At least $2 billion will be pumped into a national bushfire recovery fund over the next two years.
Cabinet formally approved the National Bushfire Recovery Agency, which will be headed by former Australian Federal Police commissioner Andrew Colvin and be modelled on the similar agency set up after the Queensland floods.
The fund will support local governments, farmers and primary producers, and deliver mental health supports to first responders.
"If further funds are required, further funds will be provided," Prime Minister Scott Morrison said.
"We're focused on the financial cost, we're focused on the human costs, and ensuring we can do everything we can, as quickly as we can, to support that recovery effort."
The funding was in addition to Natural Disaster Relief and Recovery arrangements, which have provided $25 million
"The agency will ensure the work of state and territory governments is being supported and act as a 'one stop shop' central team to coordinate the response."
Twenty Service Australia mobile service teams will also open in fire-affected communities to help people access disaster payments.
"We have taken a number of decisions to streamline those payments to make sure cash gets into people's hands as soon as possible," Mr Morrison said.
Welfare debt recovery and mutual obligations requirements in bushfire-affected regions are also being suspended for at least two months.
Government Services Minister Stuart Robb said the mobile teams would have reliable internet connections to allow them to provide immediate help to affected people.
People affected by the bushfires can claim disaster payments by calling Services Australia (Centrelink) on 180 22 66 and find more information at humanservices.gov.au/disaster. As soon as it is safe to do so, mobile service centres will head into affected regions to assist with all government payment services, including disaster payments.