The recent federal government announcement to increase the non-primary production income threshold for farm management deposits and raise the cap on deposit levels is an opportunity for farmers to increase their provisioning under this scheme according to BankWest.
The changes will see an increase from $50,000 to $65,000 for the non-primary production income threshold for farm management deposits and the total limit will increase from $300,000 to $400,000¹.
Leading West Australian agriculture bank, BankWest, said the changes were positive for farmers.
"In years like the one just past, farm management deposits provide a significant reserve for those that have taken advantage of saving in past good years," BankWest Rural and Regional State Manager for Western Australia Mr Jim Watson said.
"Farmers will have more scope to set aside funds for tough times."
Mr Watson said the recent drought meant many farms may not be able to set aside further funds this year.
"Despite this, experts are predicting a good outlook for 2007 in terms of weather and commodity prices."
BankWest offers both term deposits & cash management accounts to accommodate FMDs.
¹ Source: Press Release, Tax Help for Primary Producers, The Hon Peter Dutton, MP, Minister for Revenue and the Assistant Treasurer.
