More than 70 bush and grass fires are still burning in NSW on Sunday morning, including 20 uncontained.
An out-of-control bushfire destroyed at least 12 homes in Koolewong on Saturday, not far from built-up areas on the Central Coast.
Another four homes were lost at Bulahdelah in the Mid North Coast, NSW Premier Chris Minns said.
The Koolewong fire could have claimed more homes if not for the work of dedicated firefighters, he said on Sunday.
"Just to put it in perspective, the fire embers jumped a stretch of water over a kilometre long," he told ABC TV.
"This was a fast-moving very dangerous fire in a residential area."
Authorities have warned a cool change is expected to bring strong winds and possible lightning strikes on Sunday morning, creating unfavourable conditions.
"We're not out of the woods yet," RFS Deputy Commissioner Ben Millington said.
"We've still got that southerly change come through and that's where our focus continues to be."
Senior meteorologist Dean Narramore said the strong winds were expected to last for a few hours but cooler conditions and more air moisture would follow.
Damage assessment teams were on the ground on Sunday, along with investigators from NSW Police and the RFS to determine the cause of the blaze.
Federal and state disaster assistance funding has been activated for Central Coast, Mid Coast, Upper Hunter, Muswellbrook, Warrumbungle and Dubbo.
The declarations activate support measures for residents, businesses, primary producers and councils.
"Whilst we continue to contain the fires that have impacted communities across NSW, our priority is also to support those people whose homes and livelihoods have been impacted," NSW Recovery Minister Janelle Saffin said.
Koolewong will remain a priority for fire crews despite warnings being downgraded to watch and act, although the fire has moved towards the Woy Woy Bay area.
An uncontained bushfire in Redhead, south of Newcastle, prompted an emergency warning early on Sunday
Residents were told it was too late to leave and urged to seek shelter, before the warning was downgraded to watch and act.
Temperatures are expected to ease from Sunday for most of NSW and southern Australia, though the heat will build across northern Australia and WA and returning to much of the country early in the week.
Elsewhere, more than a dozen homes and shacks, outbuildings and cars were damaged and two firefighters were injured fighting an out-of-control fire at Dolphin Sands on Tasmania's east coast on Friday.
The fire has since been contained, although it's not safe for residents to return as access to the area remains dangerous.Â
Victorians will face milder temperatures on Sunday after a cold front and thunderstorms followed hot, dry and windy weather on Friday.
14°C