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Updates to FMDS

 

The below changes to the Farm Management Deposit Scheme came into effect on 1 July 2016.

  • The amount that can be held by a farmer has been doubled from $400,000 to $800,000.
  • Farmers may use FMD balances as an offset against a loan used for the farming business. This reduces interest costs.
  • Improved accessibility to funds in times of drought without impacting tax treatment.

Statutory eligibility criteria applies to those wishing to take advantage of the above changes. Eligibility requirements can be found on the Department of Agriculture and Water Resources website.

For further information, please contact our office on (03) 5833 3000 or see the Rural Bank flyer here.

 

Dairy Development Grants


DAIRY DEVELOPMENT GRANTS - NOW CLOSED (fully subscribed as at 22/02/2017)

 

Grants of up to $5,000 are available to Dairy Farming Businesses to implement on-farm infrastructure improvements that assist with business rebuilding, restructure and production efficiencies.

 

Applications close 30 June 2017 or when funding is fully allocated.

 

Contact your accountant today to apply!

Managing Farm Risk Programme

The Managing Farm Risk Programme provides rebates for advice and assessments to help farmers prepare and apply for a new insurance policy that assists with the management of drought and other production and market risks. These one-off rebates will be for half of the costs incurred by eligible farm businesses, up to a maximum of $2 500 (GST exclusive). The rebates are not for insurance policy premiums.

Eligible Activities

Eligible farm businesses can apply for a rebate of the costs of engaging suitably qualified service providers to carry out one or more of these activities:

  1. Undertaking an assessment required by an insurance provider.
  2. Compiling historical farm financial performance and production data.
  3. Analysing insurance options based on a long-term, whole-of-farm risk assessment.

Applicants should seek advice before deciding on any financial product, including insurance.

For further informaiton please contact our office. Alternatively, phone 1800 837 857 or click here.

Farm Management Deposits

The scheme allows eligible primary producers to set aside pre-tax income from primary production in years of high income which can be withdrawn in years of low income. Money deposited into an FMD account is tax deductible in the financial year the deposit is made. It becomes taxable income in the financial year in which it is withdrawn. Changes to the Farm Management Deposits (FMD) Scheme commenced on 1 July 2016.

  • Doubling of the cap on deposits from $400 000 to $800 000.
  • Re-establishment of an early access trigger during times of drought.
  • Allowing FMDs to be used to offset the interest costs on primary production business.

For further information contact our office. Alternatively, phone 13 28 66 or click here.  

Farm Debt Mediation

The Farm Debt Mediation Scheme makes it compulsory for banks and other creditors to offer mediation to farmers before commencing debt recovery proceedings on farm mortgages.  In Victoria the scheme is administered by the Department of Economic Development, Jobs, Transport and Resources (DEDJTR), mediation will be provided through the Victorian Small Business Commissioner.

For further information contact our office. Alternatively, phone 136 186 or click here.

Rural Financial Counselling Service (RFCS)

The Rural Financial Counselling Service (RFCS) provides free rural financial counselling to Primary Producers and small related businesses who are suffering financial hardship. Rural financial counsellors are a mobile workforce who come to you.  They can:

  • Help identify your financial and business options.
  • Help negotiate with your lenders.
  • Help you develop an action plan.
  • Help support you to access the Farm Household Allowance (FHA).
  • Give you information about government and other assistance schemes.
  • Refer you to, agricultural advisers and educational services.
  • Refer you to  the Department of Human Services and to professionals for succession planning, family mediation and personal, emotional and social counselling.

For further information contact our office. Alternatively, for details of your nearest rural financial counsellor click here, or phone your regional office on the number below.

Eastern Region 03 5662 2566
North Eastern Region 1300 834 775
North Western Region 1300 769 489
Western Region 1300 735 578

Dairy Recovery Concessional Loans Scheme


This Scheme aims to assist eligible Victorian Dairy Farm Businesses through the crisis caused by the May 2016 decision of Murray Goulburn and Fonterra Australia to reduce farm gate milk prices in the 2015/16 year. The Scheme is delivered through Rural Finance on behalf of the Victorian State Government.

This scheme is designed to assist eligible Dairy Farm Businesses that had milk supply arrangements with Murray Goulburn or Fonterra Australia  throughout the 2015/16 year. The businesses must have been impacted by the May 2016 milk price reductions

The Scheme will offer:

  • Loans for the purpose of:
    • Re-structure of existing eligible farm debt.
    • Funding operating expenses necessary to continue normal operations.
    • Providing new debt for productivity enhancement activities.
  • Concessional loans for a maximum term of ten years.
  • A variable interest rate commencing at 2.71%.
  • A maximum loan amount of $1,000,000 (capped at 50% of total eligible farm debt).

Applications must be received by the close date, expected to be 31 October 2016 or sooner if funding is fully committed.

For further information contact our office. Alternatively, phone 1800 260 425 or click here.

Drought Concessional Loans Scheme


This scheme aims to assist eligible Victorian farmers who are currently experiencing a significant financial impact as a result of the effect of drought. The Scheme is delivered through Rural Finance and is available for Drought affected areas.
The scheme offers:

  • Loans for the purpose of:
    • re-structure of existing eligible farm debt.
    • funding operating expenses necessary to continue normal operations.
    • drought preparedness and recovery activities.
  • Concessional loans for a term of five years.
  • A variable interest rate of 3.05% effective October 2015.
  • A maximum loan amount of $1,000,000 (capped at 50% of total eligible farm debt).
  • A total pool of $30 million for loans to Victorian farmers.

Applications must be received by the close date, expected to be 31 October 2016 or sooner if funding is fully committed.

For further information contact our office. Alternatively, phone 1800 260 425 or click here.

Farm Household Allowance

 

The Farm Household Allowance (FHA) provides eligible farmers and their partners who are experiencing financial hardship with assistance for up to 3 Years. To be eligible for Farm Household Allowance you need to:

  • Be a farmer.
  • Contribute a significant part of your labour and capital to a farm enterprise located in Australia.
  • Meet an income and assets test.
  • Meet residence requirements and be living in Australia.
  • Have regular contact with a Farm Household Case Officer.
  • Be willing to agree to mutual obligations.

For further information contact our office. Alternatively, phone 132 316 or click here.