What is an FMD deposit?
A Farm Management Deposit is a scheme for farmers to set aside money during good years to help them cope with downturns or unexpected expenses in the future.
Farmers can deposit money into an FMD account during years of higher income, and then withdraw these funds during years of lower income. These deposits are considered tax-deductible in the year they're made but are taxable when withdrawn.
What are the farm management deposit interest rates?
Farm Management Deposit rates can vary and are influenced by factors such as prevailing market interest rates, the financial institution's policies, and any special promotions they may offer.
Typically, FMD interest rates are competitive with other deposit products offered by banks and financial organizations, but they may also be influenced by specific features, such as the requirement for the funds to be held for a minimum period.
What are the common farm management deposit rules?
FMDs are subject to specific rules and regulations outlined by the Australian Taxation Office (ATO) and the Australian Government:
- To be eligible to open an FMD account, an individual must be carrying on a primary production business in Australia. This includes activities such as farming, fishing, forestry, and beekeeping.
- Deposit Limits. There are limits on the amount that can be deposited into an FMD account. The maximum amount that can be deposited in an FMD account is $800,000 per individual or $1.6 million per couple (if both partners are eligible primary producers). These limits are subject to change.
- Deposit Timing. Funds deposited into an FMD account must be from primary production income earned during the financial year in which the deposit is made. Deposits must be made within 12 months of the end of the financial year in which the income was earned.
- Withdrawal Restrictions. Funds deposited into an FMD account must be held for a minimum period of 12 months. Early withdrawals may incur penalties or taxation consequences. Withdrawals can only be made in certain circumstances, such as in times of financial hardship or for specific farm management purposes.
- Tax Treatment. Deposits into an FMD account are tax-deductible in the financial year in which they are made. However, withdrawals are treated as assessable income in the year they are withdrawn.
Can a farm management account be joint?
Yes, if both partners in a farming operation are eligible primary producers, they can open a joint FMD account. This allows them to collectively deposit funds and manage their farm finances more effectively.
Joint FMD accounts operate similarly to individual accounts in terms of eligibility, deposit limits, withdrawal restrictions, and tax treatment. However, it's essential for both partners to meet the eligibility criteria as primary producers and to understand the implications of jointly holding an FMD account, including tax implications.
See the similar FAQ about Australian banks:
- How do I apply for an NAB bank guarantee?
- Westpac - super offer
- Westpac lifetime superannuation service
Details of companies offering the financial services:
ANZ Bank
Head office’s address: 833 Collins Street
Contact center: 13-13-14
Phone: 61-3-9683-9999
Mail address: 833 Collins Street Docklands, Melbourne
Web-site: http://www.anz.com
Swift code: ANZBAU3M
Financial institution code: ANZ
Stock code: ANZ
ABN: 11 005 357 522
BSB: 015-891
Bank of Melbourne
Head office’s address: 525 Collins Street
Contact center: 61-132266
Phone: 61-3-9982-4186
Mail address: 525 Collins Street Melbourne
Web-site: https://www.bankofmelbourne.com.au/
Swift code: SGBLAU2S
ABN: 33 007 457 141
BSB: 193-879
Bank of Queensland
Head office’s address: 100 Skyring Ter
Contact center: 61-1300-557-272
Mail address: 100 Skyring Ter L 6, Newstead, Queensland, 4006
Web-site: http://www.boq.com.au/
Stock code: BOQ
ABN: 32 009 656 740
BSB: 124-001
Bank SA
Head office’s address: 97 King William Street
Contact center: 13-13-76
Phone: 61-2 9155-7850
Mail address: 97 King William Street, Adelaide, SA
Web-site: http://www.banksa.com.au/
Swift code: SGBLAU2S
ABN: 33 007 457 141
CommBank
Head office’s address: 201 Sussex Street
Contact center: 13-22-21
Phone: 61-2-8055-4001
Mail address: Level 10, Tower One, Darling Park, 201 Sussex Street
Web-site: https://www.commbank.com.au/
Swift code: CTBAAU2S
Stock code: CBA
ABN: 48 123 123 124
Heritage Bank
Head office’s address: 400 Ruthven St
Contact center: 13-14-22
Phone: 61-7-4694-9000
Mail address: PO Box 190 TOOWOOMBA QLD 4350
Web-site: https://www.heritage.com.au
Swift code: HBSLAU4T
ABN: 32 087 652 024
BSB: 638-603
Hume Bank
Head office’s address: 492 Olive St
Contact center: 1-300-004-863
Mail address: PO Box 343 Albury NSW 2640
Web-site: https://www.humebank.com.au
Financial institution code: HUM
ABN: 85 051 868 556
BSB: 640-000
NAB
Head office’s address: 800 Bourke Street
Contact center: 13-22-65
Phone: 61-3-8566-7023
Mail address: Level 4, 800 Bourke Street, Docklands, VIC
Web-site: http://www.nab.com.au/
Swift code: NATAAU3303M
Financial institution code: NAB
Stock code: NAB
BSB: 086-027
NAB
Head office’s address: 800 Bourke Street
Contact center: 13-22-65
Phone: 61-3-8566-7023
Mail address: Level 4, 800 Bourke Street, Docklands, VIC
Web-site: http://www.nab.com.au/
Swift code: NATAAU3303M
Financial institution code: NAB
Stock code: NAB
BSB: 086-027
Rabobank
Head office’s address: 201 Sussex Street
Contact center: 1-800-025-484
Phone: 61-1800-445-445
Mail address: GPO Box 4577 Sydney NSW 2001
Web-site: http://www.rabobank.com.au
Swift code: RABOAU2B
ABN: 70 003 917 655
BSB: 42-201
St. George Bank
Head office’s address: 275 Kent Street
Contact center: 13-33-30
Phone: 61-2-9553-5333
Mail address: St.George Bank Locked Bag 1 Kogarah NSW 1485
Web-site: http://www.stgeorge.com.au/
Swift code: SGBLAU2S
Financial institution code: STG
Stock code: SGB
ABN: 33 007 457 141
BSB: 112-908
Suncorp Bank
Head office’s address: 80 Ann Street
Contact center: 13-11-55
Phone: 61-7-3362-2222
Mail address: PO Box A50 Sydney South NSW 1235
Web-site: http://www.suncorpbank.com.au/
Swift code: METWAU4B
ABN: 66 010 831 722
BSB: 484-799
Westpac Bank
Head office’s address: 275 Kent Street
Contact center: 13-20-32
Phone: 61-2-9155-7700
Mail address: 275 Kent Street, Sydney, NSW
Web-site: https://www.westpac.com.au/
Swift code: WPACAU2S
Financial institution code: WBC
Stock code: WBC
ABN: 33 007 457 141
BSB: 032-063