White dust reportedly filled a southside street during a Mr Fluffy demolition late last month, raising fears of asbestos contamination to those nearby.
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But the territory's safety watchdog said all precautions had been taken prior and during the private demolition of 20 Garanya Street in Waramanga.
ACT Worksafe commissioner Mark McCabe disputed dust had filled the street and said air-monitoring conducted during the work returned clear results.
The report follows a Fairfax Media story that revealed the demolition of a Mr Fluffy house in August reportedly created large plumes of asbestos-contaminated dust, exposing a WorkSafe inspector to the deadly fibres.
Angry neighbours were not told of the incident until informed by a Fairfax Media journalist.
In July, the government published the addresses of 1022 Mr Fluffy homes in Canberra.
All but a handful of owners signed up to the buyback program, selling their properties to the government.
The Torrens and Waramanga homes are among the eight that declined to take part.
Waramanga resident Lynn Richardson – who said she had she had not been notified of the demolition – reported school children and pedestrians walked past as "white dust" from the work filled the Weston Creek street last month.
Ms Richardson said the trucks which removed the rubble also expelled dust in the street as they departed.
"I was concerned, not just for myself but for other people," Ms Richardson said.
"It bugs me because a friend of mine died of mesothelioma.
"The fact they let kids walk past, that's what really got me. You just don't know what's in the dust."
But Mr McCabe said safety procedures prior to demolition – including the removal of all visible asbestos and the application of glue to seal in as many remaining fibres as possible – ensured the toxic fibres did not pose a risk when the Mr Fluffy homes come down.
"Little if any asbestos would be present in any dust arising from the demolition in any event, as all visible asbestos is removed prior to demolition and the majority of the remainder sealed to the remaining structure," Mr McCabe said.
He said neighbours had been notified of the planned demolition via letter box drop the day before.
"Private demolitions receive exactly the same level of scrutiny from WorkSafe as that applied to government demolitions, including an inspector present during the removal of demolition process.
"No dust was observed or reported, the asbestos removalist was utilising a misting machine and hose connected to fire hydrant as dust suppression, which occurs in all instances and is not an indication of windy weather."
Mr McCabe said concerned neighbours could inquire with on-site WorkSafe inspectors if they became concerned during demolitions.
