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What is a Farm Management Deposit (FMD)?

A Westpac FMD is a facility that lets you manage your cash flow while you reduce tax in the income year you make a deposit (any amount from $1,000 to $800,000). It is only available to primary producers.


Developed to help primary producers better manage cash flow uncertainties, the Farm Management Deposit account lets you build cash reserves. Hold farm management deposits for at least 12 months to be eligible for the taxation benefits.

To be eligible for the Farm Management Deposits scheme, you must:

  • Be an individual primary producer earning no more than $100,000 in non-farm income
  • Hold a minimum deposit of $1,000, not exceeding $800,000
  • Hold farm management deposits for at least 12 months to qualify for tax benefits.

You can read more here:


Balances income

Reduces your tax and balances your income through the seasons by investing for any period between 7 days and 5 years.1

Fixed interest rate

A fixed rate of interest provides you with certainty of the return you will receive on your funds over the full term.

Tax deductible1

When you put pre-tax primary production income into an FMD deposit for 12 months or more, it will be tax deductible in the income year it’s deposited, and assessable in the income year that it’s withdrawn.*

Early terminations

You will need to give Westpac 31 days’ notice to access your funds prior to maturity, except in cases of hardship. If you have less than 31 days remaining on your term, the earliest you can access funds is after maturity if hardship doesn’t apply.

Why Westpac Agribusiness?

  • Enjoy the support and guidance of dedicated local agribusiness bankers who get to know your business and the challenges you face.
  • Get access to agribusiness products and solutions tailored for your needs.
  • As Australia’s first bank, we’ve backed the agribusiness sector for 200 years – weathering floods, droughts and recessions together with our customers.
  • Over 20,000 Australian businesses had their say and agreed that Westpac is the Best Major Digital Business Bank 3.

Quick facts

  • Number of deposits - You can have more than one FMD, however the total FMD amounts deposited for an individual can’t exceed $800,000.
  • Banks - Primary Producers can hold FMD’s with more than one financial institution.
  • Income - Only Primary Producers whose taxable non-primary production income for the year is less than $100,000 are eligible.

Case study

Mr West^ runs a primary production business of grain growing.

In May of income year 2 Mr West again estimates his taxable primary production income. His grain growing operation is estimated to reach a taxable primary production income of $50,000. If he decides to withdraw2 his FMD in Year 2, he will have additional income of $50,000, giving a total assessable income of $100,000.

Mr West decides to roll over his FMD on a six monthly basis, until he can determine when he needs
the money.

In May of income year 3 and under the pressure of drought, leading to lack of income, Mr West decides that he needs use of the funds currently held as an FMD. He closes2 his FMD and brings the $50,000 back into his transaction account. This $50,000 will now form part of his taxable primary production income for this income year.

Over these three seasons Mr West has successfully used FMDs to assist him in managing both his tax position and his cash flow.

The possibilities

Every season is different, as are individual financial goals. Once your FMDs have assisted you in your tax management, you may consider various options for using the funds, such as:

  • Reducing debt.
  • Ongoing working capital.
  • Tax-effective investment into superannuation.

At Westpac our Agribusiness Managers have access to a team of Agribusiness Financial Planners. Together we can work out a plan that will assist you in achieving your financial goals.

Things you should know

Term Deposits & Farm Management Deposits - Terms and Conditions (PDF 202KB)


1. This information does not take your financial circumstances into account. Read the Terms and Conditions before making a decision. The taxation position described is general in nature and should not be relied upon as a complete or definitive statement of the law and its application to your
circumstances. It does not constitute tax advice and is based on Australian tax laws current as at 30 January 2010. By providing the example, Westpac is not intending to furnish tax or financial advice. Westpac recommends you obtain specific tax and financial advice on your own position from suitably qualified advisers before opening a FMD account.


2. Customer must provide a minimum 31 days notice to access funds and close the account prior to maturity from 01/01/2015 (except in cases of hardship). Westpac Financial Planners are not qualified to give tax advice.


3. Westpac Live was named Best Digital Platform at the Australian Business Banking Awards 2018. Westpac’s Online Banking is subject to terms and conditions and may be subject to fees and charges. This information does not take your personal objectives, circumstances or needs into account. Consider its appropriateness to these factors before acting on it. Read the disclosure documents for your selected product or service, including the Terms and Conditions or Product Disclosure Statement before deciding. 


*Note: You will have to invest for a minimum of 12 months to receive the tax deferral (except in certain circumstances).


^Not a real name.

Tax information is only a guide. It's important to obtain independent expert tax advice.

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