Rural Bank has released its new Farm Management Deposit (FMD) Offset Account, the first of its kind to market, following the legislative amendments to the Commonwealth FMD scheme earlier this year.
An FMD is a deposit tailored specifically for farmers to deal more effectively with cash flow fluctuations. The scheme allows farmers to set aside and earn interest on pre-tax income from profitable years, and draw down on it when needed most, while gaining potential tax advantages at the same time.
The legislative changes to FMD criteria and benefits recognise the seasonal challenges of Australian farming and enhance this valuable tool to manage risk and plan for the future.
The new Rural Bank FMD Offset Account allows primary producers to offset funds held in an FMD account against the balance of an eligible variable rate Rural Bank Term Loan, which may assist in reducing primary production business funding costs.
Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank Limited accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank - A Division of Bendigo and Adelaid Bank ABN 11 068 049 178 AFSL/Australian Credit Licence 237879.