The latest crisis has impacted communities from the Blue Mountains to the south coast, with some facing their fourth flood in 18 months.
Government Services Minister Bill Shorten said the speed at which the payments had rolled out set a record.
Residents in 29 local government areas are eligible for the assistance, a one-off $1000 payment for every adult and $400 for every child affected by flooding.
A disaster recovery allowance is also available for employees and sole traders who lose income as a direct result of a major disaster, and lasts for up to 13 weeks.
Mr Shorten acknowledged the support was "modest" for people dealing with thousands of dollars worth of damage to their home and further help was coming.
"This package of support, and I should just make it clear to the people who are not flood affected, these payments are not a king's ransom," he told reporters in Sydney on Sunday.
"What we do going forward will be the subject of cabinet discussion."
The government will also do more to ensure flood risks are mitigated in the future.
"Do I wish the previous federal government actually invested more in remedial works so we don't have to keep making payments to people affected by natural disasters? Yes, I do," Mr Shorten said.
"W e are where we are.We can't make up for the last 10 wasted years but we can try and do more to make sure we decrease risk."
Prime Minister Anthony Albanese triggered the federal support payments on Wednesday, with people eligible to claim on Thursday afternoon.
Mr Shorten visited the Services Australia Smart Centre in Liverpool on Sunday for a briefing on support activities.
Staff have been working around the clock and through the weekend to process the claims, Mr Shorten said.
Flood-affected residents are starting to return to their homes to assess the damage caused by days of unrelenting rain and severe storms.
The government has mobilised some 250 Australian Defence Force troops and three helicopters to assist with the flood response and clean-up.
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