The insulation programme was suspended after it was linked to a number of electrocution deaths.
Tens of thousands of homes will now have to be checked.
Improperly installed foil insulation can conduct electricity from mains cables, effectively making the entire roof cavity live.
The national insulation programme was a key plank of the Rudd government’s environmental strategy, and offered rebates to householders who wanted to conserve energy.
But the metallic foil used in older houses has already killed four electricians who were installing it, the most recent incident coming last week when a 25-year-old contractor was electrocuted in the roof of a home in far north Queensland.
It is believed the metallic foil came into contact with electricity cables, thus making the roof cavity live. For more information