'It's devastating, heart-wrenching': multiple homes lost in south-west fires

It will be a "long road ahead" for Skipton which has been hit with floods, drought and now devastating fires, which have destroyed more than 59 structures, including homes.

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In the Otways, one home has been lost and a number of sheds and outbuildings have burnt thousands of hectares as firefighters battle to contain multiple blazes.

The Skipton fire, which is now contained, has burnt about 19,299 hectares.

Burnt Property along Mt William Road near Skipton, taken on 10 January 2026. Picture by Kate Healy

A state control centre spokesperson said residents of Streatham, Carranballac and rural Skipton, not including the township, have been instructed not to return home while fire crews conduct tree hazard assessments and clear roads in the area.

Of the 59 structures lost in the blaze,18 were houses.

Smoke reached Warrnambool on Monday from the Otways, the size of which Barongarook fire brigade captain Steve Brooke put into perspective in a Facebook post.

"Word is this fire is the largest in the Otways since Ash Wednesday so that puts it into a little bit of perspective of what we are dealing with," he wrote.

"Please be prepared, have your personal treasures, legal documents and anything else that you hold dear to your heart within reach and/or loaded in your vehicles and leave if asked to do so."

The fire at Kennedys Creek, where one house has been lost, has burned up to 3202 hectares and has crossed the Upper Sheepyard Track on Monday, January 12, 2026, with up to 20 units on scene.

The Carlisle River fire has burnt 3303 hectares.

The state control centre spokesperson said the fire had been active overnight on January 11, 2026, particularly in the northern section during the morning of January 12, with both ground crews and aircraft working on to contain the blaze throughout the day.

A fire at Parker Spur is six hectares in size.

The state control centre spokesperson said with winds shifting and milder conditioned set to remain, the Great Ocean Road had reopened with reduced speed limits.

Corangamite Shire Council mayor Kate Makin said while an assessment of the damages was still underway, the community would feel the lasting affect of the devastation.

"It's devastating, heart-wrenching, it's going to be a long process and a long time recovery," she said.

"We'll need to be there to support our community for a long time."

The sun shines through the Otways fires' smoke haze blanketing Derrinallum's Mount Elephant on Sunday, January 11, 2026, Picture by Justine McCullagh-Beasy

Wannon Water managing director Steven Waterhouse said it was actively monitoring the impact of the Otways fires on Warrnambool's water supplies, which come from the Gellibrand River.

"We kept a close eye on our Otway Water Supply System over the weekend to monitor any impacts from the bushfires and extended power outages in the area," he said.

"The fire burnt close to one of our pump stations, but an inspection by our team this morning has shown there is no damage to the facility. Power was restored [Sunday] night, and the system is now running as usual. At this stage, water quality is not impacted.

"As the fires are not yet controlled, we'll continue to monitor the situation and respond as needed.

"We'd like to thank all those involved in the firefighting response and recovery efforts and for keeping our communities safe."

A CFA tanker is positioned to protect some telecommunications infrastructure during burning out operations south of Carlisle River. Photo by Steph Cawsey

Premier Jacinta Allan on Monday January 12, 2026 visited Natimuk, near Horsham, one of the worst-hit communities, to announce the latest support package for bushfire-affected communities - including financial and mental health support for our farmers.

The Albanese and Allan Governments are making assistance payments of up to $52,250 available to eligible uninsured households so they can re-establish their principal place of residence.

"We know there are so many Victorians out there who want to dig deep to support our farmers and fire-affected communities - that's why we have set up the Victorian Bushfire Appeal."

He said firefighters would be out on the fireground for many weeks.

Emergency management commissioner Tim Wiebusch said while conditions were easing in some parts of the state the slightest of winds were still causing the fires to moving around.

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