- Farmers can bank up to $800,000 for times of hardship
- Changes to Farm Management Deposits scheme welcomed
The Australian Government's decision to help farm operators better manage their finances during periods of uncertainty has been welcomed.
Agriculture and Food Minister Ken Baston said the Australian Government would tomorrow introduce legislation delivering on a key Agricultural Competitiveness White Paper initiative to strengthen the Farm Management Deposits scheme.
"This will help farmers use income generated in good years to prepare for the inevitable bad ones," Mr Baston said.
"These farm managed deposits are the greatest thing since sliced bread to help with drought management and bushfire, so I welcome any reforms that make them more attractive for saving."
The Minister said he had been lobbying the Australian Government for many years for such help.
"This is a positive move. It's important for farm operators because it allows them to put away money pre-tax in good seasons and fall back on it during periods of hardship. It makes good sense and I fully support these reforms for the business structure of agriculture in Australia," he said.
From July 1 this year, farm operators will be able to double the deposit limit for farm management deposits from $400,000 to $800,000.
The changes allow financial institutions to offer the schemes as farm business loan offset accounts and re-establish early access provisions in times of drought.
Minister's office - 6552 5400