Defer your taxes and save for a rainy day.
Farm Management Deposits are a risk-management tool to help primary producers deal with uneven cash flows. Uneven income is common in primary production businesses because of things such as natural disasters, climate and market variability. The FMD scheme allows primary producers to set aside pre-tax income from primary production in years of good cash flow to draw on in years of lesser cash flow.
Click here to read how farmers are using farm management deposits to manage cashflow and taxes.
Of course this doesn't apply to Pitt St farmers or non-primary producers but if your a primary producer or work with farmers, then this is a great way to manage taxes and cashflow risk free.
We work with a number of primary producers and utilise this strategy extensively. It helps when the farmers are making money because for many of them it is feast or famine.
Rural clients are pretty complex because they need to consider succession and estate planning for the next generations as well as considering non-farm investments incorporating superannuation and non-superannuation entities.
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