The Australian Government has announced the following changes to the Farm Management Deposits (FMD) Scheme, to commence on 1 July 2016:
• Increasing the maximum amount that can be held in FMDs by a primary producer from $400,000 to $800,000
• Allowing primary producers experiencing severe drought conditions to withdraw an amount that has been held in an FMD for less than 12 months without affecting the income tax treatment of the FMD in the earlier income year; and
• Allowing amounts held in an FMD to offset a loan or other debt relating to the FMD owner's primary production business.