Farm Management
Deposit Account
The Farm Management Deposit Account is designed to allow eligible^ primary producersø with a taxable non-primary production income of not over $65000 to shift before-tax income from years when they need it least to years when it is most needed to help them manage their exposure to adverse economic events and seasonal fluctuations.
The FMD scheme which is managed by the Australian Government allows eligible primary producers in the scheme to deduct the amount of any Farm Management deposit they own from their assessable income for the income year in which the deposit is made. However, the amount of the deductions cannot exceed your taxable primary production income for the year. If you withdraw a Farm Management Deposit, the amount of the deduction previously allowed is included in your assessable income in the withdrawal tax year.
Farm Management Deposits provide tax benefits only if kept in
your Farm Management Deposit Account for at least 12 months.
More information about the Farm Management Deposit Scheme can be obtained
from the Department of Agriculture, Fisheries & Forestry website.
When you apply for a Farm Management Deposit Account we will provide
you with a Mandatory Statement (PDF, 30KB) which we will ask you to
sign.
Farm Management Deposits can only be held at one institution. We will
also ask you if have a Farm Management Deposit lodged with another institution
as we are unable to lodge funds in your Wide Bay Australia Farm Management
Deposit Account while you hold a Farm Management Deposit elsewhere.
To transfer a Farm Management Deposit to Wide Bay Australia, you must:
- inform us when you open your Account of your intention to transfer
your existing Farm Management Deposit holdings to us
- open a 'nil balance' account with us – we cannot accept deposits
to your new Wide Bay Australia Farm Management Deposit
Account until we receive your total deposit holdings
and credit it to your new account, and
- write to your existing financial institution requesting the transfer
of your total Farm Management Deposit holdings to your new Wide Bay Australia
Farm Management Deposit Account
All Applicants will be required to open another Wide Bay Australia account
under the same client number to receive interest payments.
We recommend applicants seek independent accounting or taxation advice
prior to opening this Account.
| Account Fee |
|
No Account or Transaction Fees |
| Minimum Balances |
|
Minimum opening balance $1000
Minimum on-going balance is $1000
Maximum Balance $400,000 |
| Funds access
|
|
Cleared funds are on-call – Minimum
withdrawal amount $1000 or whole balance |
Interest
|
|
Calculated on daily balances at the tiered rate of interest that
applies to your whole account balance and is paid monthly to another
account under the same client number. |
| Statements
|
|
|
| Withdrawal methods
|
|
|
| Deposit methods
|
|
|
^ Eligibility criteria and terms and conditions apply to this Account, please
refer to the Mandatory Statement (PDF, 30KB) we will provide on account application. Farm Management Deposits
can only be held at one financial institution - you must tell us if you already
hold a Farm Management Deposit with another financial institution. Available
to individuals only - companies or other entities are not eligible. Deposits
cannot be made by two or more people jointly or, made on behalf of two or more
people. Trustees can only make deposits on behalf of a beneficiary who is entitled
to a share of the income of the trust estate and is under a legal disability.
Please check with the
Department of Agriculture, Fisheries & Forestry
if you are unsure of your eligibility status.
øA primary producer is an individual who:
- has a primary production business in Australia, but not as a trustee
of a trust estate (for example, a dairy farm, trout hatchery, pecan plantation,
olive grove, pine plantation, orchardist, wheat farm, beef cattle lot)
- is a partner (not a company) in a partnership that has a primary production
business in Australia, or is a beneficiary (not a company) who is currently
entitled to a share of the income of a trust estate where the trustee has a
primary production business in Australia.
Please check with the Australian Tax Office
if you are unsure of your status as a 'primary producer'
Wide Bay Australia Ltd ABN 40 087 652 060 (AFS Licence No: 239686) is the issuer of this account/these accounts and any non-cash payment facilities that may be used in conjunction with them. To decide if they are appropriate for you please carefully read the booklet 'Your Guide to Wide Bay Australia's Accounts and Banking Services' (PDF, 1.08MB)
