From July 2016, the Australian Government has made some major changes to the FMD Scheme.
Three main areas have changed and it’s important to you understand them as they might have implications for your tax and financial situation.
1. The cap on FMDs has doubled to $800,000
Each eligible primary producer can now hold up to $800,000 instead of the previous $400,000.
2. Early access trigger during times of drought
If you are affected by drought you are able to withdraw your FMD within 12 months of deposit, without losing your claimed tax benefit.
3. Using FMDs to offset the cost of interest on farm debt
Your financial institution can set up an offset account allowing you to use your FMD to offset your interest costs.
Overall these changes may have an effect on your tax or financial situation. If you have a current FMD or are thinking of getting one, we encourage you to call us today to make sure you can make the most of these changes.
Contact Gary on (03) 5441 8043 or Stephen on (03) 5022 8118
More information about the changes can be found here.