Prime Minister Scott Morrison on Sunday announced the immediate commencement of the agency which will work in conjunction with state authorities and defence efforts.
“It will be modelling its operations closely on the successful response provided to the North Queensland floods,” Mr Morrison told reporters in Canberra.
“That agency will be drawing on a series of support measures.”
That includes mental health, the prime minister noted.
“It’s important we are addressing the mental health needs as well as the many other health needs that will need to be addressed.
“This organisation will be stood up for at least two years.”
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Canberra will not seek matching funding from states and territories.
“I have no doubt they will have a long list of recovery tasks that they will be performing … rebuilding bridges, roads and other critical infrastructure and we will work hand in glove.”
The government has already announced the rollout of up to 3000 Defence Force reservists to help handle the fallout from fires.
Weather conditions eased on Sunday but authorities warned the bushfire threat remained active, particularly in the nation’s southeast.
Six people remain missing in Victoria, with grave fears for their wellbeing.
In NSW thousands of properties are without power and the government expects to confirm hundreds more property losses from the past day.