The ATO advises that Tax Laws Amendment (2011 Measures No 7) Act 2011, which received Royal Assent on 29 November 2011, will allow primary producers affected by natural disasters access to their farm management deposits within 12 months of making those deposits, without the loss of any tax concessions.
The changes are intended to provide the same relief to primary producers affected by natural disaster as that which is currently available to primary producers affected by severe drought and other exceptional circumstances.
Minor amendments have also been enacted to:
- allow primary producers to hold farm management deposits (FMDs) with more than one financial institution
- ensure that inactive FMD accounts are only treated as unclaimed monies if the account has been inactive for a minimum of seven years and the financial institution is unable to contact the FMD holder following reasonable efforts to do so
- require timely and frequent reporting from an FMD provider.