The New South Wales government says it will make an announcement next week on what it will do after Victoria launched an urgent investigation into the issue.
The response comes just weeks after at least 80 people died in London's Grenfell Tower inferno, shocking governments around the world into action.
In Australia, the Federal Government is asking the states to review their use of flammable cladding.
And some of them have already responded.
Victoria has announced it will audit buildings for safety compliance, with an initial report due in the next few months.
Former Labor deputy premier John Thwaites will co-chair the fast-tracked investigation and warns thousands of structures across the country could have safety issues.
"There does seem to be a problem of noncompliance right around Australia, and we have to change that. Near enough is not good enough. And that means people in the building industry have to understand they've got to follow the rules, and they have to understand they're likely to be audited if they don't."
He will be joined on the taskforce by former state premier Ted Bailleu, who says it is important to do a stocktake as soon as possible.
"We saw in London one of the most horrific scenes I think anybody has seen in recent years. We don't want to see anything like that anywhere in the world, but we need to make sure that we do the right thing here."
It is believed cladding similar to the kind in the Grenfell Tower was responsible for a large fire in 2014 at the Lacrosse high-rise building in Melbourne's Docklands.
Since then, dozens of buildings have been audited, and many have been found not to comply with regulations.
So the taskforce will now consider if the auditing and rectification process can be sped up.
But federal industry minister Craig Laundy has told the ABC comparing the Lacrosse building fire to Grenfell is not right.
"You're talking about a very different regulatory regime between our national construction code and what was in place for Grenfell. I don't want to cast aspersions on my UK counterparts -- I don't know their system well enough. What I do know is the national construction code, and I wanted to assure your listeners that, even when we do get a situation like Lacrosse, the system in its entirety comes into play, and, you know, that night, 600 people were removed from that dangerous environment."
The New South Wales government is also reacting.
The state's planning minister, Anthony Roberts, and federal minister Michael Keenan plan to make an announcement next week.
While there is no detail yet, Mr Laundy says New South Wales is considering tightening compliance.
"They are working right now, and Minister Roberts and Minister Keenan are working on the compliance side of the fence and the accreditation of the individual that assesses the system. And that's something that's been heard by us at the Building Ministers Forum a lot over the past six months, that we need to do a lot of work on who is actually signing off."
Meanwhile, in Queensland, Brisbane's Princess Alexandra Hospital is under safety watch after it was discovered to have non-fire-retardant cladding.
A Queensland inquiry is underway, investigating non-conforming building products, with a report due next month.
Mr Laundy admits there is no national figure on how many apartments with flammable cladding exist.
But he says it will be up to the states to investigate the cost of removing and replacing cladding.
