Rebuilding from the rubble as bushfire disaster eases

Residents are returning to parts of Victoria ravaged in week-long bushfires, as authorities boost financial aid for those hit by the natural disaster.

The fires, which have burned more than 400,000 hectares since sparking in a heatwave last week, eased on Tuesday on the back of more favourable weather.

But several major fires continue to burn out of control, including the massive Longwood blaze, which has destroyed 90 homes and burned 144,000 ha.

The fires have razed at least 500 buildings including more than 200 homes, damaged 1000 farms and been linked to the death of farmer Maxwell Hobson, whose body was found on Sunday in a fireground in the state's northeast.

That fire, near the town of Alexandra, was suspected to have ignited from a trailer causing sparks on the Hume Freeway, authorities told AAP, adding arson had not been ruled out.

Premier Jacinta Allan said a $15 million recovery package would kickstart clean up in bushfire-affected regions, with an initial $10 million to help uninsured residents remove damaged structures and hazardous materials.

Another $5 million will be spent to waive waste levies in eligible local government areas and fully cover landfill operator gate fees.

"This is to provide that immediate support to start that rebuilding journey. It's a long one, but we need to start it with the clean up work, which is what this funding is for," Ms Allan said.

It comes after the premier on Monday announced emergency relief of up to $52,250 for uninsured residents to re-establish homes.

"We have hundreds of structures that have already been lost or damaged, we know that number will grow," she said.

The Insurance Council of Australia said insurers had received 1386 bushfire-related claims since January 7, including for property, commercial, motor and business interruption losses.

Agricultural losses continue to climb, with Victorian Farmers Federation estimating statewide livestock deaths at 16,500, made up mainly of sheep.

"We're expecting those numbers will climb particularly in areas like Longwood," federation president Brett Hoskins told AAP.

Emergency Management Commissioner Tim Wiebusch said he expected conditions to aid firefighters until at least Thursday.

But authorities warn hotter temperatures towards the end of January could cause fires to flare.

At the hard-hit town of Ruffy, in the state's north, fifth generation farmer Colleen Furlanetto said her house had been spared, but fire had destroyed a relative's property.

"My family has never seen anything like this. This is off the charts," Ms Furlanetto told AAP.

Prime Minister Anthony Albanese offered his condolences to Mr Hobson's family and friends, saying the entire local "community will be grieving" following his death.

Authorities have described the bushfires as the worst to hit southeast Australia since the 2019-2020 Black Summer, which killed 33 people