CANBERRA - Almost 2,000 houses have been destroyed in Australia's months-long bushfire crisis, officials say, as crews prepare frantically for worsening conditions.

After ferocious conditions last week, firefighters are using milder weather to boost containment lines around fires engulfing south-eastern Australia.

Temperatures are likely to soar again on Friday, prompting fears that two fires could form a new "mega blaze".

At least 25 people and millions of animals have died since September.

Australia is fighting an unprecedented bushfire season, fuelled by record temperatures and widespread drought.

On Tuesday, New South Wales (NSW) officials said fires there had claimed 1,588 homes and damaged 653 more.

About 200 homes have been destroyed in neighbouring Victoria, adding to more than 100 lost in other states.

The Insurance Council of Australia estimated the damage bill had reached A$700m (£370m; $485m), but said it expected the cost to rise significantly.

Blue smoke still lingers over the town of Wingello, even after cooler weather and a little rain.

The trees and ground along the road are blackened and scorched. On the corner of Forest Road, May King's house has gone; only a steel chair frame still recognisable in the ashes.

But the people of Wingello are talking about a miracle here. Only 12 houses were destroyed; dozens more were saved.

At the fire station Fire Captain Mark Wilson is still stunned and emotional over what his teams managed to do.

The fire roared in on Saturday night, turning the sky purple, then a hellish red.

"We were just frantically going around trying to hit every fire that came up", says Mark. "It was really hard to see where we were winning."

Fire crews from other towns came to help defend Wingello, a return favour for the help the Wingello crew gave in earlier fires last month.

Today some of the 400 residents were back clearing up, looking around, just amazed, they say, that the town is still there.(FA)