The 2006-07 Australian bushfire season had an early start with fires in spring time. Eastern and south-eastern Australia has been suffering below average rainfall for a number of years and the winter and spring rains of 2006 were some of the lowest on record. Major droughts in Australia have often been accompanied by severe bushfires; for example the Black Friday fires of 1939, the 1967 Tasmanian fires and the Ash Wednesday fires of 1983 were all associated with drought.

On 24 September 2006, bushfires began burning in various places in the Southern Highlands, Shoalhaven, Hawkesbury River and Hunter Valley regions of New South Wales, Australia. Declarations under Section 44 of the Rural Fires Act, 1997 were issued by the New South Wales Rural Fire Service for the Newcastle, Hawkesbury/Baulkham, Redhead (Lake Macquarie), Shoalhaven and Wollondilly bushfires, enabling the "Commissioner is to take charge of bush fire fighting operations and bush fire prevention measures and to take such measures as the Commissioner considers necessary to control or suppress any bush fire in any part of the State...." Seven (7) houses were burned out, four at Picton, and also Thirlmere, and Oakdale. The wind was from the west and north-west and fed the fire conditions, hampering firefighting by the New South Wales Rural Fire Service. On 12 October 2006, bushfires burned through parts of Hobart's eastern shore, encouraged by strong winds and unusually high temperatures. No lives or homes were lost. In late November Sydney was covered in smoke after raging fires in the Blue Mountains. One of the major fires was lit by a lightning strike near Burra Korain Head inside the Blue Mountains National Park on 13 November. Some people have suggested that the Blue Gum Forest in the Grose River valley was severely damaged by back burning, though this remains to be ascertained scientifically. On 28 November 2006, lightning strikes started 15 fires in the Riverina with the major fires west of Narrandera at Morundah and Tubbo Station were about 1,000 hectares of private property was burnt and Northeast of Narrandera at Colinroobie Ranges over 1,200 hectares of private property and bush land was burnt.

Fires commenced in north-east Victoria in early December. As at 11 December, 250,000 hectares of bushland had burnt but only 3 houses had been lost. On the week end of 9 and 10 December, 3,000 firefighters fought the blazes.[10] Settlements at Gaffneys Creek, A1 Mine Settlement, Burns Bridge, Mount Beauty, Bright, Wandiligong and Tawonga were threatened with the fires. On 11 December 4,000 firefighters fought 13 blazes. The fire has destroyed Craig's Hut, an Alpine hut that featured in the film The Man from Snowy River. In the Gippsland on December 14, eighteen homes were destroyed in the Heyfield–Walhalla area in blazes believed to have been deliberately lit. A 48-year-old man was killed falling off the back of a trailer while fighting the Gippsland fires.[14] In South Australia, nearly 120,000 hectares was burnt at Bookmark, near Waikerie in South Australia's Riverland region. In Tasmania, fires burnt at St Marys on the east coast, Zeehan in the west and in the state's south at Bream Creek and Deep Bay. Fires destroyed at least 18 houses near Scamander where in excess of 17,500 hectares were burnt. A further four homes were lost at Four Mile Creek on December 14. In New South Wales, a fire near Tumut has burned over 13,000 hectares of pine plantation in the Bondo, Billapaloola and Buccleuch State Forests. On December 3, up to 4,000 people were evacuated from Whiteman Park near Perth after a bushfire burnt through about 100 hectares of the park. On December 12, a man in Western Australia was charged with lighting a fire in the Perth Hills. A home in Kalamunda was completely gutted and several were damaged by flying embers.

In January 2007, several new bushfires were burning in the Gippsland region of Victoria. By 18 January, the fires had been burning across Victoria for 48 days and over 1 million hectares had been burnt. Homes and other property and stock as been lost. There was a significant fire in the Adelaide Hills of South Australia, near the towns of Kangarilla and Echunga, the Mount Bold Reservoir, and in parts of Kuitpo Forest. An arsonist lit at least thirteen fires in the eastern hills near Harrogate, but most were contained with minimal damage to property.[26] On the 16th a bushfire burning out of control near the town of Benalla in Victoria's North East caused power to be cut to much of the state when ash and smoke severed major transmission power lines connecting Victoria to the national power grid. The 40C temperature caused a huge demand for power which, when pared with the severing of the line, forced power company's to impose rolling blackouts across the state, including power loss to parts of Melbourne which resulted in traffic chaos across the city. Full power was restored at approximately 12:30 am the following day. On January 17, fires crossed the Murray River into New South Wales and threatened Thredbo. With the fire 12km from the town, 700 tourists were evacuated. On January 21, a large fire began near the F3 Freeway (Freeway which connects Central Coast to Sydney), this resulted in its closure due to the intensity of the flames and smoke levels. On January 22, the fire broke containment lines and headed north thanks to wind levels and hot conditions, the fire also caused the closure of the Pacific Highway and train line. The suburb of Berowra also came under direct threat with residents urged at the time to prepare their properties. The railway station and a train that had stopped there came perilously close to being consumed by the bushfire. Later on January 22, the fire front was slowly contained, allowing all three avenues to re-open by nightfall.