Private ruling: Farm management deposit scheme
Date of advice: 5 April 2018
Published: June 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Question and answer | Are you eligible to use the farm management deposit scheme? | Yes

Relevant facts and circumstances: You are a primary producer. Your taxable non-primary production income is less than $100,000.00. You intend on opening a farm management deposit account once you have received our ruling. Any deposit you make to the farm management account will be made by you.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 393-5

Reasons for decision: Detailed Reasoning - Farm Management Deposit Scheme: Subsection 393-5 of the ITAA 1997 states: (1) You can deduct the amount of a farm management deposit for an income year if (a) You are the owner of the deposit: and (b) the deposit is made at a time during the year when you are an individual carrying on a primary production business in Australia; and (c) if during the year, at a time after the deposit was made, you stopped carrying on a primary production business in Australia--you started carrying on such a business again within 120 days (whether or not during the year); and (d) your * taxable non-primary production income for the year is not more than $100,000; and (e) you do not die or become bankrupt during the year. You are eligible to use the farm management deposit scheme as you will be the owner of the FMD account, you will make a deposit in the year you are a primary producer and your non-primary production income is less than $100,000.00.