The Albanese and Allan Governments have unveiled a major $160 million support package to aid communities recovering from the devastating January 2026 Victorian bushfires, with a primary focus on clean-up efforts, mental health and business recovery.
The joint announcement brings the total relief funding to over $370 million, building on the $210 million previously committed for emergency relief and grants.
The bulk of the new funding – $112 million – will expand the state-coordinated Clean-up Program.
Forge Solutions has been appointed as the lead contractor and will prioritise hiring local tradespeople to assist with the recovery.
Crucially, this clean-up support covers uninsured and underinsured residential homes, sheds, garages and businesses.
Community assets, such as sporting facilities and halls that fall outside other coverage schemes, are also eligible.
Prime Minister Anthony Albanese said the funding reflects the national commitment to the region.
“The Federal Government is working hand in hand with the Victorian Government to provide immediate support for communities impacted by the devastating bushfires,” Mr Albanese said.
“At the worst of times, we always see the best of the Australian character.
“We’ve got their back, which is why we’re rolling out support now to support communities through the recovery.”
Recognising the economic toll of the fires, the package includes specific measures for primary producers and local enterprises.
$1.4 million has been allocated for Prolonged Power Outage Payments. Businesses that lost power for seven or more days may be eligible for $3088 per week for up to three weeks.
This runs alongside the existing household payment of $2380 per week.
Acknowledging the long tail of trauma associated with natural disasters, more than $6.9 million has been allocated to mental health services.
While the majority of the package is jointly funded, the Allan Government is investing a specific extra $2 million to place additional mental health services in government schools within fire-affected areas.
“This is a locally-led recovery, informed by what bushfire-affected Victorians need,” Premier Jacinta Allan said.
“We’ll continue to stand with communities as they start building back better and stronger.”
Rural households not connected to mains water can now access rebates of up to $1500 to clean and decontaminate rainwater tanks, roofs and gutters.
Furthermore, $16.1 million will go toward repairing public land and waterways, including fixing roads and bridges, pest control and protecting threatened species.
The support extends across a vast swathe of the state, with eligible Local Government Areas including Alpine, East Gippsland, Wellington, Greater Bendigo, and Yarra Ranges, among others.
Clean-up Program: Registrations are now open. Call 1800 560 760 or visit vic.gov.au/clean-support-january-2026-bushfires.
Emergency Recovery Support: For help navigating insurance, legal questions, and services, call 1800 560 760.
Business Advice: Visit business.vic.gov.au.
Donations: Financial donations can be made via the Victorian Bushfire Appeal at vic.gov.au/2026-Victorian-Bushfire-Appeal.
