Endorsing the findings of the Joint Select Committee on Loose Fill Asbestos Insulation which this week called for Mr Fluffy homes across the state to be demolished, the NSW cabinet agreed on Wednesday to act on the insulation crisis and could potentially foot a bill in the billions of dollars.

The ACT Government agreed to a $1 billion buy-back and demolition scheme in October after its own taskforce warned no Mr Fluffy house could ever be made safe.

Finance Minister Dominic Perrottet has appointed retired NSW Police deputy commissioner Dave Owens as the head of the Loose Fill Asbestos Insulation Taskforce, which will work across numerous agencies, reporting to the government by May 31, 2015.

"Ensuring the health and safety of residents is the NSW Government's top priority," Mr Perrottet said.

The government would provide immediate assistance of $10,000 per family and $2000 per dependent child for Mr Fluffy-affected households through its "Make Safe" assistance package in line with ACT assistance measures. So far nearly $1.9 million has been paid in crisis assistance to Canberra families.

At least 59 homes have been identified across NSW as containing asbestos – most concentrated in Queanbeyan.

Member for Monaro John Barilaro sat on the joint committee and had been instrumental in securing the assistance package for Queanbeyan constituents who were facing financial ruin and health risks associated with the asbestos contamination. Unlike the ACT, NSW homes have never been "cleaned" of the roof insulation, greatly increasing the risk of contamination and exposure.

"Unfortunately families have been caught in the middle, but our resolute focus is about ensuring the safety of all residents to improve long term health and safety outcomes," Mr Barilaro said.

The "Make Safe" package would fund interim sealing of cavities, environmental cleaning of habitable areas, hazard labelling and regular inspections ahead of the Taskforce's advice on a long-term solution for homes. Families would be provided counselling services, assistance towards replacing furnishings and, where required, emergency accommodation.

The government would also embark on a series of regulatory changes to mandate Mr Fluffy disclosure during the homes sales process, for tradespeople – through mandatory meter box tags – and by ensuring tenants were notified when viewing properties and in residential leases.

Regulations will be changed by the first half of next year to ensure asbestos contamination notifications are attached to home sales contracts, and vendors would be legally bound to pass on information of positive amosite tests to prospective buyers. Landlords of Mr Fluffy properties would be bound to pass the information on to tenants while NSW Fire and Rescue would also be informed of Mr Fluffy addresses.

This is in line with emergency measures put in place across the ACT in July, before the ACT government announced in October it would borrow $1 billion from the Commonwealth to fund a buy-back and demolition scheme which is currently being implemented.

Mr Perrottet said the NSW taskforce would advise the government on the most appropriate enduring solution to the loose-fill asbestos issue in NSW, including government purchase, demolition and owner rebuild options.

The owner rebuild options are an issue of some contention in the ACT where owners are concerned they may not be able to afford to buy back their land once the government demolishes, cleans and rezones the blocks.

In an interim report, PricewaterhouseCoopers calculated a low of 372 and a high of 5376 NSW homes may be affected. Voluntary testing has so far returned no positive results, with 384 tests done by December 11 and another 800 requested.
Using a proximity calculation, based on the distance between Canberra and affected NSW council areas, an estimated 1110 homes could be affected. The final report on the Mr Fluffy presence across the state is due in April.

A new website and hotline has been set up for the community at www.nsw.gov.au/loosefillasbestos or by calling Service NSW on 13 77 88 or by visiting a Service NSW centre.