A bushfire burns out of control and threatens homes near the town of Shallow Bay on Australia's east coast on Friday (September 27), the ABC reported.

Local media reported the Rural Fire Service as saying that the fire is spreading in a north-westerly direction.

Fixed wing aircraft and helicopters dumped water on spot fires to assist firefighting crews on the ground.

The Nine Network reported that up to 40 fires are burning across the state of New South Wales, fire crews are not able to contain 18 of them.

Firefighters were also working on a fire further north that closed parts of the Pacific Highway on Thursday (September 26).