Volunteer firefighters in New South Wales will be able to apply for up to $6,000 in compensation from the Federal Government, Prime Minister Scott Morrison has announced.

Key points: The payments of up to $300 per person, per day will be tax-free and not means-tested

The payments of up to $300 per person, per day will be tax-free and not means-tested The money will be made available before the end of January

The money will be made available before the end of January Mr Morrison said other states and territories could request a similar scheme

But Opposition Leader Anthony Albanese said volunteer firefighters from all states should be able to access financial compensation for their efforts, not just those from New South Wales.

Mr Morrison said the money would be made available to NSW Rural Fire Service (RFS) volunteers who are self-employed or working for small or medium-sized businesses and who had been called out for more than 10 days this fire season.

The payments of up to $300 per person, per day — up to $6,000 in total — will be tax-free and not means-tested.

"While I know RFS volunteers don't seek payment for their service, I don't want to see volunteers or their families unable to pay bills or struggle financially as a result of the selfless contribution they are making," Mr Morrison said in a statement.

"This is not about paying volunteers. It is about sustaining our volunteer efforts by protecting them from financial loss."

The payments will be made to NSW volunteers who have been fighting the extensive bushfires. ( Supplied: Gena Dray )

Invitation open for other states

Mr Morrison said he expected other states and territories to request the same support, with a total cost of about $50 million this year.

"I respect the premiers, I respect the fire commissioners in every state and territory and I respect their judgement," he said.

"And should they wish to enter into this arrangement, if they believe it's appropriate for their state and territory, then we will do so."

But Mr Albanese argued firefighters outside NSW needed extra support now.

Mr Albanese said volunteer firefighters across the country needed compensation. ( AAP: Bianca De Marchi )

"What about the South Australians and Victorians who've given up more than 10 days travelling across at their own expense into New South Wales to fight fires, travelling to Queensland?" he said.

"This has been an issue that was raised with me across the country."

An 'insult' to Queenslanders

The Queensland Government criticised the compensation scheme, with the state's Minister for Police and Corrective Services, Mark Ryan, arguing it should cover the entire country.

"Quite frankly, I'm sick of this Prime Minister being a Prime Minister for New South Wales only," he said.

"He doesn't seem to ever think about Queensland.

"For him to come out and announce that he's only putting a scheme in place for New South Wales Rural Fire Service volunteers and not a national scheme, I think is an insult to all of those hardworking Queenslanders who are not only out and about fighting fires right now in Queensland, but have in the past and in very recent times helped their colleagues in New South Wales."

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 32 seconds 32 s Firefighters confronted by a hellish scene on Queensland's Sunshine Coast earlier this year.

Queensland's Rural Fire Brigades Association general manager, Justin Choveaux, said Mr Morrison's announcement would start a conversation for Queensland and urged the State Government to act now.

"We'd encourage the [Queensland] Government to get on to the Federal Government ASAP and also get on to the volunteer representative organisations in Queensland and say, 'How are we going to make this work for the benefit of the people who defend the state for free'," he said.

Pressure on Morrison Government

The Government has come under increasing pressure, including from within its own ranks, to compensate volunteers as devastating bushfires continue to burn.

Mr Morrison has previously said he had not received any requests from fire chiefs for volunteers to be paid but last week announced those who were also Commonwealth employees would receive an additional four weeks' leave to fight the fires.

"This announcement provides employees of small and medium-sized businesses and self-employed volunteers with the same level of support," Mr Morrison said.

"We expect larger companies to provide their employees with 20 days of emergency services leave."

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 2 minutes 14 seconds 2 m 14 s The Government had come under pressure from within its own ranks to compensate volunteers.

The Federal Government payments will be administered by New South Wales and are expected to be made available before the end of January.

Volunteer Fire Fighters Association president Mick Holton praised the Prime Minister's announcement.

He said some members spent their own money on expenses, including petrol spent driving to fire fronts and crowd funding for smoke masks.

"This payment is no different to any other worker making an out-of-pocket-expense claim for their employment," Mr Holton said.

"It's a step in the right direction — people will be rejoicing."

But he conceded there was concern compensation may attract the wrong types of volunteers.

"Sometimes when we have major fires we get people coming out of the woodwork. Many have skills and are worthwhile participants. Others maybe not so."