Compensation over pink batts scandal

The families of four young workers killed under the home insulation scheme will be compensated.

Prime Minister Tony Abbott on Tuesday unveiled the government's initial response to the royal commission into the Labor scheme.

He told parliament he has asked the environment and finance ministers to provide "options to compensate" the workers' next of kin.

"Matthew Fuller, Rueben Barnes, Mitchell Sweeney and Marcus Wilson went to work and tragically they did never return home and the report makes it clear that their deaths would have been avoided had things been done differently," Mr Abbott said.

Employment Minister Eric Abetz will examine workplace health and safety laws and the specific issue of safety in roof cavities will be raised at the Council of Australian Governments (COAG) meeting on October 10.