Funding set aside to support victims of previous disasters is expected to flow to those affected by recent record-breaking floods
Recovery operations are underway but there are warnings it could take more than a year to resolve some individual insurance claims.
NSW Premier Chris Minns has returned to Taree to meet with volunteers, farmers and businesses affected by deadly floods around the NSW mid-north coast.
The Manning River exceeded a 1929 record during recent flooding in the town, peaking at almost 6.5 metres and bringing widespread devastation.
Applications will open on Friday for federal-state payments to help cover costs for things like food, clothing, medication and emergency accommodation.
The one-off payment is worth up to $180 for individuals and $900 for families in severely impacted suburbs.
More support is being finalised, pending the completion of damage assessments and further federal funding.
The premier said it would also involve money allocated but not spent on previous recovery efforts.
"The money's been set aside, it's never been spent, the reason is the criteria for people accessing it was too strict," Mr Minns told reporters.
MidCoast mayor Claire Pontin said state and commonwealth supports will help restore damaged infrastructure.
"Both the state and federal governments have recognised this as a disaster," she told AAP.
"All that public infrastructure, once we've got a handle on it, we can actually claim a very large part of that money back."
About 3500 people remain isolated in six communities across the mid-north coast and Hunter regions, while about 700 homes and 400 other buildings have been deemed uninhabitable
Another 3000 buildings have also received some form of damage, according to a tally of 10,200 damage assessments.
The floods have also claimed five lives.
Waters have mostly receded but damage to roads and bridges still prevents access to some parts, with resupply operations continuing
The floods have also been declared a "catastrophe" by the Insurance Council of Australia, escalating the industry response and prioritising claims to provide urgent assistance to the worst-impacted customers.
More than 6000 claims have been filed, about a quarter of them coming from the MidCoast council area.
While insurers usually resolved 90 to 95 per cent of claims within a year, federal Assistant Treasurer Daniel Mulino said more work was needed to ensure people behind the remaining claims were not forgotten.
"In a number of instances, we've seen hundreds, and sometimes thousands of people, with still unresolved claims a year, or even two years after the disaster," he told ABC Radio National on Thursday.
All insurers needed to follow the lead of those in the industry appointing customer advocates internally, he said.
Former NSW Police deputy commissioner Dave Owens meanwhile said his new role overseeing agencies and community organisations' responses was vital.
"It's not a quick process but it's vital that we have a co-ordinated response," the newly minted flood recovery co-ordinator told reporters in Taree.
Mr Owens would be a strong advocate for the community, Recovery Minister Janelle Saffin said.
The role will build on what emergency services and volunteers in the community have already been doing in the recovery.
