CANBERRA - Australian Prime Minister Anthony Albanese has announced emergency disaster payments for people affected by a major bushfire in the country's southeast.

Albanese on Sunday assessed the damage caused by the ongoing bushfire in the Grampians National Park, approximately 230 km west of Melbourne, along with the Premier of the state of Victoria, Jacinta Allan.

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Albanese told reporters that federal and state government disaster recovery payments will be available from Monday for workers and sole traders directly affected by the fire, providing up to 13 weeks worth of income support.

"This has been a devastating fire event," he said. "We live in a country that's got harsh conditions, the truth is they are becoming more frequent and more intense."

The bushfire was ignited by a lightning strike on Dec 6 and has burnt through over 70,000 hectares of farmland, national park and private property.

No injuries have been reported but at least three homes have been destroyed and a significant number of livestock lost.

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Several towns and communities in and around the park were ordered to evacuate in the lead-up to Christmas Day but most residents had been allowed to return home as of Sunday as conditions eased.

However, authorities have warned that they expect the fire to continue burning for several weeks.

Albanese on Sunday urged people to continue abiding by emergency warnings and evacuation orders, describing a failure to take them seriously as disrespectful to firefighting crews.