They say the only two guarantees in life are death and taxes – but primary producers can do something that is guaranteed to ease the burden of taxes through savvy investing.
The Federal Government introduced the Farm Management Deposit (FMD) scheme to provide primary producers with an ability to set aside pre-tax income and earn interest.
A key benefit is the deposit only becomes taxable in the year of withdrawal, allowing primary producers to reduce their taxable income. To qualify for a FMD and receive tax benefits, deposits have to be held for a minimum of 12 months.
Elders, through its partnership with Rural Bank have three FMD options on offer for primary producers: a variable rate, fixed rate or a combination of both fixed and variable rates.
The interest rate options are designed to maximise flexibility for clients but all three choices still provide potential tax benefits and competitive interest rates.
Whether a primary producer is looking to earn high interest and doesn’t need access to money or wants a variable option that provides the security of a cash reserve to draw on, the FMD can give a tailored solution.
That’s good news for primary producers who have to deal with uneven income streams and want an effective risk management tool as part of their wider risk management strategies.
Elders staff live in the communities in which they work, they are on hand to provide local support and personalised service which means they make applying for an FMD easy.
For information about Farm Management Deposits, visit Elders Dorrigo at 15 Cudgery Street or phone Michele or Tanya on 66572014 to find out more.