The standard non-parole period for convicted bushfire arsonists has increased from five to nine years.
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Member for Goulburn Wendy Tuckerman says the legislation will ensure firebugs who endanger lives and property will spend more time behind bars.
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"With another hot and dry summer around the corner, it is important there are strong laws in place to protect farmers and communities who are already battling drought," Mrs Tuckerman said.
"My message to would-be firebugs is to stop and think about the children and families who could be killed or injured and the huge economic and emotional toll of being homeless and having to rebuild homes and farms from scratch," she said.
Figures from the NSW Government showed the cost of disaster relief and recovery from bushfires had risen from $11.4 million in 2015-16 to $23 million in 2016-17.
The offence applies to the charge of intentionally causing a fire and being reckless about it spreading on public land or someone else's property.
The legislation reflects the seriousness of the crime, Police and Emergency Services Minister David Elliott said.
"There is no excuse for starting a bushfire."
The state remains on high alert because of the prolonged drought, NSW Rural Fire Service Acting Commissioner Rob Rogers said.
"Our firefighters already have a difficult and dangerous job responding to fires and keeping people safe, let alone having to risk their lives because of reckless behaviour," he said.
In November 2018 increased the maximum penalty for deliberately starting a bushfire from 14 to 21 years.