The town has begun to rally support, organising an appeal to raise money for her relatives.

Port Stephens Mayor Ron Swan said the tragedy had shattered residents.

"This has been a horrific loss of a life, such a young life," Cr Swan said.

"We're absolutely mortified, it's just shock going through the community," he said.

"They're one of the local fishing families that have been there all their lives and were definitely well known."

Mr Swan said Julie Gibson was to be commended for her heroic efforts in trying to save her grandchildren.

"To be burnt the way she's burnt, she's been extremely brave in trying to save the kids," he said.

Paterson MP Bob Baldwin said that he was confident the community would do what it could to help the family.

"The whole of the Tomaree Peninsula is one of those unique communities. It is a very tight population, a lot of people know each other, they come to the support and aid of each other in difficult times."

NSW Fire Brigade Superintendent Greg Adams also praised the bravery of Julie Gibson and said Taya's death reinforced winter fire hazard warnings.

"At this time of the year we do urge people to have an evacuation plan, and know what to do in case of a fire," he said.

"We urge families not to cover heating appliances and to make sure they do not overload electrical appliances."