Prime Minister John Howard and Premier Paul Lennon today announced more than $800,000 in additional funding to help families, business and primary producers recover from the devastating East Coast bushfires.
The agreement would see a $700,000 Community Recovery Fund established with equal contributions from the State and Commonwealth.
Both Governments have also agreed to contribute $50,000 to the bushfire relief appeal set up by the Red Cross.
The Prime Minister and Premier Lennon have agreed to provide this urgent assistance to help those Tasmanians who have been so badly affected by the bushfires on the East Coast.
"We both understand that these people need urgent financial assistance and not just talk to help them through this very difficult period.
"I would like to thank the Prime Minister for his willingness to assist at the very first possible opportunity.
"This is a good example of the State and Commonwealth Governments working together to put the interests of the community first," Mr Lennon said
The Community Recovery Fund will be used to address the needs of the community as they arise and to assist the region to recover fully from the fires.
The funding will support grants of up to $15,000 for charities, small business and primary producers to assist with costs that are not covered by insurance arrangements.
Arrangements for the payment of funding under the grants are expected to be in place by Monday 18 December 2006.
The Prime Minister and Premier are dedicated to ensuring that all necessary assistance was available to families who had lost their homes in time for Christmas.
"It is important at times of crisis that Commonwealth and State Governments are able to work together to support Australian families. This is an instance of cooperative federalism at work," the Prime Minister said.
State and Commonwealth officers would also be working with each individual family to identify and, where possible, address any other needs.
This assistance is in addition to support already made available to families who had lost their homes.
The Prime Minister and Premier acknowledge that the recovery of the families that have lost their homes and the local communities would take some time.
They will continue working with local communities to identify their needs and provide assistance where possible.