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Farm Management Deposits Scheme

Farm Management Deposit Scheme

The farm management deposits scheme allows farmers to smooth their income over a number of financial years. This avoids the potential tax spike which might otherwise be caused by a higher-income year.

FMD – how it works

The principle of the scheme is to allow a tax deduction against current year profits for cash placed into an approved deposit, which becomes taxable only when withdrawn.

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See Farm management deposits scheme | Australian Taxation Office

This page was last modified on 2026-04-08