The  objective of this audit is to assess whether the Australian Taxation Office (ATO) and the Department of Agriculture and Water Resources (DAWR) have  effectively administered the Farm Management Deposits (FMD) Scheme.

Audit criteria

The ANAO proposes to examine whether:

  • the policy changes introduced to the FMD Scheme effective 1 July 2016 were established on a sound basis to help achieve the Scheme’s objectives; and
  • effective risk identification and compliance strategies are in place to support the integrity of the FMD Scheme.

One of the sub-criteria is to examine whether the ATO and the Treasury used appropriate data to estimate the potential tax revenue forgone as a result of the policy changes introduced from 1 July 2016.