Australians will pay up to $100 million to remove foil insulation or install electrical safety switches in 50,000 homes, in further changes to remedy problems caused by the government’s suspected insulation scheme.

The government had earlier committed to test the 50,000 homes for ceilings live with electricity because of poor installation of foil insulation, to cost taxpayers $19 million. But the decision now is to remove insullation or install new switches, Assistant Climate Change Minister Greg Combet said yesterday, in order to ensure safety.

The changes also mean foil insulation is unlikely to be included under the $2.45 billion rebate program when it restarts on June 1.

The $1200 insulation rebate was axed by Environment Minister Peter Garrett last month after the deaths of four men and 105 house fires connected to faulty installation. Garrett was later stripped of his responsibilities for the program, which were given to Combet.

The government has also commissioned an external review of how the insulation program was rolled out, which will report back at the end of the month.