The cost of demolishing the ACT's Mr Fluffy homes has been revised down in the 2016 ACT budget – saving the local economy $40 million on last year's estimates.
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A budget update on the Loose Fill Asbestos Insulation Eradication Scheme shows the net cash cost of the scheme for this year has been reduced by $4 million – from $370 million to $366 million.
The total cash payments estimated over the life of the scheme have also been reduced from $968 million to $929 million by 2020.
The $39 million is due largely to a $40.5 million decrease in house and land purchase costs and decreases of $3.6 million in demolition and remediation costs.
Total estimated savings, however, are offset by the costs of running the Asbestos Response Taskforce, which are estimated to increase by $5 million over the life of the scheme.
Taskforce head Andrew Kefford said the reduction in house and land costs was largely due to the Taskforce confirming that 23 homeowners have refused to participate in the government's buyback scheme.
According to an update on the scheme presented in the ACT budget outlook, a total of 981 homeowners have accepted offers to sell their contaminated homes to the government and of these 864 have been purchased at a cost of $613 million.
Stamp duty concessions worth $13.7 million have been used by 577 homeowners.
Mr Kefford noted the demolition program is running ahead of schedule with 169 homes demolished as of May 20.
But delays negotiating the approval process for blocks under 700 square metres to be divided into two has meant 87 fewer blocks than planned have been sold in the last financial year.
Planned sales would be increased by 230 next year and 90 the year after in order to meet targets.
The Taskforce itself – with a staff of around 50 - will cost nearly $22 million over the life of the program - $5.5 million this year, $6.7 million next year, $$4 million in 2018, $4.1 million in 2019 and $1.4 million as it winds up in 2020.
Interest payments to the Commonwealth for the $1 billion loan it delivered to the ACT in order to rid the territory of the 50-year toxic insulation legacy, remain fixed at $27 each year.
