Farm management deposits (FMD) can help primary producers deal with years of varying income.
When you deposit into an FMD account, you can claim a tax deduction (under certain conditions). Then, when you redraw from your account, we treat the amount as assessable income in that year.
If you redraw an amount within 12 months of depositing it, you generally can't claim a tax deduction. However, if the repayment is due to an exceptional circumstance, such as drought or an applicable natural disaster, it can be deductible.
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The farm management deposits scheme helps primary producers manage varying income. During good years you make tax deductible deposits. These can be withdrawn in bad years.