A $240,000 state cost threshold is considered to be the primary hurdle blocking Henley Ridge fire victims from receiving the same financial support as their fire-affected neighbours.

According to the federal government’s National Emergency Management Agency (NEMA), a number of criteria must be met for a disaster event to trigger joint state and federal funding under the Disaster Recovery Funding Arrangements (DRFA).

The event must be considered an eligible natural disaster, have required a coordinated multi-agency response and have cost the state at least $240,000.

“To date, the Markwood fire has not been activated by the Victorian Government under the DRFA,” the NEMA spokesperson said.

“The state government would identify the assistance required to support impacted communities, and the Australian Government would co-fund it.

“Importantly, the states are not bound by the DRFA and can make available other forms of assistance following a natural disaster.”

A Victorian government spokesperson said Emergency Recovery Victoria (ERV) had been working with Rural City of Wangaratta Council to support residents affected by the Markwood fire.

State member for Ovens Valley Tim McCurdy has raised the matter in parliament twice, as recently as last week, and said the system is failing residents like Leshya Perkins.

“I’m hopeful the government will review the situation and work through the technicalities, so these residents receive the support they deserve,” he said.

“It simply isn’t fair that the timing of the fire determines whether they receive help or not.”

Fire-affected residents from fires in Goomalibee, Longwood and Ruffy have recently been recognised under Category B and Category D support respectively under the DRFA.

A relief centre was activated for the Goomalibee fire, which is understood to have been considered in the eligibility process.

Mr McCurdy said it was unacceptable families in Markwood remained ineligible for the same assistance.

“My hope is that the same level of recognition can now be extended to the Markwood families who also lost their homes; their loss is no less significant, and they should not be left behind,” he said.

Indi MP Helen Haines said she has written to both state and federal ministers for emergency services, Vicki Ward and Kristy McBain.

In her letter to Ms McBain, Dr Haines said: “it is clear that despite the date on which they suffered loss as a result of a bushfire, the loss and need is just as devastating for these residents”.

As part of her broader advocacy to government about bushfire response, Dr Haines said she had asked the federal government to review and streamline eligibility criteria and administrative process for disaster payments.

“Fire affected communities should be able to access emergency relief quickly and clearly, without uncertainty about whether their losses fall within narrow boundaries that compound their trauma,” she said.

Dr Haines said she wrote her letter to Ms Ward in February, and is yet to receive a response.

Rural City of Wangaratta Council was contacted for comment.