Disaster assistance has been made available to Central Highlands and Southern Midlands councils to help pay for the costs of fighting the Pelham bushfire, the clean-up and road repairs.
The announcement comes on top of financial support already announced for communities affected by fires at Fingal in the state's North-East.
In a joint statement, Premier Will Hodgman and federal Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management Minister David Littleproud, said the assistance was being provided through the jointly funded Commonwealth-State Disaster Recovery Funding Arrangements.
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"The federal government will pick up part of the bill for road and infrastructure repairs, so these communities can get back to what they do best sooner," Minister Littleproud said.
"It also means we'll help cover the cost of fighting the fires and the clean up after them.
"We will stand shoulder-to-shoulder with these communities and make more assistance available if it is needed."
Mr Hodgman said a large number of firefighting personnel, appliances and aircraft have been used to combat the Pelham fire, which is still burning.
"Our first responders are doing a remarkable job of protecting communities and I commend them for their efforts," he said.
"The Pelham bushfire continues to burn and has so far destroyed 2200 hectares of land in the Central Highlands and Southern Midlands local government areas."
Information on disaster assistance can be found on the Australian Government's Disaster Assist website.