The NSW government will tip an additional $1 billion over the next two years into bushfire management and recovery amid an unprecedented fire season in which almost 2000 homes have been razed.
Premier Gladys Berejiklian on Thursday said the new funding would prioritise infrastructure repair and help stimulate fire-ravaged NSW communities.
The funding was on top of $231 million already committed to disaster assistance, which included $166 million specifically for fire fighting.
"This is to rebuild communities and focus on infrastructure that's either been damaged, destroyed or need improving, and it's to ensure that communities can have confidence in rebuilding," Ms Berejiklian told reporters.
The burnt out remains of a house is seen from a bushfire in the Southern Highlands town of Wingello, 160km south west of Sydney. Source: AAP
"That could be a bridge, road, rail line, school, hospital or also extend to communications and energy infrastructure as well.
"We are always standing shoulder-to-shoulder with those impacted by this devastating catastrophe that's come to NSW."
Ms Berejiklian said she had agreed with the federal government that her government would focus on infrastructure repair while Canberra would prioritise direct payments for individuals and businesses.
Destruction toll mounting
Fire crews will take advantage of cooler conditions across NSW as they battle to control several blazes ahead of forecast worsening conditions.
Authorities, meanwhile, have confirmed that 1,870 NSW homes have been destroyed since the start of the fire season, with more than 750 damaged. More than 950 have been confirmed destroyed in 2020 alone.
Almost 200 facilities and 3,774 outbuildings have also been razed.
Rain and cooler temperatures are forecast across the bushfire-ravaged NSW south coast on Thursday, as well as in Sydney.
A "very high" fire danger is in place for northwest NSW, the southern slopes and the northern slopes on Thursday but no total fire bans have been declared.
NSW Rural Fire Services spokesman James Morris said crews will work on backburning as much as they can and will strengthen fire containment lines ahead of increased temperatures on Friday.
"On Friday we are likely to see increased conditions but at this stage we are not looking at seeing significant risks," he told AAP on Wednesday.
Residents around bushfire areas are advised to continue to monitor the situation as conditions can change quickly, he added.
The favourable conditions have also helped energy crews restore power to most south coast and Southern Highlands communities after bushfires caused widespread damage over the weekend.
Eurobodalla Shire Council advised residents via Facebook to be ready to relocate ahead of Friday's forecast hot conditions.
Boil water notices remain in place in several south coast areas.
More than 120 fires continue to burn across NSW, with almost 60 uncontained.
Two men, from Kiah and Lower Towamba, reported as missing on the far south coast were located safe and well on Tuesday.
Since July 20 people, more than 6200 livestock and millions of wild animals have died in bushfires across NSW.
