March 11, 2021
Farmers are being encouraged to have their say on the Farm Management Deposits Scheme (FMDS) … is it meeting your needs and working efficiently?
Federal Agriculture Minister David Littleproud said his Department was undertaking the evaluation as part of the government’s Drought Response, Resilience and Preparedness Plan.
“The FMDS helps farmers to deal with the fluctuating income streams that come with climatic variations and changing market conditions,” Minister Littleproud said.
It was set up in 1999 to help farmers prepare for drought and other downturns in income. Eligible primary producers are able to set aside up to $800,000 in pre-tax income to draw in future years when needed.
“Its aim is to help farmers build financial self-reliance, manage risks and prepare for tough times.
“Farmers can have their say on how well the FMDS works and how it should work into the future.
“The evaluation provides an opportunity to determine what areas need improving.
“It is one of a number of tax measures designed to assist our farmers improve cash flow and provide an incentive for improved risk management.
“We need to get the settings right to ensure it remains a fit-for-purpose tool for farmers.”
Balances held in FMD accounts have increased over the past decade to $5.3 billion (as at January 31). There has been a 6 per cent decrease in balances over the past 12 months.
- More information and a survey is available online
