Residents evacuate as Victorian bushfire flares up

A bushfire that destroyed 116 homes on Christmas Day is threatening more towns again as heat spikes on New Year's Eve force residents to evacuate the region.

Smoke plumes from a fire threatening Victorian coastal towns are clearly visible from nearby Apollo Bay as authorities tell residents to leave their homes.

A text message alert was sent at 10am recommending people leave Kennett River, Grey River, Sugarloaf and Wongarra along the Great Ocean Rd.

Police assisting residents during the increased fire threat. Source: 7 News.

A total fire ban has been declared across south and central Victoria. Source: 7 News.

The devastating blaze that destroyed 116 homes in Wye River on Christmas Day is sparking up again as temperatures rise into the high-30s on New Year's Eve.

Police have door-knocked homes and Emergency Management Commissioner Craig Lapsley says people must have either left or have a fire plan in place.

Mr Lapsley said Victoria would stay warm well into the evening and a severe fire danger warning was in place for most of the state.

"We've got severe fire danger ratings for the southwest, for central and western Gippsland," Mr Lapsley told reporters on Thursday.

Road closures have begun in the area. Source: 7 News.

Strong winds are predicted for later in the day increasing the fire risk. Source: 7 News.

"We've got very high in central Victoria and western Victoria, we've got total fire bans in five districts.

"People need to understand what they mean when we're moving into what is New Year's Eve and also thinking through what you're doing through the evening."

Victorian Premier Daniel Andrews said hundreds of firefighters, 60 aircraft and a combination of tankers and other information-gathering technology would be used to prepare for the blaze, which has grown by 500 hectares in the past 24 hours.

"We should just spare a thought for all of those who will be working tonight, who won't be having a drink, won't necessarily be out there celebrating," he told reporters.

"They will be working hard as they do every hour of every day. We're in their debt and we wish them a very happy New Year as well."

More than 400 personnel from the CFA, MFB, Parks Victoria and the Department of Environment are working to contain the fire.

This resident was forced to flee her home on Christmas Day and now is leaving her home again due to the increased fire risk. Source: 7 News.

Residents have been advised to leave the area. Source: 7 News.

Incident controller Alistair Drayton earlier said while the fire had been asleep since last week's destruction, fire crews had feared it would wake up in Thursday's hot and windy conditions.

He praised Wye River and Separation Creek residents for leaving early on Christmas Day so there were no fatalities.

Fireworks will go ahead in Melbourne but a total fire ban has been declared across south and central Victoria, with temperatures around 40 degrees expected in many parts of the state.

Firework permits for celebrations along the coast from Torquay to Apollo Bay have been revoked.

Melbourne Lord Mayor Robert Doyle predicts the city's display will be the "biggest and best ever" with nearly 10 tonnes of fireworks to be set off.

News break - December 31