Vanuatu Daily News Digest | ABC reports storm damage in New South Wales

Three people have been killed in wild weather in NSW’s Central Hunter region, where homes have been washed off their footings in the town of Dungog, north of Newcastle.

Emergency crews have been battling "cyclonic" conditions, which have already brought heavy rain and wind gusts in excess of 135 kilometres per hour.

Premier Mike Baird said the weather was likely to worsen in the coming hours, and people in affected areas should consider leaving work early.

For updates on the NSW storm, read our live blog.

Mr Bairdsaid the three people killed this morningin Dungog were elderly residents.

"At the moment, the circumstances are being worked through but we do want their families to know our thoughts and prayers are with them," Mr Baird said.

"It is too early to say what has happened."

Hunter police commander Jeff Loy said several homes had been washed away in the town.

A school bus had been washed off a road near Maitland, and several Hunter homes had been split in half by falling trees.