In addition to the $1 billion,the government will also provide emergency housing help to people who lost their homes in the fires. This will include temporary accommodation,private rental bonds and advance rent payments.
Families and communities minister Gareth Ward said the Bushfire Housing Assistance Service would help those temporarily or permanently displaced as a result of the fires.
"This service will make it easier for residents impacted by these tragic bushfires to access support and secure a home or safe place to stay as soon as possible,"Mr Ward said.
"The NSW government has also established a dedicated bushfire housing assistance response team to proactively support communities that have been devastated by fires in the Illawarra,Shoalhaven and southern NSW region."
The government's latest funding announcement tops-up the $231 million already announced this bushfire season,which includes $166 million more for the Rural Fire Service budget,$25 million to help clean-up insured and uninsured homes and grants for primary producers and small businesses.
On Thursday morning,the RFS confirmed almost 1000 homes across the state had been destroyed in the nine days of the year so far.
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An impact assessment published on Twitter said that of the 1870 homes destroyed across the state this horror fire season,954 had been lost this year.
A further 196 facilities have been destroyed and 3774 outbuildings.
Twenty people have died so far this fire season in NSW,including RFS volunteers Andrew O'Dwyer,Geoffrey Keaton and Samuel McPaul.