The company says it believed the rulings would deliver an acceptable tax outcome for the proposed fund set up to compensate Australians with asbestos-related personal injury claims against former James Hardie subsidiaries.
The deal was thrown into doubt after an ATO ruling in June this year that the special purpose fund (SPF), worth up to A$4.5 billion over 40 years, could not be treated as a charity for tax purposes.
James Hardie said today that a private ruling from the ATO had confirmed the tax treatment, in regard to proposed amendments discussed with the New South Wales government.
The company and the NSW government must first execute an amended final funding agreement (FFA) and other conditions precedent must also be satisfied including the NSW parliament passing legislation.
"The resolution of these issues involves uncertainty and there can be no assurance that obtaining the ATO rulings will lead to a finalisation of the amended FFA that is required to resolve the position," James Hardie said.
"However, James Hardie believes that obtaining the ATO rulings is an important milestone in implementing the funding proposal."
James Hardie expects to hold a meeting of its shareholders to approve the deal within 10 weeks of the company.
The company also said it had received indications that the Medical Research and Compensation Foundation (MRCF), the current compensation fund, had sufficient funds to pay asbestos claims until early 2007.