Senior Australian of the Year and paediatrician Dr Sue Packer chaired the group and has called the crisis "a clear example of an evolving and enduring catastrophe", which was "entirely preventable" had the Commonwealth government heeded warnings about the dangers of asbestos in the 1960s.

The Mr Fluffy saga affected 1023 Canberra homes, which were insulated between 1968 and 1979 with the loose-fill asbestos now commonly known by the same name.

After looking into the issue as part of the Mr Fluffy Legacy Project, the community and expert reference group has included recommendations under six key themes in a draft discussion paper.

The report has been provided to Mr Fluffy homeowners, who have until September 11 to review it before it is finalised for the ACT government.

The recommendations include that a board of inquiry be established to examine the crisis and the policies and programs developed by authorities in response to it.

Chief Minister Andrew Barr has previously all but ruled out a full board of inquiry - the territory equivalent of a royal commission - because he had failed to win the federal government's support and wouldn't do it without them.

But Dr Packer wrote that lessons should be learned from a board of inquiry, then documented and shared with other jurisdictions to ensure there was no repeat of the crisis when a new issue or contaminant emerged.

The Mr Fluffy issue initially emerged, she said, because federal authorities allowed loose-fill asbestos insulation to be installed in Canberra homes against the 1968 advice of the then-health department.

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This was followed by what Dr Packer called "further poor decisions intended to correct the error", before authorities determined in 2014 that the only way to deal with the issue was to demolish all affected homes.

"This whole loose-fill asbestos saga was entirely preventable, had the then known dangers of asbestos and the advice given at the outset been heeded," Dr Packer wrote in the discussion paper's foreword.

She urged the ACT government to commit to the implementation of the report's recommendations when it was finalised.

"There should never be another Mr Fluffy," Dr Packer wrote.

The community and expert reference group will also recommend ongoing government support for the Australian National University's ACT Asbestos Health Study, in order to monitor the ongoing health impacts on homeowners and potentially expand it to include those who rented, visited or worked on Mr Fluffy homes.

The study initially ran from 2015 until 2017 and found the rate of mesothelioma in men living in Mr Fluffy homes was two-and-a-half times higher than in men not living in those houses. There were no mesothelioma cases among women.

The community and expert reference group will also urge ongoing, tailored support for Mr Fluffy homeowners to access mental health and general practitioner services, along with training for health workers so they are better equipped to deal with Mr Fluffy-specific cases.

"All [homeowners] are living with the possibility of developing mesothelioma, a fatal, asbestos-caused cancer, for themselves and others exposed to the asbestos in their homes," Dr Packer wrote.

"Indeed, some loved ones and tradespeople have.

"The huge uncertainty of whether or when this dread might become a reality is the the enduring nightmare for many and the reason for this massively expensive and traumatic demolition of 979 homes to date."

Another key recommendation centres on education, with the establishment of a PhD scholarship for work related to the legacies of Mr Fluffy. This could include compiling a history or biographies, or research into treating the ongoing mental illnesses and stress in people exposed to asbestos.

The community and expert reference group will also encourage the ACT government to ensure there is a tangible and physical recognition of the Mr Fluffy crisis.

To record Mr Fluffy stories, it will recommend steps including the curation of a collection of stories, poetry, art, interviews, photos and songs for the Canberra Museum and Gallery.

A small pocket park or place of reflection should also be established, according to the group, with trees and plants to represent lost homes and gardens, and an interpretive plaque or signage acknowledging the Mr Fluffy story.

Rachel Stephen-Smith, the minister responsible for the ACT Asbestos Response Taskforce, said the trauma and anxiety that many people would continue to experience as a result of Mr Fluffy came through clearly in the discussion paper.

She acknowledged that while the taskforce's formal role would come to an end on June 30 next year, Mr Fluffy's legacy would continue to affect thousands.

"We support the work of the community [and] expert reference group in exploring options for the legacy project and encourage people who have a view to have their say," Ms Stephen-Smith said.

"We also know that participating in this process may itself raise anxiety for people, and supports are in place for anyone who needs them."

The community and expert reference group is comprised of Dr Packer, former ACT Bushfire Recovery Centre director Chris Healy, former Woden Community Service director Chris Redmond and Master Builders Association ACT chief executive Michael Hopkins. Ms Healy and Mr Redmond both owned Mr Fluffy homes.