Australia on Monday boosted emergency grants and loans for small businesses hit by bush fires that have ravaged the country during the peak tourist season, as firefighters used cooler weather to prepare for a return of hazardous fire conditions.

The fires have killed 29 people and millions of animals, destroyed more than 2,500 homes and razed an area roughly a third the size of Germany since September.

Several days of rain and a dip in temperature have reduced the number of active fires across the country's densely populated southeast and given authorities an opportunity to focus on the recovery effort.