Prime minister Kevin Rudd will aid 6,000 workers who are now unemployed after the suspension of the Australian home insulation scheme.
He has set aside AUS$41 million (£24 million) to help businesses keep hold of staff until the new scheme starts in June, or to aid people in finding new jobs or attending training courses.
The government will not walk away from its responsibilities, he commented.
"Many of these people are good, honest workers whose jobs have been disrupted because of a small number of shonky operators," the prime minister said.
The nationwide energy-saving plan saw tens of thousands of Australian homes fitted with roof foil insulation, but was halted after several deaths.
If fitted incorrectly, the foil can conduct electricity, and safety inspections into the problem are currently underway.
An interim audit earlier this month found several Australian properties that may be dangerous.
Posted by Steve Douglas