The tally of homes and other buildings destroyed by a fast moving bushfire in a seaside town on New South Wales' far south coast is likely to rise, the Rural Fire Service Commissioner has warned.
Around 70 homes and buildings are believed to have been destroyed, including a popular caravan park, in Tathra east of Bega, by the fast-moving blaze that broke out on Sunday.
Commissioner Shane Fitzsimmons said that figure was likely to rise though during an interview on Sunrise on Monday morning.
"It's far from being under control at this stage... we've still got this awful situation throughout the community of Tathra where we've damaged buildings, damaged homes..." he said, before adding the tally of impacted buildings was "likely to climb above 70".
He described the blaze as a "firestorm".
"It was raining fire embers through the township - there were spot fires starting all throughout the streets of the town," he told 2GB Radio.
The fire, fanned by very strong winds and high temperatures in the state's east, burned through several kilometres of bushland and crossed a river before it reached the picturesque township.
Hundreds of residents and tourists fled to evacuation centres in Bega and Bermagui, after access to Tathra cut off, to spend the night waiting for news.
No-one has been reported missing so far, but residents have been traumatised by the speed of the flames which took barely half an hour to cross the Bega River and hit the Tathra area.
"It's horrible but it could have been a lot, lot worse," one resident told Nine Network on Monday.
Bega Valley mayor Kristy McBain said about 35 properties had been damaged or destroyed and the town's roads, water system and sewage treatment plant were also damaged.
The NSW Rural Fire Service says the 1000-hectare blaze is still out of control.
However, the threat level was downgraded late Sunday night after a southerly wind change helped ease hot conditions.
Communication were affected after a mobile phone tower collapsed, making it difficult to determine how many people remained in the town.
"There are no reports of any loss of life, so it will be very much about trying to track these people down," Ms McBain told AAP.
Assessment teams are due to arrive in the area on early Monday to inspect properties and confirm the damage.
Tathra Beach Motor Village said it had experienced "significant" damage and would be closed until further notice.
The blaze tore through its front office and reception area but management wasn't able to confirm what other parts had been affected.
"This is a very dire and devastating situation for all involved," a post on the park's Facebook page said.
Tathra Public School, Bega High School, Tanja Public School and Bournda Environmental Education Centre will all be closed on Monday. It's unclear if any have been damaged or destroyed.
The Insurance Council of Australia has declared the fire "catastrophe", meaning claims by those affected by the blaze will be given priority.
However, the ICA said it's too early to determine the extent of buildings lost or estimate the financial toll.

Tathra is located on the far south coast of NSW. Source: Whereis.com
Temperatures are expected to reach 30C in the Bega region on Tuesday, with light easterly winds in the afternoon.
Fires still blaze across Vic's southwest
A cool change is expected to assist hundreds of firefighters as they return to battle blazes ravaging Victoria's southwest on Monday.
Up to 18 homes are believed to have been destroyed in bushfires across Victoria's southwest that have also killed livestock and razed pastoral properties.
The latest toll comes as authorities welcome a cool change overnight that they hope will ease conditions for more than 700 firefighters who are still tackling active bush and grass blazes.
Victoria's emergency management commissioner Craig Lapsley says the main concerns are fires at Cobden and Penshurst, where watch and act alerts remain active.
"We're getting on top of the fires. The winds are down. The day's a milder day. The temperature backed off. Today will be a good day in that sense," Mr Lapsley told the Nine Network on Monday.
About 1700 properties remain without power and Mr Lapsley warned those affected might have to make do for a bit longer because power poles and other infrastructure have been damaged.
"To restore the power is a big issue in some parts of those fires."
Warrnambool Incident controller Russell Manning said his team on Monday will try to bring the eastern edge of the fires under control with the help of six fire bombing apparatus and two helicopters.
A team of 16 vets will also work in the area to assist animals hurt in the fire.
The Colac Incident Control Centre will keep tackling the fires from Terang, Garvoc to Camperdown with more than 400 personnel and 47 vehicles.
Apart from the housing toll, hundreds of beef and dairy cattle have also been killed and about 40,000 hectares of prime pastoral and other lands burnt out.
Some of the hardest hit areas include Cobden and Terang to Camperdown.
About 800 people sought shelter at evacuation centres and many were still there on Monday.
Corangamite Shire Mayor Jo Beard, whose council covers the Cobden area, said residents and farmers were trying to be brave as they waited to hear the extent of the damage.
"It's been devastating honestly, particularly on the farmers who have been through so much in the last couple of years," she told the Nine Network.
"It's a massive hit. It's such an unknown how this will play out. We're all still very much on edge."
It's believed not all of the homes destroyed were occupied.
There have been no reports of deaths or people missing so far.
The state government will provide immediate personal hardship payments, worth about $1900 per household, for food, clothing and shelter with assessment for further support.
Police and fire investigators are yet to determine the cause of the fire but authorities say it's likely to be due to lightning strikes.
The major grass and bushfires began on Saturday, raged through the night and continued to burn on Sunday into Monday.
Homeowners with insurance will be given priority for their claims after the Insurance Council of Australia declared the fires a catastrophe on Sunday night.