A NSW taskforce is considering remediation of homes containing deadly loose fill asbestos, spending only $12 million, despite a parliamentary inquiry finding the houses should be demolished.

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.

NSW plans to spend a fraction of the $1 billion the ACT has allocated to buying back and demolishing up to 1000 homes to ensure public safety.

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.