Exercises to help states' emergency services work together when it comes to bushfires and other natural disasters will be improved with upgrades to the Emergency Management Australia agency.
The move was announced on Friday by Emergency Management Minister David Littleproud, as part of the federal government's response to the Royal Commission into National Natural Disaster Arrangements.
Firefighters who battled the Upper Murray fire, which started in December, were among those to tell the Royal Commission about problems they faced communicating with other agencies.
One of the 78 recommendations was to conduct multi-agency, national-level exercises to improve the capacity to respond to disasters - including across borders.
The federal government said it "supports in principle this recommendation", rather than the higher level of "supports".
Its report stated "it is a complex undertaking if exercises are to be productive".
Mr Littleproud said part of the response was lifting the capability of Emergency Management Australia.
"We'll make sure there's a data fusion of all the states coming together to make sure that our crisis centre in Canberra can make sure the critical information is disseminated quickly to those people on the frontline," he said.
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Other Royal Commission recommendations aimed at solving cross-border issues were "noted" and welcomed by the federal government, but the report said they were aimed at state governments.
It also "supported in principle" national regulations for charitable fundraising so money raised can be shared across borders.
Mr Littleproud also put the pressure on state governments to agree to a national framework for the contentious issue of hazard reduction burns.
"We understand there's reasons why hazard reduction can't take place at times, but we have to have a commitment and an understanding that while it's not the only contributing factor to the severity of natural disasters, it is one that can be mitigated," he said.
Meanwhile, a share of $4.5 million in money raised through the Victorian government and Bendigo Bank's Victorian Bushfire Appeal will go to Towong and Alpine families, plus money has been provided to Albury Wodonga Foodshare and The Man From Snowy River Festival.