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Exposure Draft - Amendments to the Tax Law Provisions and the Banking Act 1959 related to the Farm Management Deposits scheme

Date:

Monday, 8 August 2011

Content ID:

2103

Abstract:

The Assistant Treasurer has released for public consultation a package of exposure draft legislation, Regulations and associated explanatory materials to amend aspects of the tax laws related to farm management deposits (FMDs), and section 69 in the Banking Act 1959.

A key element of the package is the retention of concessional tax treatment under the FMD scheme for primary producers affected by applicable natural disasters who have withdrawn their FMDs within 12 months of deposit. The conditions for this are set out in the exposure draft FMD Regulations. Subject to the passage of the legislation, retention of concessional tax treatment will apply retrospectively to withdrawals made from 1 July 2010 to provide support to primary producers affected by the natural disasters around the country in late 2010 and early 2011.

Other elements of the exposure draft package, which are to apply from 1 July 2012, include:

  • removal of the restriction on primary producers from holding FMDs simultaneously with more than one FMD provider;
  • more frequent and timely reporting of various statistics by FMD providers that hold FMDs to allow for better monitoring of the take-up rate and operation of the FMD scheme; and
  • ensuring that reasonable efforts will be made by FMD providers that are authorised deposit-taking institutions to contact FMD owners who have not used their FMD accounts for seven years or more, before they forward the ‘unclaimed moneys’ to the Commonwealth in accordance with section 69 of the Banking Act 1959.

These amendments were announced as part of the 2011-12 Budget.

Making a submission

Interested parties are invited to comment on the exposure draft package. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Friday, 19 August 2011

Address written submissions to:
The Manager
Industry Tax Policy Unit
Business Tax Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: FMDs@treasury.gov.au

For enquiries, please call Ly Mai on (02) 6263 3919.

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Draft Legislation  27.96kb
Regulations  61.44kb
Explanatory Statement  38.89kb
Explanatory Memorandum  59.19kb
Consultation Summary  26.73kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Draft Legislation  4,640.61kb
Regulations  432.82kb
Explanatory Statement  131.21kb
Explanatory Memorandum  247.19kb
Consultation Summary  870.85kb

Related Items:

Submissions: Exposure Draft - Amendments to the Tax Law Provisions and the Banking Act 1959 related to the Farm Management Deposits scheme - 21/09/2011

Treasury has received one submission in response to the consultation on the amendments to the Tax Law Provisions and the Banking Act 1959 related to the Farm Management Deposits scheme. The submission is a public submission and is accessible below.

The opinions expressed in the submission are those of the author and do not necessarily reflect the views of the Government or the Treasury.

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