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Scott Morrison believes Australians understand why petrol prices are going up but won't say whether there will be help in the budget at the end of the month through a cut in fuel excise.

Some parts of the country are paying well over $2 per litre as a result of global oil prices spiking due to Russia's invasion of Ukraine.

"What are driving fuel prices are things well beyond the shores of Australia," the prime minister told the Nine Network on Sunday.

"I think Australians understand those issues."

Mr Morrison says Australia is working with other countries around the world in terms of releasing fuel reserves to try to alleviate the pressure on fuel prices.

There have been calls for a cut in fuel excise, which amounts to 44 cents for a litre of petrol.

Like the prime minister, Assistant Treasurer Michael Sukkar declined to foreshadow anything that may or may not be in the budget on March 29.

But he concedes the cost of living is a significant issue.

"There is no doubt the budget will seek to build the recovery, ensure that we keep our foot on the economic accelerator, but will also take into account the fact households are feeling the pressures of cost of living," Mr Sukkar told Sky News' Sunday Agenda program.

Households are also being warned of an official interest rate rise later this year, which would be the first in almost 12 years.

Mr Sukkar was quick to point out that it is the Reserve Bank of Australia that makes these decisions, not the government.

"We will be conveying to the Australian people through the budget and into the election that our economic recovery is not assured," he said.

"We're in good shape but we still need to make wise decisions in a period of time where there is great instability in the world."

Cost of living pressures look set to be a key focus when the country eventually goes to the polls in May.

Labor frontbencher Tanya Plibersek says everything is going up apart from people's wages.

"Everywhere you go, everyone I'm talking to will tell you they haven't had a pay rise in years - they have seen the purchasing power of their pay packet go backwards," she told Sky News.

"This is something Scott Morrison has absolutely failed on."

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A television flood appeal has raised more than $25 million for victims in NSW and Queensland, as the prime minister defends not extending the national emergency to the sunshine state's southeast.

The Red Cross Flood Appeal, broadcast on Australia's three main commercial TV stations on Saturday night, surpassed its $20 million target after major donations from businesses, philanthropists and state governments.

Western Australia and Victoria donated $2 million, while South Australia chipped in with $1 million.

The clean-up continues in NSW and Queensland following the devastating floods, as more than 100 mobile home units head to ravaged communities in the former.

Commonwealth Bank of Australia is also calling for grant applications of up to $10,000 from its $2 million flood relief fund to support organisations involved in recovery efforts.

"Through these grants we hope to assist hundreds of community organisations in their clean-up, rebuild and recovery efforts," CEO Matt Comyn said.

Prime Minister Scott Morrison remains under attack for his handing of the crisis but insists the defence forces and agencies involved moved as quickly as they could.

"In a disaster like I have seen up in Lismore, no response is ever going to be able to meet the overwhelming need," Mr Morrison told the Nine Network on Sunday.

"The first response always comes from the community ... then it comes from the SES and then the ADF comes to support that.

"The SES or the defence forces, they don't replace that community response, they add to it, they support it and they bring in the heavy equipment."

News Corp newspapers report that Defence officials offered NSW their help ahead of the east coast rain bomb on two separate occasions, only to be told they were not needed.

A national emergency was declared in NSW late Friday, triggering additional resources for flooded areas.

The declaration will last three months and allow the federal government to access stockpiled resources and remove red tape around welfare support.

Queensland Premier Annastacia Palaszczuk knocked back a similar offer for her state, saying help was needed a week earlier.

"He could declare a national emergency, he could have done that two weeks ago in Queensland," Labor frontbencher Tanya Plibersek told Sky News' Sunday Agenda program.

"It just blows me away that once again we're in a position where Scott Morrison is refusing to take responsibility, refusing to be a national leader."

Assistance has also been extended to a further 12 local government areas in NSW.

They include Cessnock, Cumberland, Dungog Shire, Goulburn Mulwaree, Lithgow, Maitland, the mid-western region in the Central Tablelands, Muswellbrook Shire, Queanbeyan-Palerang, Singleton Shire, Snowy-Monaro, and Upper Hunter Shire.

The support will be provided through the jointly funded Commonwealth-State Disaster Recovery Funding Arrangements, with some regions remaining at emergency level despite waters receding elsewhere.

NSW Emergency Services and Flood Recovery Minister Steph Cooke says the support will extend to thousands of households, small businesses, primary producers, non-profits and councils.

Telstra says it is continuing to make progress reconnecting communities in both Queensland and NSW, with approximately 95 of its mobile base stations back online and 75 per cent of landline services restored.

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The Morrison government is providing about $36 million to ensure flood-affected communities on Australia's east coast can access vital health services and additional mental health support.

Health Minister Greg Hunt says the impact of the devastating floods will be felt for years to come.

"Importantly, this package of support will be provided over the next two years because we know support won't just be needed in the next few months," Mr Hunt said.

"People living in flood-affected regions of Queensland and NSW will need substantial ongoing support."

The funding package provides $31.2 million over two years for mental health support, including $16.6 million to meet immediate psychological needs and $9 million for the mental health of children and young people.

There is also $4.7 million to ensure continuity of primary health care.

Prime Minister Scott Morrison remains under attack for his initial handing of the crisis, but he insists the defence forces and agencies involved moved as quickly as they could.

"In a disaster like I have seen up in Lismore, no response is ever going to be able to meet the overwhelming need," Mr Morrison told the Nine Network on Sunday.

"The first response always comes from the community ... then it comes from the SES and then the ADF comes to support that.

"The SES or the defence forces, they don't replace that community response, they add to it, they support it and they bring in the heavy equipment."

News Corp newspapers report that Defence officials offered NSW their help ahead of the east coast rain bomb on two separate occasions, only to be told they were not needed.

A national emergency was declared in NSW late on Friday, triggering additional resources for flooded areas.

Queensland Premier Annastacia Palaszczuk knocked back a similar offer for her state, saying help was needed a week earlier.

Labor's defence spokesman Brendan O'Connor said the prime minister should have responded quicker.

"Everyone who was watching their television screens during the course of these terrible events knew that this was unprecedented and needed immediate action," Mr O'Connor told ABC's Insiders program.

"I have to say, the ADF, those that are involved are doing remarkable things, along with the volunteers and the emergency workers. But more should have been done earlier and more ADF personnel deployed quicker to help the communities of northern NSW, south east Queensland."

A television flood appeal has raised more than $25 million for victims in NSW and Queensland, as the prime minister defends not extending the national emergency to the Sunshine State's southeast.

The Red Cross Flood Appeal, broadcast on Australia's three main commercial TV stations on Saturday night, surpassed its $20 million target after major donations from businesses, philanthropists and state governments.

Western Australia and Victoria donated $2 million, while South Australia chipped in with $1 million.

The clean-up continues in NSW and Queensland following the devastating floods, as more than 100 mobile home units head to ravaged communities in the former.

Commonwealth Bank of Australia is also calling for grant applications of up to $10,000 from its $2 million flood relief fund to support organisations involved in recovery efforts.

"Through these grants we hope to assist hundreds of community organisations in their clean-up, rebuild and recovery efforts," CEO Matt Comyn said.

© AAP 2022