The scheme, which has existed in its current form since 2007, provides eligible adults with $1000 each and eligible children with $400.

So far, for the NSW bushfires, the money will go to people who have lost or had their homes significantly damaged, to those who have been seriously injured, or who have had an immediate family member killed.

But shadow attorney-general Mark Dreyfus has questioned why the Coalition has not included those who are cut off from their homes, despite there being a history of Labor including the group in the disaster payments.

When the Gillard government activated the scheme for the Tasmanian bushfires and Tropical Cyclone Oswald earlier this year, it extended funds to those who could not get to their homes for at least 24 hours because access had been cut off, to people who had been stranded at home for at least 24 hours or who had been without electricity or water for a continuous 48 hours.

''Mr Keenan has heartlessly removed assistance for people who have been cut off from their homes for more than 24 hours, or been without water or electricity for 48 hours,'' Mr Dreyfus said. ''Now is not the time for the government to be reducing assistance for NSW residents who need it most.''