The inquiry has brought forward its report by two months because of the urgency of the Mr Fluffy crisis among Queanbeyan and other NSW regional homeowners and has also recommended crisis financial assistance in line with the ACT.

Committee Chairman, Fred Nile said the issue warranted the immediate attention of the NSW Government.

"Although the precise number of affected homes has not yet been established we do know that there are 59 homes that have been identified as being contaminated by loose-fill asbestos insulation state-wide, with the potential for there to be many hundreds more."

Reverend Nile said "the evidence received by the inquiry makes it clear that if loose-fill asbestos fibres are present in a home then it is ultimately uninhabitable, posing continuing risks not only to residents and visitors but also to the general public. It is for this reason that the committee is recommending the adoption of a state-wide buy-back and demolition scheme for all affected residences, similar to that recently adopted by the ACT Government."

He said the buy-back scheme was the only way the NSW Government could achieve "a viable and enduring overall solution" to the Mr Fluffy crisis.

The committee was originally due to complete its report in February 2015 but unanimously agreed to bring forward its reporting date because urgent action was required.

It has also recommended the government provide financial assistance to homeowners as well as free counselling and support.

In addition, it has recommended that legislative changes be made to prevent people from unknowingly purchasing a Mr Fluffy property in future including legislating to force homeowners to disclose if their home is affected.

On Monday, the Canberra Times reported the story of a Bungendore couple who bought a home in August which they found out in November had Mr Fluffy.

Canberra couple Eddie Casey and Dale Freestone bought the Bungendore home only after having a Canberra licensed asbestos assessor declare the home was free of Mr Fluffy insulation and are currently receiving legal advice.

Mr Casey said on Wednesday the recommendations of the NSW inquiry came as a wonderful Christmas gift.

"What a relief, this is fantastic news. I urge the NSW Government to accept these recommendations urgently. It is pretty conclusive what needs to be done."

Further recommendations have been made to protect tradespeople from exposure, including tagging homes and making asbestos training mandatory for tradespeople.

Summary of recommendations:

Recommendation 1

That the NSW Government publish the final report of the PricewaterhouseCoopers forensic investigation concerning the number of New South Wales properties that may contain loose-fill asbestos insulation, when it is completed in April 2015.

Recommendation 2

That the NSW Government provide emergency financial assistance to the owners and residents of homes affected by loose-fill asbestos insulation to cover immediate expenses such as crisis accommodation, replacement of personal goods, rates and utility bills and short-term maintenance or remediation work.

Recommendation 3

That the NSW Government implement a mandatory testing program for homes built before 1980 in areas in which there are known to be, or it is likely that there are, a number of homes affected by loose-fill asbestos insulation.

Recommendation 4

That the NSW Government amend Schedule 4 of the Environmental Planning and Assessment Regulation 2000 to ensure that the presence of loose-fill asbestos insulation in a home is included on a section 149 planning certificate.

Recommendation 5

That the NSW Government take a leadership role with local government and governments across Australia, through the Council of Australian Governments process, to undertake an urgent study into the costs and benefits of establishing a comprehensive asbestos register or reporting system to apply to all residential properties at time of sale.

Recommendation 6

That the NSW Government impose a specific legal requirement on vendors, their agents and advisors, to disclose to prospective buyers the current or past presence of loose-fill asbestos insulation in a home.

Recommendation 7

That the NSW Government implement measures to protect tradespeople and emergency service workers from being exposed to loose-fill asbestos insulation, including:

Recommendation 8

That the NSW Government examine reducing the costs levied for the disposal of asbestos waste, in order to encourage its safe disposal.

Recommendation 9

That the NSW Government make provision for free counselling and mental health support to individuals and families affected by loose-fill asbestos insulation.

Recommendation 10

That the NSW Government urgently establish a taskforce to develop and implement a buy-back scheme to demolish homes identified as being contaminated by loose-fill asbestos insulation in New South Wales, modelled on the approach adopted by the ACT Government.