The NSW Labor opposition has urged the Premier to abandon plans for the $1 billion-plus relocation of Sydney's Powerhouse Museum and redirect the funding to the unfolding bushfire crisis and longer-term drought management.

Labor leader Jodi McKay criticised the decision to press ahead with the relocation of the museum to Parramatta in the city's west as an "indulgent use of taxpayer funds".

An artist's impression of the design for the new Powerhouse Museum in Parramatta.

"Spending at least $1.5 billion to move a museum is a colossal indulgence at any time - but especially when the state is burning and in drought, and our volunteer firefighters don’t have respirators," Ms McKay said.

"Parramatta deserves a cultural facility, but this could be delivered at a fraction of the price while respecting local heritage."