The Government on Wed 12.2.2014, released for public consultation draft legislation to make amendments to the Farm Management Deposits (FMD) scheme. The draft legislation gives effect to the Government’s decision announced on 6 November 2013 to proceed with the former Government’s proposals to:

  • increase the off-farm income threshold from $65,000 to id=”mce_marker”00,000, allowing primary producers to earn more income from non-primary production sources in an income year before being prevented from making new FMDs; and
  • facilitate the consolidation of FMDs, by eliminating the tax consequences of withdrawing and immediately redepositing FMDs.

The changes would take effect from 1 July 2014.

COMMENTS are due by 28 February 2014.

[LTN 20, 31/1/14]