The commission was told that the state government, in consultation with the Country Fire Authority and local government, should simplify the criteria for community fire shelters, consistent with the intention that they offer a lesser level of protection than a fire refuge.

But DRCBG secretary Mel Gajdek said calling the places shelters was very misleading and would confuse residents and visitors during a bushfire threat.

"By calling NSPs fire shelters people will think there's actually a shelter and not just an open space," she said.

The group said that calling NSPs 'last resort options' informed people they would have minimal protection and should only be used if all else failed.

CFA's general manager for Yarra area, Lex de Man, last year warned it would take more than five hours to evacuate Mount Dandenong, but as little as half an hour for wildfire to consume the area under "Black Saturday conditions".

"Ideally we need a last-resort option in every town and within walking distance," Ms Gajdek said.

"Our road situation is such that a very small number of cars can exit the area in ideal conditions - with panic, smoke, car accidents and trees/powerlines across roads this becomes an extremely dangerous choice."

NSP sceptic and Billanook Ward councillor Tim Heenan said "interpretation is changing and it shouldn't be", as it gave the wrong idea to people living in high risk towns.

"Saying it's a shelter has a connotation of safety, especially for the elderly and people in a panic."

But Evelyn MP Christine Fyffe backed the commission's recommendation.

"The name should be simple and fire shelter certainly is. Proper signage must be in place saying exactly what it is.

"We also need better education so that people know exactly what a fire shelter is."