Formaldehyde is a ticking time bomb for another asbestos like health disaster, unions say.

The Construction, Forestry, Mining and Energy Union (CFMEU) says that the use of formaldehyde in products in houses and commercial buildings poses a significant health threat to Australians.

Formaldehyde is used in furniture and other products used in both homes and commercial properties, and is prevalent in particle board.

A recent report showed that the Government needed to act faster to move staff in the Northern Territory out of shipping containers that contained high levels of formaldehyde.

The union says that formaldehyde will pose a significant risk to construction workers and those with high exposure, with questions over the level of carcinogens within products including particle board.

"With the combination of both those short-term exposures but also the potential of increased cancer risks with long-term exposure that's a convincing argument that we should be using the safest standard possible here in Australia," the CFMEU's Martin Kingham said.

"There's also a long-term health effect for ordinary householders - particularly when you think of a kitchen, kitchen cupboards, that's where you store food, and tests have indicated that the formaldehyde cures out of the product into the air for up to 20 years after it's been installed."

The union is calling for further regulation around it's use.