Mr Fluffy explainer: Asbestos taskforce details compensation scheme for Canberra homeowners

The asbestos taskforce says it is confident contaminated sites can be fully remediated after houses are demolished.

The ACT Asbestos Taskforce has given details of a new buyback and demolition scheme, as Canberra homeowners affected by the Mr Fluffy crisis face difficult decisions about their next steps.

The crisis arose as a result of a company known as Mr Fluffy pumping the material into homes as insulation during the 1960s and 1970s.

A Commonwealth funded clean-up program in the 1980s and 1990s failed to remove all trace of the fibres.

The ACT Government has now accepted a $1 billion Commonwealth loan to start a five-year scheme to buyback and pull down 1,021 Canberra houses containing loose fill asbestos fibres, and then sell off the land.

The taskforce has decided that all homes contaminated by the material should be demolished, with that process set to take several years.

Taskforce head Andrew Kefford gave details of the scheme to 666 ABC Canberra and said further information was being posted out to affected homeowners.

Mr Kefford said participation in the ACT Government's buyback scheme was voluntary.

"The advice we have is that it is possible, with some intervention, to remain in the homes in the medium-term, and that's part of how we're seeking to give families time and space to choose when they move, to where they might choose to move," he said.

"We've released a lot of information yesterday, there's time for people to digest that.

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Mr Fluffy explainer: Asbestos taskforce details compensation scheme for Canberra homeowners