Victorian Premier Daniel Andrews has warned of “significant challenges” as the state braces for more rain and extreme weather in coming days.

Thousands of Victorians have already been forced to flee their homes and clean-up efforts are underway.

However, Mr Andrews said the crisis was not over yet.

“There is more rain on its way by the end of the week, particularly for northern Victoria,” he said on Tuesday.

“That’ll see renewed water rising and flooding, potentially not exceeding the peaks we saw over the weekend – but still very significant challenges.”

Mr Andrews said more than 700 people had already been rescued or evacuated in Victoria, and more were expected.

“Please, if you are told to leave, give proper consideration to that, and if you need support to get out, will provide you with that support,” he said.

“It’s better to do that before your home is flooded, rather than afterwards.”

Mr Andrews visited Shepparton on Tuesday morning, where floodwaters are finally receding.

However, several towns in Victoria’s north are still building sandbag walls as the Murray River rises.

Peaks are expected to arrive from Wednesday, and there are evacuation warnings for people in Echuca and other towns along the river.

Emergency services are concerned river levels could exceed the 94.77 metres recorded in Echuca during the 1993 floods.

More than 1000 Echuca properties were already inundated with floodwaters on Sunday after the Campaspe River broke its banks.

Across the border in NSW, meanwhile, there are also concerns.

NSW Premier Dominic Perrottet said more than 300 people had been evacuated from the Moama area – on the Murray north of Echuca – in recent days. About 3000 more, from a total population of 5000, were on standby for a likely evacuation within 48 hours.

”We currently have 69 warnings in place across NSW,” Mr Perrottet said.

“Of major concern is down south, particularly in Moama.”

There are also concerns the rural Victorian town of Kerang, about 95 kilometres north-west of Echuca, will become isolated due to floodwaters.

Major flooding at Kerang along the Loddon River is expected overnight on Tuesday and into Wednesday. The water is forecast to peak at about the January 2011 level soon after.

A sandbag levee is expected to help keep the majority of the town dry, but it could be cut off for up to seven days.

A warning has also been issued for the Wimmera River, with residents of Horsham – in Victoria’s west – told major flooding is possible from Wednesday morning.

On Tuesday, a new evacuation warning was issued for the small town of Barmah near Shepparton. It is expected to be severely impacted by Wednesday afternoon.

More rain is also expected later in the week. Senior meteorologist Michael Efron said “waters are receding very slowly”, but there would be a change later in the week.

“As we head into Wednesday we will start to see further shower and thunderstorm activity developing over the northern parts of the Mallee,” he said.

The rest of Victoria is expected to remain dry until the rain spreads of Thursday and Friday.

With the crisis growing, the federal government on Tuesday expanded the one-off, non-means tested disaster recovery payment of $1000 per adult and $400 per child to the Benalla, Boroondara, Central Goldfields, Greater Bendigo, Loddon, Moonee Valley, Mount Alexander, Murrindindi and Yarra local governments.

The assistance was already open to those in the Campaspe, Greater Shepparton, Maribyrnong, Mitchell and Strathbogie councils.

The City of Melbourne is not included, despite the suburb of Kensington being inundated by the Maribyrnong River last Friday.

The water is expected to stick around the residential areas of the city for the next 48 hours. Authorities have pleaded for locals to stay away until the evacuation order expires.

Other Victorian towns are moving to the clean-up phase, with the state government on Monday announcing a $351 million flood recovery package.

The disaster funding includes $165 million in emergency road fixes such as filling potholes and repairing surfaces to get people and freight moving.

Close to 13,000 people have applied for state relief payments, with almost 4000 people already receiving support.

The state government also confirmed fees would be waived for those in 46 local government areas trying to remove flood waste until December 31.

It is projected 300,000 tonnes of waste will be sent to landfill as a result of the floods.

– AAP