Outrage among locals as northern NSW communities miss out on additional flood disaster payments

The Federal Government is facing a backlash after some communities devastated by disaster flooding in northern New South Wales were denied additional support payments.

The Local Government Areas of Ballina Shire, Byron Shire and Tweed Shire have missed out on the government's additional payments, sparking uproar in the community.

Mullumbimby builder Aaron Diehm said the denial of the payment scheme was a "massive blow" to locals, many of whom were facing homelessness after floodwaters destroyed their homes.

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"A lot of people need it," he told Today.

"Houses have water through it. They have nowhere to live."

Mr Diehm said a number of roads and areas were still cut off due to rising floodwaters.

"We need more payments and more help here."

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Residents living in the "catastrophe zones" of Lismore, Richmond Valley or the Clarence Valley will receive an extra two weekly payments of $1000 per adult and $400 per child from March 15.

Richmond MP Justine Elliot blasted the government's relief effort as an "insult" yesterday, as flood-affected residents in Ballina were unable to access the level of support being offered to Lismore, which is just 30 minutes away.

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"We've got people here now who have no homes, they have no food and no money," she said in a video posted on Twitter.

"We desperately need assistance right here. I'm so furious."

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Treasurer Josh Frydenberg defended the government on Today, explaining they had received expert advice on the areas that required additional funding.

"We know that in the area of Lismore it's been a catastrophic event, and the damage that we've seen there is greater than what we've seen in other parts of the country due to floods," Mr Frydenberg said.

"So what we did is we sat down with the experts. They gave us the facts on the ground."

Mr Frydenberg said the government would continue to take advice on the issue.

"This is not the first nor the last payment that we will be making to support people in these flood-affected areas," he said.