WITH seasonal regularity, farm incomes undergo year by year cycles ranging between bumper years and season failures.
To overcome some of the difficulty primary producers face, the Australian Government is evaluating the Farm Management Deposits Scheme (FMDS) .
The FMDS allows primary producers to set aside pre-tax income in good times to cover low-income years
Farmers are encouraged to have their say on an evaluation of the FMDS to ensure it meets the needs of users and operates efficiently.
Minister for Agriculture, Drought and Emergency Management, David Littleproud, said the Department of Agriculture, Water and the Environment was undertaking the evaluation as part of the Australian Government’s Drought Response, Resilience and Preparedness Plan.
“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 that come with climatic variations and changing market conditions,” Minister Littleproud said.
Eligible primary producers are able to set aside up to $800,000 in pre-tax income to draw in future years when needed.
For more information or to have your say, visit https://haveyoursay.awe.gov.au/farm-management- deposit-scheme-evaluation