Summary:
A Farm Management Deposit Account (FMDA) is a tax efficient deposit account which allows primary producers (with a taxable non-primary production income of not over $65,000) to shift their pre-tax dollars (surplus funds) from higher income years to lower income years thereby reducing their exposure to seasonal and economic fluctuations.
Banking products are issued by Suncorp-Metway Ltd ABN 66 010 831 722. Please refer to the Product Information Document before making a decision regarding this product.
Features
- Choose between a fixed or variable rate.
- Earn high interest on pre-tax income.
- Choose your Interest Payment Frequency on Fixed Terms
- Interest is paid annually on anniversary of account opening (variable rate deposits). No fees.
- Deposits can be withdrawn in low-tax years to reduce the tax burden.
Statutory Requirements
- The deposit account holder must be a primary producer when the deposit is made.
- Deposits need to remain invested for a minimum of 12 months to take advantage of the taxation benefit.
- Minimum Deposit of $1,000 and Maximum Deposit of $400,000 (sum of all accounts).
- The deposit account must be in an individual's name.
- All Farm Management Deposit Accounts must be with the one financial institution.
Please refer to the Product Information Document for other statutory Requirements.
| Feature | Description |
|---|---|
| Interest Rate |
|
| Tax Benefit | Allows eligible primary producers to defer their income by investing before tax income in the year the deposit is made - paying tax only when the withdrawals are made. You should seek professional advice from your tax advisor as to how this product will impact on your tax position. |
| Fee Free | You will not be charged a fee for this product. |
