The floods in the Northern Rivers and Hawkesbury-Nepean regions killed 13 people in February and March.
NSW Premier Dominic Perrottet released a report into the disaster in Lismore on Wednesday which outlined 28 recommendations and mapped out a recovery plan that includes a new disaster prevention authority, rescue training for residents in flood-prone areas and a back office merger of emergency services.
In addition, the federal government says it will provide $13.1 million in targeted mental health support to address the disaster's impact on the wellbeing and mental health of individuals and communities.
Health Minister Minster Mark Butler says the ongoing trauma can manifest in increased rates of anxiety, post-traumatic stress disorder and domestic and family violence.
The funding will ensure those most impacted can receive the support they need to recover.
There is funding for services in the Hawkesbury, for First Nations communities the Hunter and those affected in New England, the Central Coast, South Western Sydney, South Eastern NSW and Western Sydney.
Mr Butler says grants will provide communities with an opportunity to drive recovery with projects aimed at building resilience, social connectedness and help with loss, anxiety and distress.
"Mental health is one of the government's highest priorities and I recognise that these flooding events have been hugely traumatic for many people across NSW.
"For some of these communities, this has been their fourth flood in 18 months," he said.
"Access to appropriate mental health services has never been more important. I want to assure those impacted that help is available and this additional investment will ensure there is more mental health support available in these communities," he said.
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