NEW South Wales Labor is urging the state and federal governments to activate Category C assistance for flood-affected areas.

Under the Natural Disaster Relief and Recovery Arrangements, the Category C assistance would provide recovery grants for affected small businesses and primary producers in the Tweed.

Richmond MP Justine Elliot said activating Category C was an immediate way to provide much-needed financial assistance to the region.

"Our region desperately requires more assistance from both the federal and state governments,” Mrs Elliot said.

"They have the capacity to activate Natural Disaster Relief today to ensure that major and significant funding and assistance is delivered to our community.

"The recent flood has been devastating for our region. We've had lives lost.

"We've seen family homes destroyed and we've seen lives completely ruined.

"Our councils have had major infrastructure damage.

"I've visited some of the worst affected areas and it is heartbreaking talking to locals and hearing firsthand about the extent of the damage.”

Category C assistance is only issued when the impact of the disaster is severe and both state and federal governments need to approve the activation of the assistance package.

Mrs Elliot said she had written to the Prime Minister and NSW Premier about providing Category C assistance to the Far North Coast region in flood- affected areas.

"We need urgent action,” she said.

"I'm demanding that both the Prime Minister Malcolm Turnbull and the NSW Premier Gladys Berejiklian deliver major funding to rebuild the North Coast by activating Category C funding through the Natural Disaster Relief and Recovery Arrangements.”

Shadow Minister for the North Coast Walt Secord said activating Category C would help the Tweed get "back on its feet again”.

"Unfortunately, many North Coast businesses and farmers cannot afford to get loans, they need grants,” Mr Secord said.

"I am surprised that the declarations have not already occurred, it is time the state and federal governments made a Category C declaration for the North Coast.”