The list of council areas eligible for flood funds was expanded this morning.

The Pyrenees (Lexton) and Corangamite (Skipton) shires have been added to the list for the Australian Government Disaster Recovery Payment - along with Hepburn (Creswick) and several others in northern Victoria.

Central Goldfields Shire (Carisbrook) remains on the list - along with several inner city Melbourne councils.

Ballarat, Moorabool, Golden Plains and Ararat are still not included.

Twice-flooded Lexton mother-of-four Kara O'Brien said it was "amazing" news - and the family would attempt to apply again.

EARLIER: A Lexton family left homeless by two floods in two weeks has been left shattered after learning they are not eligible for government help.

Kara O'Brien made national news on October 7 when her rented home filled with water from the bloated Burnbank Creek.

And it could happen again - with Ballarat expecting thunderstorms with a 100 per cent chance of 10-15mm of rain on Friday.

The family of six have been forced to throw out "half of what we own" including clothing, electrical goods and bedding - due to septic tank runoff in Lexton's floodwaters.

This week her applications for the Australian Government Disaster Recovery Payment and the smaller Emergency Relief Assistant Payment were both rejected.

"I'm devastated," she said.

"It's frustrating that we are not going to get anywhere.

"It's just heartbreaking that I can't move forward for the family."

Ms O'Brien said she was told she was not in an eligible shire.

While Central Goldfields and even Boorondara in Melbourne are "declared disaster zones" , Pyrenees and Corangamite are not.

"If the decision-makers are reading this, I just want to say that no matter what area you are in, take the circumstances into account," she said.

"Don't knock people back because they don't live in an area where there were a lot of flood affected homes.

"Lexton really needs to be noticed - and something needs to be done about the state of the creek here."

Ms O'Brien said at least four Lexton homes were badly flooded.

Wannon Federal Liberal MP Dan Tehan was in the town on Wednesday and said the official list of disaster-hit council areas needed to be fixed immediately - as Lexton was among one of the first communities affected.

He also encouraged locals to use free computers at rural transaction centres (post offices and council hubs) to make their online applications.

Ms O'Brien said she had to apply for the funding in her car, on a mobile phone.

To add insult to injury, Ms O'Brien and husband Craig Elliott also had difficulty getting enough points to verify identification for a MyGov account.

They never travelled overseas - and do not own passports.

"The other thing is, we both work - and we've not had a Health Care Card for at least 10 years," she said.

Ms O'Brien approached the Uniting (formerly UnitingCare) for help - but was also told she was not eligible because she did not have the concession card.

It was a different story at the Salvation Army, who gave her money and a letter allowing them to buy clothing and linen down the track.

"The thing is, if we buy goods now, we have nowhere to put them," Ms O'Brien said.

"The family is split over three addresses at the moment.

"Our accommodation is all ok but we really can't maintain what we're doing."

She said they loved Lexton, but believed it could take about six months to repair their home.

In the meantime, her eldest son is studying VCE at Ballarat High School, where exams are about to start.

Their 14-year-old daughter is at Beaufort Secondary College, a 12-year-old son is at Waubra Primary and their 4-year-old will be at Beaufort Primary next year.

"We've kept things we should really replace because I don't think we can afford it," she said.

"The sofa, for example, got soaked - and we're also trying to dry out the dining room table and cabinets.

"One of the mattresses on the beds got wet - and with septic tanks flooded, it had to go."

Ms O'Brien is now back at work in Beaufort - and says she cannot afford to take any time off.

The extended family has set up an appeal on GoFundMe.com - search for 'Please help the Elliotts get back on their feet'.

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