24 July 2018
NAB’s Leadership on Farm Management Deposits a boost for farmers
Federal Member for Wide Bay, Llew O’Brien, has welcomed news that the nation’s largest agri-lender, the National Australia Bank, will allow farmers to offset their Farm Management Deposits against their loans.
NAB has also announced it will no longer charge penalty interest payments on farmers who fall into default on their loans.
Farm Management Deposits allow farmers to remove money from their taxable income during good years, to later use during tough times and use these deposits as offsets against their loans the same as many people use an everyday offset account which offsets interest on their home loan.
“This is fantastic news for Aussie farmers. One in three farmers bank with NAB so this change has the potential to help a lot of families,” Mr O’Brien said.
“While there is still a lot more work to be done, I recognise progress when it is made and I congratulate the NAB for this positive decision which will both encourage investment in our farmer’s futures and provide support for those who may be doing it tough.
“After I learned of the anxieties and concerns of people who had bad experiences with the banks and other finance providers, I lobbied strong and hard for the Government to establish the Banking Royal Commission and it is great to note that some banks have listened and are now responding,” Mr O’Brien said.