The announcement comes as a relief to residents of Oberne Creek, a small rural town south of Tarcutta, who were initially told they were unable to access government assistance due to the area being included in the Wagga local government area categorised as 'unaffected' by fires.

Both Wagga and Cootamundra-Gundagai councils have now been added to the list of areas eligible for bushfire disaster funding support.

Jointly funded by the state and federal governments, the Disaster Recovery Funding Arrangements means grants of up to $75,000 are now available for eligible primary producers and $50,000 for eligible small businesses.

Riverina MP and Deputy Prime Minister Michael McCormack said 16 LGAs across the state can now access the funding.

"I have spoken with residents in the Oberne Creek area who were affected by the Dunns Road fire and assured them everything would be done to assist," Mr McCormack said.

"I know regional Australians are resilient but they also need to know the Federal Government will stand with them as they move to rebuild after this disaster."

Mr McCormack said the total funding of up to $100 million would be able to assist with more than just rebuilding homes.

"This funding can go towards repairing damaged equipment and fencing and replacing stock - it will help farmers and small businesses to get back on their feet," he said.

Assistance measures available under the DRFA may include help for damaged belongings and homes, support for local councils restoring damaged public assets, concessional interest rate loans for small businesses, primary producers and non-profit organisations, and provide freight subsidies.

Minister for Natural Disaster and Emergency Management David Littleproud said up to an additional $23.05 million had been made available to extend the community recovery assistance program under the DRFA.

"A total of $4.05 million will go to delivering mental health services for communities, volunteers and emergency services staff in these 16 new areas," Mr Littleproud said.

Oberne Creek resident Marilyn Starr, who has lived in the community for the past 11 years, described the funding announcement as a huge relief.

Ms Starr said it was a "great opportunity for everyone to get back on their feet".

While news of the $75,000 grants was still spreading in the Oberne Creek community at the weekend, Ms Starr said the response from those she had spoken to had also been great relief.

"I've had a few emails from people as they are hearing about it," she said.

"People are feeling relieved.

"No one could move forward until a decision was made.

"I think now people can start making some plans."