Asbestos Fund Still Raising Eyebrows

Article Added July 17th, 2006 - Print This Story - Bookmark This Story

The Hardie Fund, a fund for asbestos victims in Australia, will be debated this week as ministers present a petition to the Prime Minister. Since the ruling by the Tax Office, the payments may be in jeopardy.

After the Australian Tax Office ruled that an asbestos victim fund would be subjected to taxation, premiers and ministers are concerned that victims will not receive their compensation. James Hardie had threatened to withhold payment from the fund until it was declared a charity, therefore exempting the fund from taxation and freeing it up for investment for funds not in use. The ministers are trying to get the issue on the schedule for discussion at this week’s Council of Australian Governments meeting.

The Hardie Fund was established as a court agreement between the James Hardie and victims of asbestos-related diseases that occurred as a result of their jobs. As part of the settlement, millions of dollars would be invested into a trust fund in order to facilitate quicker payments to victims and their families. Hardie was hoping the fund would be deemed a charity, so that funds in the trust could be invested when not in use. The result is that he would have made money off the fund, while evading taxation.

Article Added July 17th, 2006 - Print This Story - Bookmark This Story