The tax law relating to farm management deposits will be amended to remove a current minor inconsistency so that an
eligible primary producer can also access the tax benefits of
withdrawing their farm management deposit early when:

• the primary producer is in an area that has previously been declared to be in exceptional circumstances
• the exceptional circumstances declaration did not apply to the primary producer because of their producer status
• at a later time the exceptional circumstances declaration is extended to apply to the primary producer, and
• the primary producer made the farm management deposit prior to the time
  the exceptional circumstances declaration applied to them.

The change in the law will be effective from 1 July 2002.

Tax Laws Amendment (2008 Measures No. 1) Bill 2008

Tax Laws Amendment (2008 Measures No. 1) Bill 2008 – Explanatory Memorandum

Farm management deposits do not generally have any tax benefit
where they are withdrawn within 12 months of deposit. Exceptions
include where the deposit is withdrawn because the owner dies, becomes
bankrupt, ceases to be an eligible primary producer, or transfers their
deposit to another financial institution.

A further exception is where a primary producer carries on a primary
production business in an area that is declared to be in exceptional
circumstances. However, although the declaration of exceptional
circumstances may apply to the area in which the primary production
business is carried on, it may not apply to all primary producers in
that area.