Treasury has released for public consultation an exposure draft of amendments to be made to the farm management deposits (FMD) scheme, and the accompanying explanatory material.

The exposure draft legislation is intended to:

• increase the off-farm income threshold from $65,000 to $100,000, allowing primary producers to earn more income from non-primary production
  sources in an income year before being prevented from making new FMDs; and
• facilitate the consolidation of FMDs, by eliminating the tax consequences of withdrawing and immediately redepositing FMDs.

  If passed these changes will take effect from 1 July 2014.

  The exposure draft legislation also amends the Banking Act 1959 to exclude FMDs from the operation of the unclaimed moneys scheme from the date of Royal Assent.