Some people in remote areas of the island state are not likely to be reconnected to the grid until Thursday following strong winds which first hit at the weekend.
More than 660 homes were damaged on Monday in Victoria, including two houses in the Dandenong Ranges and Corio that were destroyed.
Bathing Boxes at Mornington were among the buildings damaged in Victoria. (Daniel Pockett/AAP PHOTOS)
The joint state and federal funding is available for individuals and councils.
"(This) will help councils clean up communities as quickly as possible, ensure public safety and reinstate critical assets," federal Emergency Management Minister Jenny McAllister said.
More than 3000 properties in Victoria and roughly 3800 in Tasmania remained without power at midday on Friday.
TasNetworks head of network operations Jason King said the rough weather meant crews had been unable to properly assess damage.
"Some parts on the extremities of the network have had multiple faults, multiple times with these waves of weather," he told ABC radio.
"For some people, that is going to be another week before the power comes back on."
TasNetworks has flown in about 20 contractors from NSW to help repair power lines.
Victoria's Emergency Services Minister Jaclyn Symes thanked communities for their patience, noting it had been a long and stressful week.
The disaster funding is available for seven Victorian councils, but the number is expected to grow as more assessments are completed.
A severe wind warning was in place for eastern Victoria on Friday, covering parts of the Gippsland region.
Tasmania's north and northwest were worst hit by the winds, with the head of the state's peak farming body tipping a damage bill in the millions of dollars.
Flooding damaged 37 properties in the Derwent Valley in the state's south, including homes, a caravan park and bowls club, and cut roads for several days.
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