This could save home owners between $4000 and $10,000 for a knock-down and rebuild.

The announcement is one of a suite of measures the ACT government is working on to address the immediate concerns of 1050 local home owners whose properties may still contain remnants of the deadly insulation.

In February the government wrote to home owners to warn them not to disturb remnant fibres that could be present in wall cavities and subfloors after it conducted forensic testing of a Mr Fluffy home in Downer which showed disturbing levels of contamination.

In April, head of the Federal Asbestos Safety and Eradication Agency Peter Tighe said that all Mr Fluffy homes should be demolished as they could never truly be cleaned of the microscopic particles of amosite despite the federal government spending $100 million on removing it from roof cavities in the late 1980s.

The warnings inspired many home owners to seek an asbestos assessment on their homes. The vast majority tested positive for remnant amosite within walls and subfloors. More than a dozen required the intervention of ACT WorkSafe for short- or long-term lockdowns when Mr Fluffy was found in the living quarters.

Environment Minister Simon Corbell said that while the ACT negotiated with the federal government over the issue, the ACT government was trying to move forward with a number of legislative and mandatory measures regarding the safety of affected homes.

''Some of these measures bring cost implications with them, so we need to offset these costs [for the home owners],'' Mr Corbell said.

''I intend to make further announcements in the coming weeks, but it is timely that this decision is announced now, so that home owners who may be considering undertaking work on homes where loose-fill asbestos is present know of their options.''

The decision to waive these fees follows recommendations from the Asbestos Regulators Forum, which is the Government’s key advisory body on asbestos management and which comprises representatives from regulators across all relevant agencies, including ACT WorkSafe, ACT Land and Planning Authority, Health and Environment and Sustainable Development.

Mr Corbell said it was a significant measure as contaminated waste would normally attract a fee of $75 to $150 a tonne. A standard three- or four-bedroom family house could generate between 50 to 150 tonnes of waste, or even more depending on the level of contamination, so this could amount to a savings from about $3500 to well over $10,000 for a knockdown and rebuild.

He warned home owners not to attempt to remove loose-fill asbestos themselves. They must engage a licensed asbestos assessor or removalist to undertake the work, who must then secure Environment Protection Authority approval for the disposal prior to starting the job. That approval would then need to be provided to ACT NOWaste before asbestos waste could be dumped.

Mr Corbell noted that NOWaste needed five day’s notice prior to disposal. The removalist would then be allocated a disposal project code and provided with a book of disposal dockets which would need to be issued to each truck driver for every load and would be required to be handed in at the weighbridge.

Mr Corbell noted that it was only disposal fees being waived and ''home owners are still responsible for demolition and haulage charges involved in getting the material to West Belconnen''.

The Fluffy Owners and Residents' Action Group, which has been lobbying the government for urgent assistance for the households facing dire health and financial issues as a result of the Mr Fluffy contamination, welcomed the government’s announcement.

''This is the first announcement of financial assistance for Mr Fluffy home owners since its 18 February letter. Our collective sigh of relief is probably audible all around Canberra,'' group founder and Mr Fluffy home owner Brianna Heseltine said.

''The timing of this announcement is crucial to families who are currently arranging to knock down their homes, and are struggling with debt.

''I am also particularly pleased to see the ACT government allocate funds to facilitate a long-term solution to the Mr Fluffy issue, as opposed to costly medium-term Band-Aids,'' Ms Heseltine said.

The group, which now has 180 families as members, will meet on Saturday to discuss the ACT government’s response to requests for assistance following a meeting between Ms Heseltine and Mr Corbell on Friday.