
3.45pm: A Rural Fire Service spokesman said the fire started on Dunns Creek Road and is now in nearby state forest.
"The fire is heading towards Burri Road, Ivy Place and Worthy Drive," he said.
"We now have 12 appliances and we have a helicopter on route."
The spokesman said there was no immediate threat to homes, but "there is potential and units are being assigned to property protection".
"Fire and Rescue NSW have been asked to assist."
"Malua Bay and surrounding brigades are attending.
"Residents should keep themselves informed as this is a rapidly developing fire."
He said there were reports of elderly residents who needed assistance, but no formal evacuations had taken place.
Police are at the scene.
3.35pm: Winds are reported to be fierce.
BREAKING: Fire crews are attending a fire off Dunns Creek Road and houses are understood to be under threat.

Several appliances have been sent to the scene on the afternoon of Wednesday, September 13.
The fire is burning on land down a driveway on the eastern side of Dunns Creek Road.
An emergency services spokesman said it was understood to be a grass fire and nearby houses were under threat.
Fire crews are attending a fire off Dunns Creek Road and houses are understood to be under threat.
Several appliances have been sent to the scene on the afternoon of Wednesday, September 13.
The fire is burning on land down a driveway on the eastern side of Dunns Creek Road.
An emergency services spokesman said it was understood to be a grass fire and nearby houses were under threat.