Last week Sunrise Exchange News reported the Federal Government would not cut a special deal for James Hardie’s compensation fund to be treated as a charity for tax purposes.

However, the Australian Taxation Office says it will allow payments to the $4.5 billion special purpose fund to be treated as tax deductible.

James Hardie CEO Louis Gries has welcomed the decision, but the refusal to endorse the fund as a charity is something the company may still appeal against. The company says it could lose 45% of the contributions – or $1.4 billion over 40 years – if it does not qualify as a charity.