Progress is being made to rid the ACT and News South Wales of the toxic legacy of Mr Fluffy insulation.

The NSW Government is setting aside as much $250 million for a voluntary home buyback scheme for houses pumped full of potentially deadly loose-fill asbestos roof insulation in the 1960s and 1970s.

While just 66 Mr Fluffy homes have been found in the states, authorities say the scheme could see more than 500 bought back and demolished in places like Queanbeyan, Yass, Bungendore, Lithgow and even Manly.

The announcement comes just days after the ACT Government said it would soon inform up to 30,000 former owners or renters of the 1021 Canberra homes confirmed to contain the toxic insulation.

The ACT government plans to make the addresses of these homes available to the public this week.

It is understood that the ACT Asbestos Response Taskforce will set up an e-register in which people with a connection to one of the addresses can record details.

This will along the Government to provide targeted information and communication from the taskforce, as well as deeper community education.

To date, the taskforce has made offers on 575 homes (worth $647 million), and has seen 848 offers of purchase accepted by homeowners, while 578 relocation grants have been paid to support owners move to safer accommodation at a cost of $7.2 million.

The government has also spent $8.6 million to provide stamp-duty waivers for owners buying other property in the ACT.

But the voluntary NSW buyback scheme is more flexible than the Mr Fluffy buyback program currently operating in the ACT.

Most significantly, home owners in NSW will be able to keep their blocks.

They have the option of selling their house and land at market value to the Government, or selling only the house.

This option will be especially helpful to people living on farms or old family blocks.

“This package will provide safety, certainty and support for our citizens and an enduring solution,” NSW Finance Minister Dominic Perrottet said in a statement.

The NSW asbestos scheme includes a taskforce to carry out the program; a public register of Mr Fluffy homes; warning statements on house contracts; free asbestos testing across large parts of the state; and mandatory labels on contaminated buildings to protect tradespeople.

Those that do not participate in the program will be hit by the cost of future demolition or repairs, and a significant reduction in the value of contaminated properties.