Bega Valley Shire Council’s manager for health and building services Jeff Tipping confirmed the presence of asbestos at the damaged property on Wednesday.

“Council has served notice on the owner to secure the site and has made arrangements for a qualified asbestos removalist to inspect and advise council on recommendations to resolve the issues of containment and removal,” Mr Tipping said.

Concerned residents living near the former motel said they feel they should have been told of the substance's presence in person.

“Nobody came to knock on our door to advise us on what to do after the fire, even though we had big chucks of the motel all through our backyard, and there's still chunks flapping in the wind,” one resident who wished to remain anonymous said.

The NSW Environmental Protection Authority (EPA) said any building built before 1988 may contain asbestos in its walls, ceiling, roofing, pipes, electrical conduits and eaves. It states that asbestos dust and fibres have the potential to present a health risk during and after a fire if not properly managed.​

“It should have been fenced off straight away, kept damp with a PVA glue mix, and according to the EPA's guidelines kept wet until it's all removed,” the resident said.

“I mean, smoke was still coming from there the next day, and the hot winds were blowing it over the house.”

As a precaution, the family sent their children to stay with relatives in Tathra, and are concerned for the welfare of people entering the site, unaware of the risks.

“It's been a school holiday so kids were out in the street playing, and there have been kids and homeless people, and all sorts, in and out of there for years,” the resident said.

“I’m concerned about those who are naive to the hazards and potential hazards of asbestos – there is no sign warning people.”