A Christmas Day bushfire has decimated more than 100 homes in Australia's Victoria state, authorities say.

Authorities said 98 homes had been bulldozed in Wye River and 18 at Separation Creek. No wounds are accounted for.

Many firefighters have been engaging the burst along the renowned Great Ocean Road in Victoria's south-west, prominent with holidaymakers.

A change to cooler climate and downpour has extraordinarily lessened the risk, however some crisis notices stay set up.

About 1,600 occupants and sightseers from the prevalent traveler spot of Lorne were cleared on Friday in the midst of reasons for alarm that a wind change would push the flame towards the town, yet were permitted to return on Saturday.

A large number of those compelled to leave their homes needed to spend Christmas night in hurriedly orchestrated shelters.More than 500 firefighters, 60 tankers and 18 air ship have been included in battling the blazes.

Victoria Emergency Management Commissioner Craig Lapsley said they were "working day and night to bring this fire under control".

He cautioned that despite the fact that the quick risk had facilitated, the flame could "blaze" for quite a long time to come.

Christmas Day burst guts Australia homes