A severe weather warning has been issued for the already flood-ravaged northern region of NSW where communities continue their massive clean-up.

Heavy rainfall with a risk of possible life-threatening flash flooding is predicted for the Northern Rivers, North Coast and Northern Tablelands on Monday and through to Tuesday, Bureau of Meteorology senior meteorologist Jonathan How told AAP.

Downpours of between 30 and 60mm were recorded on the coastal strip from Tweed Heads and Byron Bay overnight, Mr How said.

Those falls were on top of rainfall totals between 100 and 200mm recorded over Saturday and Sunday.

He said heavy falls will push down from the Queensland side of the border later this morning and into the afternoon, and then "really peak this afternoon and into the evening".

Those falls will continue into Tuesday and only begin to ease on Tuesday afternoon and into the evening.

The forecast zone includes Tweed Heads, Murwillumbah, Byron Bay, Lismore, Yamba, Grafton, Coffs Harbour and Dorrigo, where six-hourly rainfall totals of between 80 and 140mm are predicted.

"All of those locations could see those really heavy falls, but it does come with a caveat that those flows will be with the thunderstorms, Mr How said.

He stressed while the conditions were similar to those in the recent Lismore flood, the outcome was not predicted to be as widespread and severe.

Lismore's mayor Steve Krieg said the next two days would be critical for how Lismore is going to fare over the next week.

"It won't bloody stop raining up here," told the Nine Network on Monday.

"This is a major development, this weather front. If our river rises, we're going to start the evacuations today just to be cautious."

Rough seas are expected along the Byron Coast on Tuesday, and dangerous swells will also hit shores on the Macquarie and Hunter Coast on Wednesday.

A flood watch is in place for the Northern Rivers, Mid North Coast, Hunter, Hawkesbury Nepean and North Western New South Wales Rivers.

Moderate to major floods are a possible on the Richmond, Wilsons, Orara and Bellinger Rivers from Tuesday as heavy falls hit already-saturated catchments.

Minor to moderate flooding is also a risk for parts of the Northern Rivers, the North Coast, Hunter, Hawkesbury-Nepean and North-Western NSW rivers.

"It won't bloody stop raining up here," Lismore Mayor Steve Krieg told the Nine Network Monday.

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A severe weather warning for the already flood-ravaged northern region of NSW has been issued by forecasters, as communities continue in their massive clean-up.

Heavy rainfall with a risk of possible life-threatening flash flooding is predicted for the Northern Rivers, the North Coast and the Northern Tablelands on Monday and through to Tuesday, Bureau of Meteorology Senior Meterologist Jonathan How told AAP.

Heavier falls have already been recorded on the coastal strip from Tweed Heads and Byron Bay overnight of between 30 to 60mm, How said.

Those falls were on top of rainfall totals of between 100 to 200mm recorded over Saturday and Sunday.

"We are expecting the rain to really ramp up today.

He said "heavy falls will push down from the Queensland side of the border later this morning and into the afternoon, and then really peak this afternoon and into the evening."

Those falls will continue into Tuesday and will only begin to ease on Tuesday afternoon and into the evening.

The forecast zone includes Tweed Heads, Murwillumbah, Byron Bay, Lismore, Yamba, Grafton, Coffs Harbour and Dorrigo, where six-hourly rainfall totals of between 80 to 140mm are predicted.

"All of those locations could see those really heavy falls, but it does come with a caveat that those flows will be with the thunderstorms.

"With thunderstorms, we tend to see sometimes lines of thunderstorms basically move over the same town over hours and hours," Mr How said.

"It's a very similar set-up to what we saw earlier this month (with Lismore) but it will depend on where those lines of thunderstorms do form."

"That's where we'll see the 100 plus millimetres.

"Pretty much anywhere along the coast towards the ranges is potentially under threat of life-threatening heavy rainfall from today."

He stressed while the conditions were similar to those in the recent Lismore flood, the outcome was not predicted to be as widespread and severe.

"It's not expected to be as bad as what we saw earlier this month," he said.

"We are expecting fairly widespread minor to moderate flooding, but not at this stage expecting the significant, major widespread flooding.

Mr How said many communities remained sensitive after widespread damage, and the risk of dangerous conditions was still active.

"It won't bloody stop raining up here," Lismore Mayor Steve Krieg told the Nine Network on Monday.

"The forecast doesn't look good ... the next two days is critical for how Lismore is going to fare over the next week.

"This is a major development, this weather front. If our river rises, we're going to start the evacuations today just to be cautious.

"But there's a lot of infrastructure that's been temporarily put in place that we're going to have to pack up and move out of the CBD area."

The public school in the riverside town of Woodburn is expected to reopen on Monday, and a number of businesses in the Northern Rivers were planning to recommence trading.

"All these people are living on the edge at the moment," the mayor said.

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Pressure at the fuel pump could be eased slightly if the federal government follows through on an expected temporary slash to the fuel excise.

But Finance Minister Simon Birmingham remains tight-lipped about exactly how much the excise will be cut as part of the upcoming budget.

"We do recognise that Australians have cost of living pressures in their household budgets and so what they will see in this budget is something carefully framed to deal with those short term issues," he told ABC radio on Monday.

The Australian newspaper reports there is expected to be a cut in the excise of between 10 to 20 cents per litre for six months, to help ease the cost of living.

Tuesday night's budget will also include more help for first home buyers.

The Home Guarantee Scheme will double to 50,000 places to support more first home buyers with a five per cent deposit.

There will be an additional 35,000 places available for first home buyers, 5000 places for single parents and 10,000 places for people who buy or build a new home in a regional area.

Housing Minister Michael Sukkar says to date there have been no defaults on loans since the program began three years ago.

"It's (the government's) program, it's our scheme and we're expanding it because it's been so successful and we're so proud of it," he told Sky News on Monday.

Yet opposition spokesman Jim Chalmers says the government's housing announcement copies Labor's election commitment to help first home buyers in regional areas.

"They've copied our policy today for regional first time buyers - that's a good thing as far as we're concerned - it won't solve the whole problem but we'll have more to say about that," he told Nine Network on Monday.

A further $17.9 billion will go towards new and existing infrastructure projects under the government's 10-year rolling investment pipeline.

The overall program will amount to a record $120 billion.

Prime Minister Scott Morrison said the government's investment was keeping Australians moving and supported thousands of local jobs across the country.

"Continuing to provide record future funding for road and rail projects is a key part of our economic plan for the long term to keep our economy strong," Mr Morrison said.

"By investing in these projects we are delivering the infrastructure that the Australian economy needs to grow, to get Australians home sooner and safer, and generate thousands of jobs and new opportunities for small businesses right across the country."

The latest announcement ahead of Tuesday's budget comes on top of a host of commitments in recent weeks worth tens of billions of dollars.

BREAKDOWN BY JURISDICTION OF NEW INFRASTRUCTURE FUNDING:

(Jurisdiction - spending - job creation, both direct and indirect)

NSW - $3.3 billion - more than 10,000

Vic - $3.3 billion - more than 6500

Qld - $3.9 billion - more than 11,000

WA - $2.1 billion - more than 5500

SA - $2.8 billion - more than 2000

Tas - $639 million - more than 2500

NT - $361 million - more than 1000

ACT - $51 million - around 325

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