Among the raft of tax measures the Treasurer announced yesterday there was some welcome news for bankers. The Government will amend the treatment of offshore banking units outlined by the previous Labor government in the May Budget.The Treasurer's media release said the Government would not proceed with the part of the OBU measure that would have excluded all related party transactions. Instead, it will have a "targeted integrity measure".The Australian Financial Markets Association welcomed the announcement, saying it was a sensible approach that would enable protection of tax revenue without inhibiting bona fide transactions. The OBU regime was put in place in 1986 to encourage offshore financial transactions between non-residents to be conducted through an Australian institution.The operation of the scheme has been hampered by government concerns that financial institutions have been exploiting loopholes in the rules. There has also been industry concern that there is too much uncertainty about the application of the rules.Under the changes announced in May, dealings with related parties, including transactions between an OBU and a related domestic bank, were to be ineligible for OBU treatment. Transactions between OBUs, including between unrelated OBUs, were also to be made ineligible.In yesterday's media release, the Treasurer said the Government would continue to work with stakeholders to develop targeted rules to address integrity issues with the current rules.