Private ruling: Farm management deposit
Date of advice: 16 December 2020
Published: March 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction in the 20XX-XX financial year for the full amount of your Farm Management Deposit (FMD) under Division 393 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Having considered your circumstances and the relevant facts. It is accepted that you requested an FMD in the 20XX-XX financial year, you met the conditions of a 'farm management deposit' and all relevant requirements outlined in the table in section 393-35 of the ITAA 1997. The Commissioner will allow a deduction in the 20XX-XX for the amount of the deposit.

Relevant facts and circumstances: You applied for a FMD in your name. You are an individual carrying on a primary production business as a partner in a partnership in Australia with your taxable non-primary production income being less than $100,000. You have not been declared bankrupt. A bank acknowledged via a letter that an FMD was requested to be established for the 20XX-XX financial year for each member of the partnership. A processing error by a bank resulted in only one account being established for the combined value.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 393-5 | Income Tax Assessment Act 1997 section 393-20 | Income Tax Assessment Act 1997 section 393-35