NSW flooding will cost billions

Flooding in NSW looks set to cost the state and federal governments billions of dollars in relief and repair assistance.

Federal Attorney-General Robert McClelland gave his estimates, based on last year's costs, to reporters in Sydney on Saturday.

"We don't know what the bill will be at this stage, but floods tend to cause even more loss than bushfires, so the bill could be quite substantial.

"Just by way of guidance, the last financial year, the commonwealth's contribution for natural disaster relief and recovery arrangements was touching $1 billion, and that is matched around the country by state contributions.

"This is a substantial cost, but obviously one that has to be borne to support local communities," Mr McClelland said.

He said people were being evacuated from Eugowra, North Wagga and Gumly Gumly, as natural disaster zones braced for more rain.

Authorities were continuing to search for an elderly man washed away by floodwaters in Bajool after his car was swept off the road yesterday.

Elsewhere, residents of an NSW caravan park were being evacuated today after intense localised rainfall in the Dubbo area.

He said there was also likely to be a severe cyclone season in north Queensland and flooding in Queensland.

"It's going to be a challenging summer period. While it's the festive season, it's also known as the natural disaster season in Australia," he said.

Disaster zones have been declared around Mudgee, Weddin, Wellington, Warrumbungle, Cootamundra, Coonamble, Harden and Young shires, all of which have sustained significant damage from recent heavy rain.

$500 million has been wiped off the state's predicted $3.2 billion bumper crop harvest, authorities say.

NSW Emergency Services Minister Steve Whan said that the disaster zones could be extended if there are more heavy downpours.

"Mid-Western Regional Council, based in Mudgee, has estimated that it has sustained more than $12 million in damage to roads, causeways, culverts, drains, sports fields, parks, water and sewerage infrastructure and public buildings," Mr Whan said.

"The council's clean-up bill to remove debris is estimated at another $1 million.

"Weddin and Young shires also have suffered damage to infrastructure, particularly roads, after sustained recent rains.

"Likewise, Wellington and Warrumbungle shires experienced damage to roads, bridges and culverts," he said.

The disaster zones trigger eligibility for government payouts.

Farmers had been expecting a bumper crop following good conditions in the spring.

But the values have now dropped significantly as the rain continued to deluge regional centres into summer.

"This is simply devastating to farmers who after 10 years of drought will now see one sixth of their crop lost to rain," Mr Whan added.

Householders have also been affected by the flooding.

On Friday night, residents of Wagga Wagga were briefed on evacuation procedures as it joined a growing list of NSW population centres on alert amid rising flood levels.

The State Emergency Service (SES) held the public meeting to address residents of North Wagga and Gumly Gumly in southern NSW.

"We want to talk to them about the possibility of evacuation - about what they can do to prepare themselves and their property, what options they have if they have to leave and can't go to family or friends," an SES spokesman told AAP.

The meeting came as strong overflows from the Burrinjuck Dam on the Murrumbidgee River continue to threaten the area.

"We worked out that 70,000 Olympic swimming pools a day (are being released from the dam)," the spokesman said.

"Wagga is a concern for us on Sunday morning because there is still uncertainty over how much higher the river will rise."

Wagga Wagga's council chambers were closed on Friday and the shopping centre car park was flooded.

Areas along the banks of the Murrumbidgee have already faced evacuation, with two caravan parks in the nearby town of Gundagai cleared as flood waters deluged the area.

Earlier on Friday, two properties in Jugiong were also evacuated.

In central western NSW, conditions have eased at Parkes, where earlier on Friday roads became impassable because of flash flooding, affecting the town's 10,000 residents.

The automatic weather station at Parkes airport recorded 106mm of rain in the 24 hours to 9am (AEDT) on Friday.

Forbes in central NSW also faced flash flooding with more than 70mm of rain during the past 24 hours.

In northern NSW, Coonamble continues to be isolated by floods from the Castlereagh River.

The village of Pilliga with a population of 140 is also cut off after heavy rainfall overnight along with the nearby town of Wee Waa.

- AAP