The Department of Human Services has apologised to a family who were told they'd have to immediately pay back emergency payments granted to them after they lost everything in the recent bushfires in northern New South Wales.

Key points: Dane and Kath Armstrong and their two children lost everything in a bushfire at Nana Glen recently

Dane and Kath Armstrong and their two children lost everything in a bushfire at Nana Glen recently Ms Armstrong and her children were granted emergency Centrelink payments, but when Mr Armstrong applied he was told he was not in a disaster area

Ms Armstrong and her children were granted emergency Centrelink payments, but when Mr Armstrong applied he was told he was not in a disaster area Mr Armstrong was also told Ms Armstrong would have to pay back assistance immediately, causing stress to the family

The apology follows inquiries by the ABC to Centrelink to ask why the Armstrong family, who live in Nana Glen west of Coffs Harbour, were not eligible for the payments.

Kath Armstrong and her husband, Dane, and their two children, aged 8 and 10, fled their home at Nana Glen before a bushfire destroyed their home.

"We lost our two caravans that we lived in, we've lost our beds, everything that we owned pretty much," Ms Armstrong said.

"I had enough time to get some clothes out and a few small articles like birth certificates and photos, but everything to do with our house we've lost."

What remains of the Armstrong's home in Nana Glen. ( Supplied by: Kath Armstrong )

Ms Armstrong rang Centrelink straight away and received $1,000 for herself and $400 for each child.

They also put in an application for her partner, Dane.

"But we found out [this week] Dane's application had been cancelled because we weren't in the disaster area."

That was despite Ms Armstrong telling Centrelink that she and the children had already received the emergency payment.

"They said we don't even know how your wife has gotten that money," Ms Armstrong said.

"They wanted me to pay it back immediately.

"For one, I was in tears about it. And two, my partner didn't sleep all night stressing over it — that we had to repay it, that we were just treated like some low-life scum."

Ms Armstrong had enough time to get some clothes, birth certificates, and a few photos before the fire hit. ( Supplied: Kath Armstrong )

Ms Armstrong said her husband was extremely upset.

"It stressed him out to the point where he didn't sleep all night last night due to worrying about what was going on and whether we'd have to pay the money back," she said.

Ms Armstrong said they spoke to four different Centrelink staff and each time were given a different response.

"They were just blatantly rude, there was no support, every time we rang up no-one said 'hope you're OK' or 'does anyone need counselling?'"

"We just always got someone rude who didn't show any heart to us."

Ms Armstrong said it was not until her partner rang twice that they found out her payment was cancelled and they needed to pay back the money.

"We were already dealing with enough from losing our house and everything and then we get told that on top of it we've done something wrong, that we don't even deserve it," she said.

Since the ABC's inquiries, the Federal Government has extended its government assistance to the Coffs Harbour local government area.

The local government area had lost 13 homes as a result of the fires.

The Armstrong family lost almost everything in the bushfire. ( Supplied: Kath Armstrong )

Department of Human Services general manager Hank Jongen has apologised for the stress caused to the Armstrong family.

He said now that Coffs Harbour had been added to the eligible areas for the Australian Government Disaster Recovery Payment, people who had previously claimed the payment would now have their claims re-assessed.

Natural Disaster and Emergency Management Minister David Littleproud said the payments were for people whose homes had been badly damaged or destroyed, who had been severely injured, or who had lost a family member.

"This will give dignity to those who have suffered the worst in the fires."

He said anyone who met the criteria should contact the Department of Human Services to check their eligibility.

Income support has also been extended to Bundaberg, Lockyer Valley, Gold Coast and Toowoomba through the Disaster Recovery Allowance.

The allowance is also in addition to support payments already announced.

Mr Littleproud said this would provide up to 13 weeks' income support to those who had lost their income as a direct result of the fires.

"It's going to take time for life to return to normal and we'll be standing shoulder-to-shoulder with these communities until they're back on their feet," he said.

"We will make further support available for bushfire-affected communities as it is needed."