The threat from a large bushfire burning in NSW’s south has receded after extensive rain and cooler temperatures in the area aided firefighting efforts.

The NSW Rural Fire Service reported 32 bushfires across the state on Friday morning, down from 36 on Thursday night, with the Coolagolite blaze in the Bega Valley now ranked at advice level.

The blaze, which burnt at an emergency level earlier this week, was under control, having torn through more almost 7000 hectares of bushland, the RFS said on its website.

A moderate fire danger existed for the Bega region on Friday, the Bureau of Meteorology said, forecasting a maximum temperature of 19C and partly cloudy conditions.

RFS late on Thursday said reduced fire activity in the area enabled firefighters to strengthen containment lines, but warned of a higher risk of falling trees and pockets of active fire.

The blaze earlier this week destroyed at least two homes and impacted several others before a cool change gave firefighters the upper hand.

Nineteen sheds were either destroyed or damaged, assessment crews said.

Emergency Services Minister Jihad Dib has released disaster assistance funds to help affected residents with the “clean-up and recovery” from the fire.

Premier Chris Minns warned of a horror summer ahead, given the south coast blaze began in an area hit by the devastating 2019/20 Black Summer fires.

“It means there’s a significant load that’s regrown enough to have a bushfire go through it and that’s a concern for the Rural Fire Service and for those communities,” Mr Minns said.

– AAP