Farmers in a rush on FMD deposits
The highest proportion of farm management deposits – which help farmers defer income tax to a later tax year – are made in June. The majority of withdrawals occur during September, which is typically a high expense period for winter cereal growers.
Deposits must remain in place for 12 months to receive the full tax benefits. NAB said when farmers have excess cashflow they should consider making FMD deposits regularly during the year. Around 39,000 farmers made deposits under the FMD holders, with total deposits of around $2.2 billion.