NSW has been the most badly affected by fires in Australia, with 20 people killed and close to 2,000 homes destroyed this season, representing the vast majority of nationwide losses.
State Premier Gladys Berejiklian said that the funds would prioritise repairing and rebuilding key infrastructure such as roads, rail-lines, bridges, schools, health facilities and communications.
"This money will provide an immediate source of funding to ensure key infrastructure is restored so that communities can get back on their feet as soon as possible," she said.
Earlier this week the federal government allocated 2 billion Australian dollars (1.37 billion U.S. dollars) for fire relief across the country.
Berejiklian said that NSW's portion of that money would go directly to individuals, families businesses and local councils affected by the fires.
"The bushfire season is far from over but we know how important it is for communities to start the recovery process where possible," she said.
NSW officials had previously committed an additional 231 million Australian dollars (158 million U.S. dollars) in direct disaster assistance, including extra funding for firefighters, support for agriculture and small businesses, and mental health services.
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