The Loose Fill Asbestos Taskforce won't report to the Baird Government until next month, but NSW Public Works has begun a tender process for companies to assess remediation options, including demolition.

It has valued the contract at $9 million to $12 million, a fraction of the $1 billion the ACT will spend buying back and demolishing up to 1000 homes to ensure public safety.

A taskforce spokesman said no decision has been made on demolition, and it would recommend the most cost-effective approach.

Three homes have tested positive for Mr Fluffy asbestos over the past fortnight in Queanbeyan, as a voluntary free testing program moves around NSW.

The Heads of Asbestos Co-ordination Authorities said on Friday that testing in Queanbeyan had shown "exposure is likely to be very low if the asbestos is undisturbed and remains sealed off".

But Nationals MP for Monaro John Barilaro disagreed and said any measure other than a buy-back and demolition of the homes was "a band aid approach".

"The idea that pathways such as vents, light fittings and manholes can be sealed to a point that completely limits asbestos fibres from entering living areas is, and has been proven to be, impossible," he said.

"As someone that has had twenty years in the building industry, you cannot limit pathways."

Of 1650 homes tested in 26 local government areas in NSW, seven have tested positive.

Another 682 homes are yet to be tested, while 57 more homes were discovered to be contaminated through historical record searches.

A NSW parliamentary inquiry last year found the demolition of homes containing Mr Fluffy insulation was the "only viable and enduring solution to address the ongoing health and safety risks to residents, visitors and the general public".

Mr Barilaro​ was a member of the parliamentary inquiry, and said Queanbeyan is "the epicentre of the crisis in NSW" because Mr Fluffy was a Canberra-based business.

"You cannot leave these homes standing. They are old homes and they are deteriorating over time," he said.

"There's no question that of the majority of stakeholders I have met with, and residents, a lot are comfortable with buy-back. They want to end this ugly period in their lives."

Mr Barilaro estimated a $70 million clean-up bill, based on purchasing 100 contaminated properties, of which half could be recouped from later land sales by government.

Asbestos material is expected to be taken to a special landfill site being established by the ACT Government.

The ACT hasn't started demolition yet, but has made offers on 708 homes, of which 513 have been accepted.

In NSW, homes in Kuring-gai, Bankstown, Manly, North Sydney, Parramatta and The Hills are among those to have tested negative.

In addition to Queanbeyan, positive tests have been returned in Yass Valley, Greater Hume and Berrigan.

The parliamentary inquiry was told by ACT officials that the ACT Government had discovered that despite remedial work "it would be impossible to prevent asbestos fibres moving within homes over the long term".

The NSW taskforce spokesman said the $12 million quoted in the tender wasn't an estimated budget for a buyback/demolition program.