This information doesn’t take into account your own objectives, financial situation or needs. You should still seek professional advice from your registered tax advisor as to how this product may affect your tax position.
There are no fees associated with this account.
To be eligible for this account you must:
- Be a primary producer at the time the deposit is made
- Keep your deposit in the account for at least 12 months to take advantage of the tax benefits (limits apply)
- Deposit between $1,000 and $800,000 for the relevant Financial Year
- Open the account in an individual’s name only (no joint accounts)
This information does not constitute tax advice. You should seek professional advice from your registered tax adviser as to how this product will impact your tax position. Any information contained in this document has been prepared without taking into account your particular objectives, financial situation or needs. For that reason, before acting on the information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs. Where the information relates to the acquisition, or possible acquisition, of a particular financial product, you should consider the Product Information Document before making any decision regarding the product. Contact us for a copy.
Deposit products issued by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL 229882 (“Suncorp Bank”). Fees, charges, terms and conditions apply and are available on request.