The Federal Environment Minister is concerned koalas could now be endangered in some areas as the Government establishes a $50 million emergency fund to address the devastating loss of wildlife this bushfire season.

Key points: The $50 million in funding will be split between an expert advisory panel and community groups

The $50 million in funding will be split between an expert advisory panel and community groups Koalas will be a focus for restoration efforts, with as much as 30 per cent of koala habitat destroyed

Koalas will be a focus for restoration efforts, with as much as 30 per cent of koala habitat destroyed Wildlife specialists describe "the bodies of charred animals as far as the eye can see" in bushfire-ravaged areas

The "initial contribution" funding comes from the $2 billion bushfire relief fund announced by Prime Minister Scott Morrison last week.

"This has been an ecological disaster, a disaster that is still unfolding," Treasurer Josh Frydenberg said.

"We know that our native flora and fauna have been very badly damaged."

More than 10 million hectares of land has been razed by bushfires across the country, with more than 8.4 million hectares destroyed in New South Wales.

A kangaroo sanctuary on the Mid South Coast has been decimated. ( ABC News: Mark Reddie )

Environment Minister Sussan Ley says koalas suffered an "extraordinary hit" in the fires and the Threatened Species Scientific Committee will need to assess whether koalas have moved from a vulnerable listing to being endangered in some parts of the country.

Half of the emergency wildlife and habitat recovery fund will go to frontline responder groups including wildlife carers, hospitals and zoos including Zoos Victoria, Adelaide Zoo and Taronga Zoo.

The other $25 million will help fund a government advisory panel led by Dr Sally Box, the newly appointed Threatened Species Commissioner.

Dr Box will chair a panel of experts from "CSIRO, from the universities, from the zoos and from our own Indigenous advisory committee … ecologists, conservation biologists [and those with] expertise in captive breeding".

The panel will map bushfire-affected areas, determine newly endangered or vulnerable flora and fauna species, and plan for long term habitat restoration.

A 'historic environmental challenge'

Over 1.25 billion animals are thought to be dead in the wake of bushfires, while experts say hundreds of billions of insects may have been wiped out.

Wildlife death estimations take into account animals killed during the fires and those who die in the aftermath from destroyed habitat, compromised food sources or predators such as cats and foxes.

University of Sydney ecologist Chris Dickman said many species may be extinct before they were discovered and documented.

Bushfires critically endangered the greater glider whose thick pelt is prone to overheating. ( Supplied: ACF )

As much as 30 per cent of koala habitat has been destroyed, leaving grave fears for the koala population.

A naturally dense pelt and a tendency to climb upwards when threatened have disadvantaged the koala population as bushfires were recorded travelling as fast as 60 kilometres an hour.

Ms Ley said the outcome of bushfires has created a "historic environmental challenge".

"We need to be guided by scientific experts in the field, by our national research bodies, the traditional owners who have managed this land over tens of thousands of years, our farmers whose passion and commitment to the land spans generations and our local communities," she said.

Finding an animal 'like a miracle'

A director of Port Macquarie's Koala Hospital has cautiously welcomed the wildlife package as "a good start" but "no way enough".

Cheyne Flanagan said it was a relief the Government was acknowledging wildlife were in serious trouble but action was needed long before now.

"It's such a shame that all this wasn't occurring a long time ago and protection measures weren't put in place," she said.

Humane Society International (HSI) chief executive Erica Martin welcomed the pledge but said an "elevation of funds to the environment will be needed to sustain for the long term".

The Port Macquarie Koala Hospital's water drinking stations. ( ABC Mid North Coast: Luisa Rubbo )

HSI's senior specialist in disaster response Kelly Donithan said she has witnessed "some of the toughest scenes I've ever witnessed as an animal rescuer: the bodies of charred animals as far as the eye can see".

"But as we set out each day on search and rescue, we're still finding animals alive, injured, dazed or traumatised, and it's such a relief to be able to give them immediate life-saving assistance.

"We've seen kangaroos with devastating burn injuries and dehydrated koalas gasping for water. Amidst all this death, every time we find an animal alive it feels like a miracle."

How to help

Monetary donations can often be one of the most useful ways to help services like charities, fire brigades and animal rescue.

The needs of first responders and victims are great and varied and it's the services and charities on the frontline who are best placed to know what is needed and where.