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Several emergency warnings have been put in place throughout Victoria, meaning people in those areas are in "imminent danger," according to Victoria Emergency.
"It's likely to be a significant fire weather day in Victoria's history," said Kevin Parkyn, of the Victoria Bureau of Meteorology. "It's a very serious, life-threatening situation. Make no mistake about it."
The Australia Bureau of Meteorology said that fires in the region "exhibited very dangerous behavior overnight" that are "likely to worsen today."
"If you're planning on visiting East Gippsland today or Monday, don't do it," Victoria Emergency Management Commissioner Andrew Crisp said Sunday. "If you're already visiting East Gippsland, you need to leave the area today ... If you live in East Gippsland, you need to move to safer locations."
Lightning started 16 blazes in the state on Sunday, CNN affiliate 7 News reported.
Fires are also burning in the neighboring state of South Australia, where some areas are experiencing "catastrophic fire danger," the highest warning on the scale, the Bureau of Meteorology said.
Petition to cancel fireworks
For weeks, the New South Wales capital of Sydney has been shrouded in smoke from fires burning across the state -- leading to calls for the city's famed New Year's Eve fireworks to be canceled.
Sydney's Lord Mayor Clover Moore said she had "been moved by the outpouring of support and care for the community," but the event would continue as planned.
"Our fireworks are planned 15 months in advance and most of the budget -- which is largely allocated to crowd safety and cleaning measures -- has already been spent," she said.
Prime Minister Scott Morrison said Sunday the celebration should go ahead because it is "important to send a message to the world."
"Subject to the safety considerations, I can think of no better time to express to the world just how optimistic and positive we are as a country," he said.
John Barilaro, the deputy premier of NSW, tweeted on Monday that the fireworks should be canceled.
"The risk is too high and we must respect our exhausted (Rural Fire Service) volunteers. If regional areas have had fireworks banned, then let's not have two classes of citizens. We're all in this crisis together," he said.