Cricket Australia will push ahead with the third Domain Test in Sydney this week despite the possibility bushfire smoke will cause delays to the marquee match.

As cricket prepares to honour victims of the bushfires around the country, officials say play will be suspended during the Test should smoke significantly affect air quality or visibility.

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Players from both Australia and New Zealand will wear black arm bands at the SCG as a mark of respect for those who have lost their lives in the tragic fires, while emergency services personnel will be honoured during the pre-match ceremony.

Cricket Australia has also announced the ODI matches between Australia and New Zealand at the SCG in March will involve fundraising for the Australian Red Cross Disaster Relief and Recovery Fund.

Numerous fires continue to burn across New South Wales, including on the outskirts of Sydney, and harmful smoke has blanketed the city at various times in recent weeks.

The KFC BBL game between the Sydney Thunder and the Adelaide Strikers 12 days ago in Canberra, 250km south-west of Sydney, was abandoned when smoke enshrouded Manuka Oval and made conditions dangerous.

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Umpires initially only suspended play - the decision to call the game off was made later when conditions did not improve - in line with regulations that will be in place for the SCG Test.

Similar to delays caused by rain, officials will be able to stop play temporarily and then resume if the smoke blows away and conditions improve. They will also be able to make up the overs in ensuing days by starting earlier and/or finishing later.

Despite the abandoned game in Canberra, three BBL games have been played in Sydney without incident since the season began more than two weeks ago.

"It's a growing issue that we're seeing around the country, certainly Sydney and Canberra mainly," said Peter Roach, Cricket Australia's Head of Cricket Operations.

"Like rain, the rules are in place to add time, to suspend play (for Tests). But what we're finding is it comes in quick but also goes quick.

"It's unlikely, we believe, it'll be there for a full day.

"We might see some challenges across that day, but we'll play it like rain or adverse weather. Time can be added on."

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Peter Siddle was treated for smoke inhalation after bowling just two overs in the Canberra BBL game, putting the issue of air quality firmly in the spotlight.

"If you sit next to a campfire, just imagine that, that's what it felt like out on the field," Siddle said.

The ACT Health's Air Quality Index (AQI) soared above 1300 during the abandoned BBL match, well above the average reading of 300 that is the International Cricket Council’s guideline.

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On Wednesday, as smoke from the tragic coastal fires reached the nation’s capital, the air quality soared to beyond 4700.

However, air quality in Sydney on Tuesday remained below a hazardous level.

The final day of NSW's Marsh Sheffield Shield match against Queensland at the SCG in early December was marred by thick smoke that was labelled “toxic” by Blues spinner Steve O’Keefe, although the air quality remained at a safe level and play continued.

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Australia coach Justin Langer said the tragic fires had put the Test match into perspective.

"The reality is this is a game of cricket," Langer said. "Our hearts go out (to everyone affected).

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"It will be the first time I'll ever say this in my life, I hope it rains a bit during the Test because Sydney needs it."

Cricket Australia and the Australian Cricketers' Association have taken initial steps towards developing a new smoke policy.

Domain Test Series v New Zealand

Australia squad: David Warner, Joe Burns, Marnus Labuschagne, Steve Smith, Matthew Wade, Travis Head, Tim Paine (c, wk), Pat Cummins, Mitch Starc, Nathan Lyon, James Pattinson, Michael Neser, Mitchell Swepson

New Zealand: Todd Astle, Tom Blundell, Trent Boult, Colin de Grandhomme, Matt Henry, Kyle Jamieson, Tom Latham, Henry Nicholls, Jeet Raval, Mitchell Santner, Tim Southee, Ross Taylor, BJ Watling, Neil Wagner, Kane Williamson (c)

First Test: Australia won by 296 runs in Perth

Second Test: Australia won by 247 runs

Third Test: January 3-7, SCG (Seven, Fox & Kayo)