Under changes announced on Tuesday, a rule that owners can be forced to pay rent for the right to stay in the property while they are appealing the amount of compensation being offered has also been scrapped.

However, Premier Mike Baird and Finance Minister Dominic Perrottet were forced to defend the 2½ years it has taken for the government to respond to recommendations of a report on how to make the compulsory acquisition system fairer.

They have also rejected a key recommendation of the report by David Russell SC that all home owners be compensated on a "reinstatement basis" to ensure they can afford to an "equivalent" home. This compensation will only apply in "limited and specific" circumstances.

"In certain circumstances, it may not be possible to be reinstated in exactly the same suburb," Mr Perrottet said, arguing the package was "the fairest and most generous in the nation".

"We believe that it will provide the support and give the flexibility for people to be able to purchase a home in an area in which they live [or] nearby," Mr Perrottet said.

But Opposition Leader Luke Foley said the Russell report had been "deliberately hidden from the public" and "thousands of families have been ripped off here by Mr Baird's government".

Labor roads spokeswoman Jodi McKay said the government "has been absolutely shamed into releasing this report" and the announcement was an admission it had "cheated hundreds of people".

Greens MP for Newtown Jenny Leong said the announcement does not fix the problem of homeowners "being robbed of the market value of their homes by an average of $200,000 to $300,000".

Fairfax Media revealed in January that the Russell report was handed to government in February 2014 but had yet to be released and most recommendations not acted on while hundreds of millions of dollars worth of private property was acquired.

Many landowners have complained they are being compensated at below market value and unable to purchase an new home in the same area.

Releasing the Russell report on Tuesday, the government said it would abide by most of its recommendations.

There will be a fixed six-month period before the compulsory acquisition process begins to give owners more time to negotiate "a fair amount of compensation" with the acquiring agency.

The maximum compensation for disturbance – known as solatium – will rise from $27,235 to $75,000. This will be backdated to cover all acquisitions from February 2014.

Mr Perrottet estimated, with around 400 properties being acquired per year, it will cost an extra $60 million.

After Fairfax Media reported on homeowners whose properties were acquired being forced to pay rent, the government said the practice would be scrapped, from Tuesday, for the 90 days they are legally entitled to remain.

In other changes, a dedicated case manager would provide "help and support" for property owners going through an acquisition.

In August, leaked documents revealed Mr Perrottet had urged Mr Baird to "urgently" act on the Russell report recommendations.

Mr Baird said he was waiting for a report from NSW Customer Service Commissioner Mike Pratt, which was also released on Tuesday.

Among its recommendations is a new role of Personal Manager Acquisitions to help landowners and tenants navigate the process.

Pauline Lockie, a spokeswoman for the WestConnex Action Group whose home has been acquired, said an extra $50,000 for solatium "is not nothing".

"But if you've been left out of pocket by a six-figure sum, that's not going to right the wrong that's been done to you," she said.

"There doesn't see to be anything in these reforms to stop Roads and Maritime Services and other government agencies making people fight for their entitlements. Unless that culture changes, these reforms will be meaningless."