The WA Government and electricity utility Western Power will fund a $10 million assistance package for victims of last December’s Toodyay bushfires.

However, some victims may still take legal action against Western Power.

The bushfires at Toodyay, 85km northeast of Perth, destroyed 38 homes, damaged 137 properties and left a $100 million damage bill.

The fund announced last week by Western Power and the WA Government comes after months of talks and several reports on the cause of the bushfires.

Fire victims will be able to claim up to $190,000 under the assistance package, which includes up to $150,000 for established homes and up to $30,000 for home contents.

WA Premier Colin Barnett says the Government and Western Power will each pay $5 million as an “ex-gratia, goodwill payment”.

Some of the people affected by the bushfires were not insured and many others were underinsured.

Mr Barnett says those receiving payment will still be about to take legal action against Western Power.

The money offered compares favourably with the support to those in Victoria’s Black Saturday bushfires, he says.

“In Victoria residents received $15,000 for contents and a maximum of $85,000 for homes destroyed, which were primarily funded by donations.”

Mr Barnett says although one report into the Toodyay fires found a power line started the blaze, Western Power maintains it’s not liable.

Western Power MD Doug Aberle says the cash offer will not be the result of an insurance payout but will be taken from the company’s reserves.