The six-month extension will apply to people in the Shoalhaven, Eurobodalla and other bushfire affected local government areas whose main property was significantly damaged or destroyed and had not yet been rebuilt or changed ownership.

Minister for Local Government Shelley Hancock said the state government was committed to helping local communities recover from the catastrophe.

"That's why Service NSW has already paid out more than $2.4 million in council rate relief for property owners in 34 local government areas whose homes, farms and businesses were lost in the bushfires," she said.

"Importantly this funding is paid directly to the local council, meaning ratepayers don't have to pay anything, and it does not cost local councils anything to support these property owners."

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Council rate relief already paid out covers rates notices for Quarter 3 (January - March) and Quarter 4 (April - June) for 2019-20. The six-month extension will cover rates notices for Quarter 1 (July - September) and Quarter 2 (October - December) of 2020-21.

The relief package covers the land rates component and fixed service charges, such as waste, sewerage and water, where the amount is included on the council rates notice. Water charges are paid where it is a council-owned water utility. Any eligible ratepayer who has already paid their rates will receive an automatic credit against their account or can speak with their council regarding a refund.