Snowy Valleys Council, which lost houses and farms in the Dunns Road fire, will also receive $1 million in immediate bushfire aid from the federal government.

Dr McGirr said the softwood industry around Tumut could have lost more than $250 million from plantation timber being destroyed by fire.

"I think the announcement is good, in that it was made so rapidly and it will give communities confidence," he said.

"We have had briefings on likely infrastructure issues here and I think the $1 billion is a good start but I suspect we will be looking at needing additional funds on top of that.

"Certainly the information we are getting from horticulturalists and orchards is that they will need more than $15,000 [on offer for businesses in the recovery package] to do their cleanups.

"The information from the Softwoods Working Group is that at least a quarter of a billion dollars will be needed to get that industry back on the ground."

The state recovery package includes funding for the clean-up of both insured and uninsured homes damaged or destroyed by the fires, mental health counselling and economic recovery.

Dr McGirr and Wagga-based Nationals upper house MP Wes Fang attended a bushfire briefing in Tumut on Thursday along with Premier Gladys Berejiklian and Emergency Services Minister David Elliott.

Mr Fang said the Premier's visit was "an example of how much this area means to the government".

"We are very focused on doing what we have to do to ensure the viability of industry, of tourism and of the communities here," he said.

"Joe and I have been working together very closely to make sure that what has been lost is returned as best it can be."

READ MORE:

Families Minister Gareth Ward also visited the Wagga evacuation centre at the Equex multi-sport complex on Thursday, which has been providing clothes, smoke masks and groceries to people fleeing the bushfire.

Riverina MP Michael McCormack said the federal government's $1 million payments would be made to fire-affected councils by close of business on Friday.

"We have always known regional communities are Australia's most resilient and in the devastation of these fires we have seen again the remarkable community spirit existing in our regions," he said.

"The immediate payments to councils will boost affected economies by supporting local small businesses, farmers and trades."