Western Australian Premier Colin Barnett on Wednesday declared a fire that destroyed more than 30 homes at Toodyay, 80 km north-east of Perth, a natural disaster.
Firefighters have worked through the night to control the raging blaze.
Three firefighters and a woman from the town suffered minor injuries in the fire, which has burnt 3,000 hectares of bushland.
Barnett traveled to Toodyay to see the damage firsthand and thanked emergency service workers for their efforts.
"There is no doubt they saved lives last night," he said.
"If you saw the destruction, houses totally destroyed and people were got to safety by the emergency services."
Barnett said state government agencies will help people who have lost their homes, and families in immediate need will receive 3,000 Australian dollars (2,672 U.S. dollars).