Rain has returned to the NSW coast and residents in several areas are being warned to prepare for heavy falls and flash flooding, as a stoush continues over flood recovery funding.
NSW has been hit by repeated flooding in the past few months, with the Northern Rivers devastated by consecutive deluges since February.
While the recovery and clean-up efforts are ongoing, so is the rain.
Bureau of Meteorology meteorologist Sarah Scully says the central and southern NSW coasts can expect heavy rain for the rest of the week.
"Heavy and persistent showers over the coming days will increase the chance of flash flooding and landslips over already saturated catchments," Ms Scully said on Wednesday.
Severe thunderstorms also pose a threat, including in northeast NSW.
"They may produce localised heavy falls (but) it is not expected to produce that riverine flooding. Instead, it'll be more localised flash flooding," Ms Scully said.
A severe weather warning extends from Gosford to south of Bega and inland to the central and southern tablelands.
Localised six-hourly falls up to 140mm are possible.
In the five hours to 2pm on Wednesday, northern Sydney received significant falls at Belrose (84mm), Mona Vale (62mm) and Wahroonga (59mm).
The rain is predicted to increase on Thursday after intensifying in the Illawarra and surrounding areas on Wednesday afternoon, and continue through to the weekend.
Flood watches have been issued for central and southern coast rivers.
Minor to moderate flooding is expected for the Wollombi Brook, Lower Hunter, Nepean, Hawkesbury, Upper Coxs, Colo, Macdonald, Parramatta, Cooks, Georges, Woronora, Shoalhaven, Clyde, Moruya, Deua, Macquarie, Queanbeyan and Molonglo rivers.
Localised flash flooding is possible in Newcastle, the Central Coast, north and south Sydney and the Illawarra coast.
The threat of further flooding comes while northern NSW communities continue a clean-up, amid a stoush between the NSW and federal governments over funding for the recovery effort.
NSW announced new grants to assist with the rebuilding of flood-damaged, uninsured homes on Monday, with the government saying it was putting up the money because it was tired of waiting for federal input.
Prime Minister Scott Morrison wrote to Premier Dominic Perrottet on Tuesday to stress his government was happy to split funding.
Mr Perrottet said while his government was willing to work with the Commonwealth, it would ultimately meet the needs of communities as they're identified.
"If we can do more we will, we've requested further (federal) assistance ... From my perspective, I want to make sure we give as much support as we can," Mr Perrottet told ABC Radio National on Wednesday.
"The other issue we have, which is a bit frustrating, is there seem to be people who are disqualified (from receiving federal funding) ... based on where they live.
"To me, it doesn't matter if you've lost your home in Lismore or Mullumbimby, you're in the same situation."
Mr Perrottet still hopes to get support from the federal government to expand the homes grants scheme.
He attributed discrepancies in funding delivery to a lack of understanding by the federal government.
"There's probably some public servant in Canberra who thinks that if you are in a certain community that has been flooded, as they all did, that somehow you are at a bigger disadvantage than someone who has lost a home or business somewhere else," he said.
He also wants to reduce bureaucracy in the administration of grants so money can be distributed faster.
