The NSW Government will foot the bill for this quarter's council rates as part of their response to the bushfire crisis.

Key points: Bushfire victims will have their council rates waived this quarter, as part of the NSW Government bushfire relief plan

Bushfire victims will have their council rates waived this quarter, as part of the NSW Government bushfire relief plan The NSW Local Government Minister says expecting residents and business to pay rates after a bushfire would be "cruel and absurd"

The NSW Local Government Minister says expecting residents and business to pay rates after a bushfire would be "cruel and absurd" Fees for rebuilds, such as the BASIX certificate and planning reform fund, will also be waived

People who have lost their home or business will be able to take their rates notices to a Service NSW centre and rates will be waived within the next few days — or refunded if they have already been paid.

Sending out rates is a legal requirement for councils and the Minister for Local Government, Shelley Hancock, said changing legislation would have been clunky and time-consuming.

"It's a cruel, absurd situation where you send them a rates notice for a property that's burnt to the ground," Ms Hancock said.

"The Deputy Premier and Premier agreed immediately.

"They shouldn't be paying rates where they have no council services, no water, no sewerage, and it will be a while before they have a home to live in."

Ms Hancock said the proposal had been in the works for weeks, and noted that it took until now for the Premier to approve the deal.

Helping clean up

Premier Gladys Berejiklian said the State and Federal Government have committed to a 50-50 split for the cost of the clean-up from the bushfires.

The NSW Local Government Minister says it would be a "cruel, absurd situation" to expect bushfire victims to pay rates on properties that no longer exist. ( ABC News: Jessie Davies )

The cost is expected to run into the hundreds of millions of dollars.

Construction company Lang O'Rourke has been contracted to manage the work, which is expected to be completed by mid-year.

Ms Berejiklian said people needed to register through Service NSW to have their property cleaned up.

"We hope on the ground to have people start the process physically within the next couple of weeks," she said.

"The planning process has already started.

"There are already plans for which areas need to be targeted and dealt with, and it won't just be site at a time. It will be multiple sites across the state."

The Federal Treasurer, Josh Frydenberg, said the cost would normally be undertaken by insurance companies as part of household cover, but now that the government will meet that cost it should leave more money to engage the rebuild.

"The money will be spent on removing the fire debris from around houses that have been destroyed, commercial buildings that have been destroyed, and a whole range of other services involved in the waste disposal as well," he said.

Fees waived for DAs

Some fees associated with rebuilding will also be waived, as bushfire victims recover. ( ABC News: Stephanie Chalmers )

New South Wales Deputy Premier John Barilaro said the government would also offer fee relief to local councils for development applications in bushfire-affected areas.

"The NSW Government has been working closely with bushfire-affected councils and communities on options to facilitate the recovery and rebuilding process," Mr Barilaro said.

"I can confirm the NSW Government will waive applicable government fees, effective immediately, on all development applications related to dwellings damaged or destroyed in the recent bushfires.

"The fees include the BASIX certificate fee and the planning reform fund fee."

This meant local councils were not required to collect the planning reform fund fee when development applications are lodged.

Shoalhaven Council on the South Coast has already removed its development application fees for residents affected by fire.

Wingecarribee Council in the Southern Highlands is expected to follow suit when it holds an extraordinary meeting to discuss the issue on Thursday.

"This is what we've been working towards, to be able to give those fire-affected residents the best deal we possibly can," Wingecarribee Mayor Duncan Gair said.

"And as such this will now result in a zero DA fee to the residents who have lost their homes."