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Farm deposit scheme more of a tax shelter than drought relief
30 May 2005
Treasury and the Australian Taxation Office believe some farmers are using Farm Management Deposits Scheme – designed to help them ride out the drought - as a tax shelter. The Australian Bureau of Agricultural and Resource Economics, said the pattern of deposits and withdrawal over the past six years shows farmers were more interested in tax breaks than the policy goal of self-reliance. ABARE said "a significant proportion also used the money for holidays or personal expenses." Under the scheme, primary producers can claim a tax deduction on money put into the drought-assistance accounts in the year the money was saved. The funds are subject to income tax when withdrawn.
The Australian, 28/05/05
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